Advancing Buildings Energy Efficiency in Southeast Asia Launch of Online Course on Energy Efficiency in Buildings

Organised by International Energy Agency (IEA)20 May 2021

Retno Gumilang Dewi* and Rias Parinderati*Head of The Center for Research on Energy Policy

INSTITUT TEKNOLOGI BANDUNG

O u t l i n e

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Requirements for Implementing the EE

Improving Energy Performance Potential and Addressing Growing Demand in Buildings Sectors

Energy Efficiency as Mitigation Measuresand the New Sources of Energy

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Energy Efficiency is the Pillar of Decarbonization for The Indonesia NDC 2030

GHG Emissions from Energy Sector

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• End-use Sub-sector: In 2010, more than half of direct combustion emissions are from fuel burning in industry. The direct emissions in 2018shows that power sector has surpassed the industry and the projection (2030) shows power sector is the largest sources of GHG emissions.

• Emissions from indirect (electricity supply) is accounted by building (40-40.4%) and industry (34.5-36.5%)

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PetroluemProducts

Natural Gas

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GHG Emissions Projections (BaU)Historical GHG Inventory

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Natural gas

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GHG Emissions in 2010 (by fuel & sector)

G H G E m i s s i o n s f r o m E n e r g y S e c t o r

GHG Emissions in 2019 (by fuel & sector) Projected GHG Emissions in 2030, by fuel & sector

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EE as Mitigations Measures and New Sources of Energy

Energy Efficiency Measures in the Demand Side:• EE target (2025): 6% industry, 5% transport, 5% Households, 1% commercial buildings (RIKEN, National

Energy Conservation Plan)• Efficiency Standard and Labelling (ES&L)• Indonesia NDC 2030

Energy Efficiency Measures in the Supply Side:• Energy efficiency measures in Power Plants: higher efficient technology (clean Coal technology such as sub-

critical, supercritical, and ultra supercritical coal, gas combine cycle, etc.)• Indonesia NDC 2030

Innovation and research for development :

• Technology householder energy efficiency (lightings, AC, refrigerator, electric motors, etc.)

• System design for equipment and process for less energy consumption

• Office and Commercial Building System Design (Green building)

• Low Energy System Designs, Building’s Code, and Electric Appliances

• City or Town System Design, efficient energy consumption

Energy Efficiency is the Pillar of the Decarbonization for The Achievement of Indonesia NDC 2030

Pillar 1Energy efficiency measures would decrease energy intensity of GDP (Energy per GDP)

Pillar 2Renewable Energy will reduce fossil fuel combustions and reduce emission

Pilar 3Decarbonization of electricity will reduce fossil fuel combustions and reduce emission (as long as the power generation is also decarbonized)

Pillar 4Fuel Switching to low carbon emitting fuels (from kerosene to LPG or natural gas) would decrease GHG emission in Households

0.65 0.68 0.70 0.73 0.75 0.78 0.80

Base Year

BaU

Mitigation

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Final Energy/GDP, TOE/Million Rp

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Baseline

Mitigation

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Final Energy Consumption, MToe

Coal Oil Product Natural Gas Biomassa Electricity Biofuel

- 100 200 300 400 500 600

Base Year

Baseline

Mitigation

2010

2030

Energy supply in power, MToe

Coal Oil Natural Gas Hydro

- 100 200 300 400 500 600

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Baseline

Mitigation

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Primary Energy Supply, MToe

Coal Oil Product Natural Gas Hydro

GHG Emissions Reduction from Energy Sector(Sub-sector contribution)

314 Mton CO2e

ENERGY

Energy Efficiency

41.76 Mton CO2e

Renewable Energy

183.66 Mton CO2e

Clean Energy

74.00 Mton CO2e

Fuel Switching

9.59 Mton CO2e

Commercial

Direct

Industry Power 93.71 Residential 9.59Transportation Transportation 62.66Industry 27.28

AFOLU

5.00 Mton CO2e

Industry

Energy SavingCommercial:- Electricity 165 ktoe

Power Sector- Hydro 3,933 ktoe- Geothermal 33,210 ktoe- Solar & Wind 352 ktoe- Biomass 143 ktoe- Biofuel 676 ktoe

The additions of biofuel to 2010 Transportation:- the use of Biofuel 20,041 ktoe

The Additions to 2010Industry:- The use of biomass 4,775 ktoe- The use of biofuel 4,792 ktoe

Power Sector:- SC 1,777 ktoe- USC 5,978 ktoe- PLTG & PLTGU 7,852 ktoe

The Additions of Gas to 2010 Residential:The use of gas & LPG 6,610 ktoe

Residential

Direct

Indirect 1.91 Indirect 25.87

Direct 21.41

Indirect 10.28

Direct 20.35

Indirect

Energy SavingResidential:- Electricity 2,425 ktoe

Energy SavingIndustry:- Coal 3,302 ktoe- Oil 586 ktoe- Gas 1,649 ktoe

- Electricity 892 ktoe

Energy SavingTransportation:- Oil 6,395 ktoe

CCT 39.34

Gas 34.66

Pillars of Decarbonization – NDC 2030

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COMMERCIAL BUILDING

❑ The dynamics of building (residential & commercial) sector development are driven by populationgrowth, economic development, per capita income, and commercial sector development.

❑ For residential sector, increasing per capita income will increase energy demand, but this will bebalanced by more efficient appliances and the expectation that homes will remain relatively small.

❑ For commercial building, increasing size of service economy &modernization of building equipmentwill result in increase of energy consumption.

❑ De-carbonization in building would result from fuel switching, i.e. from oil fuels to gas/LPG and fromoil fuels to electricity along with deployment of more energy-efficient electric appliances.

❑ Switching from on-site fuel combustion to electricity would reduce direct emissions from buildings,and with a decarbonized electricity generation sector, this switch would lead to emission reductions.

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Biomass

Oil fuels

Gas

Evolution of Final Energy Demand in Commercials and the associated GHG Emissions

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“BaU” no mitigations taken place, it is projected with assumed socio-‐economic parameters. “CMA” unconditional target under the NDC-CM1 (2030) and extended to 2050 (long term). “CMB” increased efficiency penetration to show the potency of EE in residential /commercial

and Commercial and Commercial

Efficiency Standard and Labeling as Policy Measures in the Indonesia's NDC

Improving Energy Performance Potential and Addressing Growing Demand in Buildings Sectors

Type of

AppliancesUnit

Consumers

Office Buildings Hotels Hospitals

Air conditioning % 66 48,50 56,60

Lighting % 17,4 16,97 18,99

Elevator % 3,0 8,05 3,46

Water Pumps % 4,9 5,32 11,62

Utility % - 18,67 3,82

Others % 8,7 2,49 5,51

Total 100 100 100

Methodology: AIM/EndUse

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Hydro

Co-firing

Energy

Device

Internal Energy/Service

Final Service

Energy/Service Flow

Note:

COL

BMS EL_FC_BMS_X

COF

EL_FC_COL_X

EL_COF_PRL

EL_COF_IND

EL_COF_PC_CCS

EL_COF_USC_CCS

EL_COF_IGCC_CCS

EL_COF_DRC

BMS

EL_BMS_ST

EL_COL_SC_EXT

EL_COL_SBC_CCS

EL_COL_USC

EL_COL_USC_CCS

EL_COL_SPC

EL_COL_SPC_ CCS

EL_COL_IGCC

EL_COL_IGCC_CCS

EL_ELY EL_ELY EL_LOSS ELY

NGS

EL_NGS_ST

EL_NGS_OC

EL_NGS_CC

CPO

OIL

EL_CPO_DE

EL_OIL_DE

EL_OIL_ST

EL_OIL_OC

EL_OIL_CC

EL_HYD _MD

EL_HYD _MN

GTM

EL_GTM_LFD

WND

EL_WND_ OFF

SOL

EL_SOL_PV

EL_SOL_PVR

EL_BMS_BFB

HYD

EL_FC_BMS

EL_FC_COF

EL_FC_COL

EL_FC_NGS

EL_FC_OIL

EL_FC_HYD

EL_FC_GTM

EL_FC_WND

EL_FC_SOL

Biomass

Coal

Natural-gas

OIl

Geothermal

Solar

Wind

COF

EL_BMS_CFB

EL_BMS_BECCS

EL_BMS_IGCC

EL_BMS_IGCC_CCS

EL_NGS_NGC_CCS

EL_HYD _LH

EL_GTM_SBC

EL_WND_SON

EL_WND_LON

EL_SOL_CSP

EL_FC_ CPO

BMS_2

BMS_1 EL_FC_BMS_1

BMS

EL_FC_ BMS_2

EL_NGS_GE

The Structure electricity sector in the AIM -EndUse

Selection of technology and estimation of power generation capacity need to be done to meet service demand (Hibino et al., 1996) and estimate the energy demands and the associated GHG emissions released from the operation of the selected technology (Mikiko et al., 2000 ).

• Electricity

• Direct Coal Fired

• Supercritical

• Ultra

Supercritical

• IGCC

• Combined cycle

• Coal w/ CCS

• Biomass w/ CCS

(BECCS)

• Coal

• Natural gas

• Oil

• Biomass

• Geothermal

• Hydro

• Solar

• Wind

• Nuclear

• Other renewable

• Technology lifetime

• Energy consumption

• Efficiency

• Share

• Technology price

• Investment cost and OM cost

• Technological availability

Technology Database

• Energy price

• Energy type

• Energy constrain

• Emission factor

• Fuel availability

Energy Database

• Population growth

• Economic growth

• Life style

• Electricity demand

Socioeconomic Scenario

(BAU & CM scenario)

Energy ConsumptionAbatement cost curve (ACC)

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CM1 - MtCO2eq

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CM3 - MtCO2eq

Service demand

Pivot diagram (EndUse result)

• Biomass

• Co-firing

• Geothermal

power

• Hydro power

• Solar power

• Wind power

• Nuclear power

Technology selection focus on :

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Improving Energy Performance Potential and Addressing Growing Demand in Buildings Sectors

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Requirements for Implementing the EE

EE measures in the demand side could be implemented when the following conditions prevail:

• The needed energy efficient equipment/appliances is available and relatively easy to access

• Equipment producers have technical and financial capability to produce efficient appliances

• Equipment producers have the needed drives to produce efficient appliances (if there is a market demand of their product)

• Energy end users have the driver to safe energy, it can only happen if consumers perceive that the energy cost is high.

• Energy consumers have financial capacity to acquire efficient appliances (usually more expensive than less efficient ones)

The required policies for the above issues are:

• Financial support and incentives to end user to acquire efficient appliances (promotion grant, loan scheme etc.)

• Financial support and incentives to producer to produce and market efficient appliances (low interest loan scheme etc.)

• Award and penalty policies for large scale energy consumers

• Regulations that prevent the production of less efficient appliances

• Gradual increase of electricity price (removal of subsidy)

The energy efficiency measures in the supply side could be implemented when the following conditions prevail:

• There is an economic drive or stimulant for the power generators (PLN or IPP) to improve generation efficiency. Under

current subsidy system such drive may not exist

• Strict regulation that prevent construction of less efficient power plant. The GOI should set minimum thermal efficiency

for new power plants or implement the CAP for power generations

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Requirements for Implementing the EE

The existing policies related to the efficiency measures are as follows:

• Ministerial Regulation No.14 Tahun 2012 concerning Energy Management

• Presidential Instruction No 13/ 2011 concerning Energy and Water Conservation

• Ministerial Regulation No 06 2011 concerning Labeling of Efficient Lamp

• Ministerial Regulation No. 7/2010 concerning Electricity Tariff

• Ministerial Regulation No 14 Tahun 2010 concerning Competency Standard for Energy Manager in Building

• Ministerial Regulation No 13 Tahun 2010 concerning Competency Standard for Energy Manager in Industry

• Government Regulation No. 70/2009 concerning Energy Conservation, which is the derivatives of Law No. 30/2007

• Presidential Instruction No.2/2008 concerning Energy and Water Conservation

• Law No 30/2007 concerning Energy

• Presidential Regulation No. 5/2006 concerning National Energy Policy

• Presidential Decree No. 43/1991 concerning Energy Conservation

EE Implementations in Buildings

▪ Governor Regulation No. 38/2012 Green Buildings and Standards

▪ Ministerial Regulation MEMR No. 57/2017 regarding Minimum Energy Performance Standards and Energy

Saving Label Inclusion for Air Conditioners and Setting standards and labeling of energy efficient air

conditioners

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Requirements for Implementing the EE

Comparing the required and existing policies, to close the gap of the policy to implement energy efficiency measures, in the

demand side (buildings), the following policy/regulations are recommended:

- Introduce regulations (fiscal or award approach) that promote the production more efficient equipment and penalize the

production of less efficient product.

- To ensure the use of efficient energy appliances, introduce incentive packages for energy consumer such as help for

financing of expensive but efficient appliances.

- Introduce building codes that promote energy efficiency: make the use of efficient appliances and energy efficient design

as requirement for construction approval.

- Introduce energy efficiency as major criteria in the rating of industrial environmental compliance (PROPER award, Green

Buildings, Eco Label, etc.)

- Strengthen the capacity of government officials in energy efficiency arena such as in evaluating and inspecting the

efficiency of energy systems and energy audit document reported by building sector; the government officials that need to

be strengthen is not limited to energy ministry but also for officers at other ministry that deals with energy related issues

such as ministry of environment, ministry of public works, ministry of finance etc.

- Introduce energy pricing policy that promotes energy efficiency undertaking: gradual removal electricity and oil subsidies

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1. To ensure that energy efficient building codes (incld. standards) and government regulations on EE in building as well as Green Building, are widely implemented;

2. Prepare human resources needed to design and operate energy efficient building and to develop energy efficient appliances;

3. To introduce carbon label to building energy performance

4. To include energy efficiency measures in building sector in achieving National GHG emission target including de-carbonization beyond 2020;

5. To develop information for data on mitigation activities and emissions reduction potential at the level of end use appliances.

We welcome new ideas/initiatives in this research

Remarks

You can access our publications from http://crep.itb.ac.id/

Thank You

Terimakasih

❑ In your experience, what form of policy (prescriptive, market-based, information-based) have been most effective at achieving change in energy efficiency within the building sector market, and why?

❑ What technologies do you see offering the most potential at improving energy performance and addressing growing demand in buildings in ASEAN?

❑ Where do you think more research and development efforts are needed to achieve a transition to a whole life cycle carbon buildings and construction sector?

❑ In your experience, what are some effective ways of building coalitions of partners to creating successful diagonal partnerships (i.e. between government, industry, advocacy) for prioritizing energy efficiency?

❑ Can you give an example of an effective communications or public engagement strategies that have resonated with public or industry and why?