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Energy is globally needed in daily consumption and production activities in the industry, transportation, and agriculture sectors. As a natural resource, it is used for the prosperity of the community, hence, proper management is needed to ensure sustainable development.
- energy consumption
- renewable energy
- Indonesia
1. Energy Consumption Per Type
In Indonesia, energy consumption increased by 0.99% or 939.100 million BOE in 2021. This consumption included 45.72% biogas oil consisting of gasoil, biodiesel, and blended products in values of 15.76%, 7.10%, and 22.86%, respectively. Other energy consumption includes oil, electricity, natural gas, coal, LPG, biodiesel, biogas, and biomass.
Fossil energy is used as a temporary energy sources in the country, especially during the transition period before it is converted to 100% renewable energy in power plants. Natural gas was used as some form of fuel support for intermittent renewable energy plants, while minerals were mainly utilized for downstream processes. However, the government has started reducing the use of coal as an energy resource by adopting CCS/CCUS (carbon capture, utilization, and storage) technology, using dimethyl ether (DME) to replace LPG and increasing the added value of minerals through domestic downstream. In Indonesia, the energy sector emissions in 2021 amounted to 530 million tons of CO2e. It was predicted that increased peak emissions to 706 million tons of CO2e are bound to occur around 2039. However, they will be significantly reduced after 2040, following the completion of fossil plant contracts [1].
2. Energy Consumption Per Sector
The energy consumption sector, including transportation, industry, household, commercial firms, etc. The largest energy consumption is in the transportation sector, which consumes approximately 45.76% of gasoline. In industries and household, the consumption rates are 31.11% for boiler propulsion purposes and 16.89% for electricity and LPG consumption. Furthermore, the commercial sector consumes 4.97% of energy for lighting and air conditioning in elevators and escalators, while the remaining 1.27% is used for other sectors. The energy consumption per sector has a total of 909,244.973 million BOE.
Energy saving is currently being accomplished by accelerating the global energy transition, which is supported by a mutual agreement among all the International Energy Agency (IEA) members regarding energy efficiency. This acceleration can achieve the target of net-zero emissions in a global scope [2]. Indonesia has designed the implementation of energy management, especially in government regulations on energy conversion. Another effort made by the government is to expand the minimum performance standards (MEPS). Also, this regulation applies energy savings such as electric vehicles, induction cookers through the implementation of government programs, including diesel-to-gas generators, rooftop solar power plants, and electric motor conversion [3].
2.1. Transportation Sector
In 2021, the highest energy consumption rate was in the transportation sector, reaching around 388,417.946 million TOE. The percentage of fuel used in this sector is approximately 55.1%, while the remaining 44.23% and 0.07% are allocated to biogas, as well as gas and electricity, respectively. Of the total energy consumption, the use of gasoline RON 88-100 reached 54.32%, followed by gasoil, avtur and fuel oil at 3.29%, 3.08%, and 0.04%.
To support a zero-emission scenario, at least 47% of a generation’s shares need to come from renewable energy by 2030. In the next 10 years, solar PV capacity is anticipated to multiply a hundredfold to 108 GW. This is intended to usefully support increased electrification in the industrial and transportation sectors. The government has undertaken budget tagging to mark the utilization of public finance for climate change mitigation and adaptation, including energy and transportation activities. However, it had not been able to reduce emission and this in turn has an impact on budget allocations. In the past five years, the state budget has been used to fund the energy and transportation sectors, amounting to IDR 221.6 trillion (81.73%). The current budget allocations and expenditures still fall short of that needed to achieve the nationally determined contribution (NDC) targeted at IDR 318.18 trillion per year from 2020 to 2030 [4].
2.2. Industrial Sector
Energy consumption in the industrial sector without biomass was 317,568.463 million TOE, with the largest consumption of gas at 33.50%, followed by coal and electricity at 33.25% and 23.09%, respectively. However, in 2020, coal consumption decreased by 7.17%.
Increased industrial and vehicular activities contributes significantly to the surge in energy demand in both sectors. In the industrial sector, the demand is projected to align with its growth as stipulated in “Indonesia Vision 2045”. Meanwhile, in the transportation sector it is affected by the growing number of motor vehicles, the substitution program relating to the transformation from conventional to electric cars, the mandatory biodiesel and bioethanol initiatives as well as the shift from private to mass automobiles [5].
2.3. Household Sector
In 2021, energy consumption in households without biomass reached 148,986.796 million TOE consisting of electricity, LPG, kerosene, gas, and biogas at 49.03% and 48.78%, respectively, 1.85%, 0.21%, and 0.12%. The electricity is generally used for air conditioning (AC), washing machines, pumps, ironing, and lighting. Meanwhile, LPG is used for daily cooking, and kerosene is used in some remote areas for both cooking and lighting.
The program initiated by the government concerning the gas network construction for households was predicted to reach 4.7 million SR. Meanwhile, it is intended to be used as a reference in the projection of natural gas demand. In order to achieve the gas network development targeted for 2025, there is need to build approximately one million SR per year. In the BaU scenario, it is assumed to align with the country energy plan, while in the PB and RK, the growth is one million SR/year, and greater than one million/year, respectively. Based on the projection results, by 2050, natural gas demand in the BaU, PB, and RK scenarios is bound to reach 2.2 MTOE, 3.4 MTOE, and 4.5 MTOE, respectively [5].
2.4. Commercial Sector
Total energy consumption in the commercial sector without biomass, such as hotels, malls, hospitals and offices, is 43,485 million TOE with electricity, fuel, LPG, and gas values of 87.53%, 6.22%, 4.59%, and 1.66%. The electricity is used for cooling and lighting, while fuel is used for power plants. Meanwhile, gas and LPG are mostly used for cooking.
The large use of electricity is anticipated to affect the growth of electric vehicles by 2035, and this tends to follow a yearly trend. The government supports the application of induction cookers and the gas network development that encompasses the energy transition roadmap and neutral carbon by 2022. Furthermore, improving energy efficiency in commercial buildings should also consider its conservation from the design stage to building operations through the use of efficient equipment and systems [6].
2.5. Other Sectors
In 2021, other sectors consumed biodiesel, gasoline, fuel, diesel, and kerosene, reaching 10,788.136 million TOE . Generally, this energy is used for tractors, excavators, dump trucks, wheel loaders, belt conveyors, crushers, and generators to drive machinery in the construction sector.
The projected energy demand of other sectors, including the industrial field, is calculated based on the development of its GDP and their usage intensity. Data from the Ministry of Energy and Mineral Resources and Statistics Central Bureau are used to discern the intensity of other sectors. Meanwhile, the projected GDP growth of other sectors is assumed to be comparable to the industrial field [6].
This entry is adapted from the peer-reviewed paper 10.3390/su15032342
References
- Humas ESDM. Masa Transisi Energi Menuju net Zero Emission. 2022. Available online: https://ebtke.esdm.go.id/post/2022/02/21/3091/masa.transisi.energi.menuju.net.zero.emission?lang=id (accessed on 26 December 2022).
- Irena, I. Renewable Energy Policies in a Time of Transition; International Renewable Energy Agency: New York, NY, USA, 2018.
- Kementrian ESDM. Menteri ESDM Serukan Aksi Kolaborasi Efisiensi Energi; Dinas Energi dan Sumber Daya Mineral Prov Sumatra Utara: Sumatera Utara, Indonesia, 2022.
- Hilmawan, E.; Fitriana, I.; Sugiyono, A.; Adiarso. Outlook Energi Indonesia 2021: Perspektif Teknologi Energi Indonesia—Tenaga Surya untuk Penyediaan Energi Charging Station; Pusat Pengkajian Industri Proses dan Energi (BPPT): Jakarta, Indonesia, 2021.
- Sekretariat Jenderal Dewan Energi Nasional. Outlook Energi Indonesia 2019; National Energy Council Secretariat General: Jakarta, Indonesia, 2019.
- Yudiartono, Y.; Windarta, J.; Adiarso, A. Analisis Prakiraan Kebutuhan Energi Nasional Jangka Panjang Untuk Mendukung Program Peta Jalan Transisi Energi Menuju Karbon Netral. J. Energi Baru dan Terbarukan 2022, 3, 201–217.
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