Based on President Law No.5 Year 2006, renewable energy development will be increased. It is targetted to reach 17% of National Energy Consumption (NEC). One of them is biomass which has potential 49,000 MW. Biomass is targetted to meet 5% NEC. Nowadays, most of biomass play role in electricity generation.
Biomass which has been develop to produce electricity are palm waste, rice husk, corn cob, and municipal solid waste. Palm waste is easily found in western Indonesia such as Sumatera and Kalimantan and rice husk or corn cob in Middle and Eastern Indonesia (Sulawesi, Java, Nusa Tenggara, Maluku and Papua). Municipal Solid Waste (MSW) is found in every region.
In order to enhance biomass utilization, government has published new regulation which called as “Feed-In-tariff” in Ministry Decree No.4 Year 2012. Until now, renewable energy which has Feed-in-tariff is biomass only. Feed-in-tariff is published to give confidence to investor that biomass business in Indonesia is feasible to be built. This is biomass selling price list which approved by government.
|Renewable Energy||Selling Price to PLN||F (Incentive Factor)|
|1. Biomass & Biogas||Rp 975/kWh x F||F = 1, for Java, Madura, Bali and Sumatera|
F = 1.2, for Sulawesi, Kalimantan, Nusa Tenggara
F = 1.3, for wilayah Maluku and Papua2. MSW with Incenerator technologyRp 1,050/kWh 3. MWS with Landfill TechnologyRp 850/kWh
In the past, renewable energy investors had to negotiate with PLN to decide selling price of their energy production. It has been complicated issues and taken a long time to do. Nowadays, investor will rely on this regulation only to sell their energy production.
In my opinion, remote and under developed area should utilize their biomass potential to generate their own electricity and no need to get diesel supply due to untouchable aspect.