Renewable energy, the engineering soluton to energy security in Indonesia
This paper states why energy insecurity is a problem in Indonesia, how it was identified, its causes and the current responses to solve this problem. The engineering solutions would focus on sustainability and affordability, without compromising future generation energy needs in Indonesia.
International Energy Agency defines energy security as the “uninterrupted availability of energy sources at affordable prices”. Currently Indonesia faces the lack of long term energy security. This is evident by several indicators of energy security.
Firstly, reserves for crude oil and natural gas are reckoned to run out within 12 years and 42 years respectively. The declining amount of reserves indicates the restricted availability of energy supplies in future.
Secondly, Indonesian government increased prices of gasoline by 44% and diesel by 22% in June 2013 in order to reduce the burden on its fuel subsidy budget. The rising cost of subsidies indicates the increasingly unaffordable and uneconomical energy prices.
Thirdly, Indonesia’s dependence on energy imports indicates its lack of energy security. It is estimated that Indonesia spent 1.4 trillion Rupiah per day to buy oil, and it was foreseen to increase to 2 trillion rupiah in 2017 or 2018. Such massive amount of expenditure indicates its huge dependence on foreign oil and the lack of steady energy supplies.
Indonesia’s over-reliance on oil as a key energy source causes energy insecurity. Currently, non-renewable energy resources for instance oil, coal and gas constitutes 73% of the total energy consumption. In particular, oil still makes up 36% of Indonesia’s total primary energy consumption in 2012, despite its declining significance over the years.With Indonesia’s current oil consumption of about 1.36 million barrels daily (bpd) against oil production of only 826,000 bpd, Indonesia faces problems satisfying domestic energy demand. Moreover, Indonesia’s electricity network was developed in the
International Energy Agency defines energy security as the “uninterrupted availability of energy sources at affordable prices”. Currently Indonesia faces the lack of long term energy security. This is evident by several indicators of energy security.
Firstly, reserves for crude oil and natural gas are reckoned to run out within 12 years and 42 years respectively. The declining amount of reserves indicates the restricted availability of energy supplies in future.
Secondly, Indonesian government increased prices of gasoline by 44% and diesel by 22% in June 2013 in order to reduce the burden on its fuel subsidy budget. The rising cost of subsidies indicates the increasingly unaffordable and uneconomical energy prices.
Thirdly, Indonesia’s dependence on energy imports indicates its lack of energy security. It is estimated that Indonesia spent 1.4 trillion Rupiah per day to buy oil, and it was foreseen to increase to 2 trillion rupiah in 2017 or 2018. Such massive amount of expenditure indicates its huge dependence on foreign oil and the lack of steady energy supplies.
Indonesia’s over-reliance on oil as a key energy source causes energy insecurity. Currently, non-renewable energy resources for instance oil, coal and gas constitutes 73% of the total energy consumption. In particular, oil still makes up 36% of Indonesia’s total primary energy consumption in 2012, despite its declining significance over the years.With Indonesia’s current oil consumption of about 1.36 million barrels daily (bpd) against oil production of only 826,000 bpd, Indonesia faces problems satisfying domestic energy demand. Moreover, Indonesia’s electricity network was developed in the
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