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Renewable Energy 2 Leadership Dialogue Talking Points: SDG7 in Indonesia and the Asia- Pacific SDG7 Conference, Leadership Dialogue UNESCAP, Bangkok — 22 February 2018 Vice Chairman of Commission VII & Chairman of the Green Economy Caucus The House of Representaves of the Republic of Indonesia Agenda 1. Renewable energy 2. Energy access 3. Energy efficiency 4. Energy and health Renewable energy Global RE investment trends Source: Bloomberg New Energy Finance Renewable energy Global solar PV price trend Source: World Economic Forum, Renewable Infrastructure Investment Handbook. Renewable energy Comparison of naonal RE targets Country RE target in naonal energy mix Year Status Indonesia 23% 2025 6% (2017) Mexico 35% 2024 15.86% (2016) China 20% (TPES) 2030 12% (2015) India 175 GW (addional capacity) 2024 13.2% (Oct, 2017) Brazil 28–33% (tanpa hydro power) 2030 5.3 (2015) South Africa 20% 2030 5.5% (2015) Renewable energy Indonesia’s RE potenal No. Type of energy Resources Reserves Potenal 1 Geothermal 11,997.5 MWe 17,546 MWe 29,543.5 MW 2 Hydro 45,379 MW 75,000 MW (idenfied 3 Mini-micro hydro resources) 4 Biomass 32,654 MWe 5 Solar 4.8 kWh/m2/day 6 Wind 970 MW 7 Uranium 3,000 MW 8 Shale Gas 574 TSCF 9 Coal-based Methane 456.7 TSCF 10 Marine current 1995.2 MW (praccal potenal) 11 Ocean Thermal Energy 41,012 MW (praccal potenal) Conversion 12 Tidal 4,800 MW (praccal potenal) Renewable energy RE target for naonal energy mix • The Indonesian government is pursuing policies and strategies to increase investment appete for renewable energy and its poron in the naonal energy mix. 2016 2025 2050 Role of energy Commodity Prime mover of economy Renewables mix 7% 23% 31% Energy provision 169 MTOE 400 MTOE 1.012 MTOE 24% 55 GW 136 GW 443 GW Power capacity (renewables 8 (renewables > 45 (renewables > 167 GW) GW) GW) 2050 31% Energy elasticity > 1 < 1 < 1 25%1,012 MTOE Elec./capita/year 865 KWh 2.500 kWh 7.000 kWh Electrification ratio 88% ∼100% ∼100% 20% 22% 7.6% 2025 23.8 30% 23% % 400 MTOE 2016 31.4 Renewables 169 % Coal MTOE 25% Crude Oil 37.1 % Natural Gas Source: Naonal Energy Council 2017 Renewable energy Environmental technologies market Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets Study (TMS) with the market for environmental technologies valued at USD 6.3 billion in 2016. (Internaonal Trade Administraon, 2016) Renewable energy SDG 7 in Indonesian policy framework • There are 17 specific SDGs to be achieved by 2030, elaborated into 169 targets and 241 indicators. • SDG 13 addresses climate acon, whereas SDG 7 strives to: “Ensure access to affordable, reliable, sustainable and modern energy for all”. • The House of Rep. and the Government (including the Naonal Development Planning Agency as naonal focal point for SDGs) are commied to integrate SDG7 into Indonesia’s naonal policy framework for RE development. • This is in line with SDG 13 on climate acon, the output of which is naonal commitment for cross- sectoral climate acon through Indonesia’s NDC. Renewable energy SDG 7: indicators/subindicators 7.1 By 2030, ensure universal access to affordable, reliable 7.1.1 Proporon of populaon with and modern energy services access to electricity 7.1.2 Proporon of populaon with primary reliance on clean fuels and technology 7.2 By 2030, increase substanally the share of renewable 7.2.1 Renewable energy share in the energy in the global energy mix total final energy consumpon 7.3 By 2030, double the global rate of improvement in energy 7.3.1 Energy intensity measured in efficiency terms of primary energy and GDP 7.a By 2030, enhance internaonal cooperaon to facilitate 7.a.1 Internaonal financial flows to access to clean energy research and technology, including developing countries in support of renewable energy, energy efficiency and advanced and clean energy research and cleaner fossil-fuel technology, and promote investment in development and renewable energy infrastructure and clean energy technology energy producon, including in hybrid systems 7.b By 2030, expand infrastructure and upgrade technology 7.b.1 Investments in energy efficiency as for supplying modern and sustainable energy services for a proporon of GDP and the all in developing countries, in parRcular least developed amount of foreign direct countries, small island developing States and landlocked investment in financial transfer for developing countries, in accordance with their respecRve infrastructure and technology to programmes of support sustainable development services Renewable energy SDG 7 in economic development pillar Sumber: Bappenas 2017 Renewable energy Indonesian energy policy framework Sumber: Bappenas 2017 Breaking down SDG 13 Climate-related hazards, natural disasters 13.1 Strengthen 13.1.1 Number of deaths, missing persons and directly affected persons resilience and aributed to disasters per 100,000 populaon adapve capacity 13.1.2 Number of countries that adopt and implement naonal disaster risk to climate- reducon strategies in line with the Sendai Framework for Disaster Risk related hazards Reducon 2015-2030 and natural disasters in all 13.1.3 Proporon of local governments that adopt and implement local disaster countries risk reducon strategies in line with naonal disaster risk reducon strategies • Disaster management is handled by the Indonesian Naonal Board for Disaster Management (BNPB), overseen by Commission VIII. • Lessons learned: from September to October 2015, daily esmated GHG emissions from fires in Indonesia surpassed average daily emissions from the enre US economy (approximately 15.95 Mt CO2 per day). • Ancipang future crises: BNPB reported that per 22 August 2017, 538 hotspots (fires) have been detected (medium to high confidence), parcularly escalang in West Kalimantan (193 spots) and Papua (143 spots). • Haze is a prime example of how climate change engenders cross-sectoral ramificaons (disaster management, geopolics, environment, forestry and land use, law enforcement, etc.), which in turn necessitates cross-sectoral acon. Breaking down SDG 13 NaGonal policies, strategies, planning 13.2 Integrate climate 13.2.1 Number of countries that have communicated the establishment or change measures operaonalizaon of an integrated policy/strategy/plan which increases into naonal their ability to adapt to the adverse impacts of climate change, and foster policies, climate resilience and low greenhouse gas emissions development in a strategies and manner that does not threaten food producGon (including a naonal planning adaptaon plan, naonally determined contribuGon, naonal communicaon, biennial update report or other) SDG 13 à NDC à Naonal policy, legislaon Outline of Indonesia’s energy policy framework • Improving energy mix à 23% PP No. 79/2014 UU No. 30/2007 renewables by 2025, 31% by Naonal Energy Policy 2030. Energy Law (KEN) • Energy conservaon. • Acceleraon of power plants. UU No. 22/2001 UU No. 30/2009 Oil and Gas Law Electricity Law General Plan for • Elaboraon of targets of KEN. Naonal Energy • Policies and strategies to UU No. 4/2009 (RUEN) achieve KEN. UU No. 21/2014 Mineral and Coal Geothermal Law Mining Law General Plan for • Breakdown and synchronizaon Regional Energy of RUEN and KEN at regional (RUED) jurisdicGons and spaal plans. Breaking down SDG 13 NaGonal policies, strategies, planning -29% (UNCONDITIONAL) INDONESIA’S NDC 2030 -41% (CONDITIONAL) GHG GHG Emissions in 2030 GHG Emissions Reducon Average Emissions Annual Average (MtCO2e) MtCO e % of total BAU in 2010 2 Growth Growth Sector (Million BAU 2000– Tons of BAU CM1 CM2 CM1 CM2 CM1 CM2 (2010– 2012* CO2e) 2030) 453.2 1,669 1,355 1,271 1 Energy 314 398 11% 14% 6.7% 4.5% (33.97%) (58.17%) (66.61%) (71.12%) 88 296 285 270 2 Waste 11 26 0.38% 1% 6.3% 4% (6.59%) (10.31%) (14.01%) (15.10%) 36 69.6 66.85 66.35 3 IPPU 2.75 3.25 0.10% 0.11% 3.4% 0.1% (2.69%) (2.42%) (3.28%) (3.71%) 110.5 119.66 110.39 115.86 4 Agriculture 9 4 0.32% 0.13% 0.4% 1.3% (8.28%) (4.17%) (5.42%) (6.48%) 647 714 217 64 5 LULUCF** 497 650 17.2% 23% 0.5% 2.7% (48.50%) (24.88%) (10.66%) (3.58%) TOTAL 1,334 2,869 2,034 1,787 834 1,081 29% 38% 3.9% 3.2% ** Including peatland fire * Including fugive CM1 = Counter Measure 1 (uncondional) CM2 = Counter Measure 2 (condional) Breaking down SDG 13 NaGonal policies, strategies, planning • The Indonesian government is pursuing policies and strategies to increase investment appete for renewable energy and its poron in the naonal energy mix. 2016 2025 2050 Role of energy Commodity Prime mover of economy Renewables mix 7% 23% 31% Energy provision 169 MTOE 400 MTOE 1.012 MTOE 24% 55 GW 136 GW 443 GW Power capacity (renewables 8 (renewables > 45 (renewables > 167 GW) GW) GW) 2050 31% Energy elasticity > 1 < 1 < 1 25%1,012 MTOE Elec./capita/year 865 KWh 2.500 kWh 7.000 kWh Electrification ratio 88% ∼100% ∼100% 20% 22% 7.6% 2025 23.8 30% 23% % 400 MTOE 2016 31.4 Renewables 169 % Coal MTOE 25% Crude Oil 37.1 % Natural Gas Source: Naonal Energy Council 2017 Breaking down SDG 13 NaGonal policies, strategies, planning Breakdown of electricity producon costs per region Source: Ministry of Energy and Mineral Resources Breaking down SDG 13 Educaon, awareness, capacity 13.3 Improve educaon, awareness-raising 13.3.1 Number of countries that have integrated and human and instuonal capacity on migaon, adaptaon, impact reducon and climate change migaon, adaptaon, early warning into primary, secondary and impact reducRon and early warning terary curricula 13.3.2 Number of countries that have communicated the strengthening of instuonal, systemic and individual capacity-building to implement adaptaon, migaon and technology transfer, and development acons • In 2012, the Ministry of Environment issued a supplement for climate change educaon to teachers, integrang into curriculums in science, social science, civics, and language.
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