By: Tasnim IlmiardhiEnergy Legal Practitioners
Asia recovered quickly from the global financial crisis, this makes economic growth in Asia to be the most prospective. Accelerating economic growth and trigger increased demand for energy infrastructure development. Powerplants, especially renewable energy needs a priority for Asian countries along with the increasing awareness of the society.
Indonesia as one of Asia's economic potential elbow, giving the concept of energy mix to meet national energy demands. From a national energy needs by 17% dkan met through renewable energy. Goals and objectives will be achieved by realizing the optimal energy mix in 2025, where the contribution of 17% Renewable Energy. The composition of other energy composition of biofuels at 5%; Geothermal: 5%; Biomass, Nuclear, Water, Solar, and Wind: 5%, and liquefied coal 2%.
Nuclear Power Plant (NPP)
Burgeoning uranium markets and rejuvenated reactor construction has been matched by a renewed interest in nuclear power – something that is being called the Nuclear Renaissance. Nuclear power presents a solution to electricity crises, dwindling fossil fuel reserves and an increasing worldwide demand for lowered carbon emissions. Investments are pouring into projects in countries with established nuclear programs, as well as emerging markets in Southeast Asia where nuclear power is the way of the future.
Nuclear Power brings together decision makers from important regulatory authorities in key countries as well as case studies from power generation companies with long experience in the nuclear power sector. From government regulation to tenders, construction, commissioning through to waste management and safety, this international conference maximizes the ways in which you can capitalize on opportunities to invest in the growing nuclear power sector.
The legal basis
Law No 10 of 1997 about Nuclear Energy, Article 13 concerning the development of commercial nuclear power plant said that in principle the commercial nuclear power plant could be built by state enterprises, cooperatives or private.
Law No.17 of 2007 about Long-Term Development Plan (RPJP) explicitly states that nuclear energy can be expected to contribute to the national electric energy generation in the development stage 3 (2015-2019). If the preparation and development of nuclear power plants take approximately eight years, the government must decide nuclear power plant construction plan in late 2010.
Law No.30 of 2007 on Energy, said that the existence of nuclear as renewable energy, and is a source of national energy management.
This was also confirmed in Law No. 30 of 2009 on Electricity, set out in Chapter V of Article 6 regarding the utilization of primary energy, which includes set the source of electricity is one of them is a renewable primary energy (this is certainly also stipulated in the Law on Energy). Also mentioned that the Department of Energy and Resources Mineral Resources (DESDM) as the government is technically responsible for business development of commercial power by the state enterprises, cooperatives or private.
Presidential Regulation No. 5 / 2006 on National Energy Policy up to 2025 states that the Nuclear Energy became one of the new energy that must be developed. It is then translated into the National Energy Blueprint DESDM, that nuclear energy will meet the 2% of the total national primary energy in 2025, or about 4000 MWe.
Nuclear energy is part of the (optimum energy mix) symbiotic and synergistic with fossil and other renewable energy in meeting national energy needs, in accordance with the objectives of national energy policy. The inclusion of nuclear power plants (NPP) into the national electricity system is the right solution to support the national energy security (energy security).
Location and Capacity
Indonesia plans to build a nuclear power plant at least a minimum of 5 (five) nuclear power plant with a capacity of 1.000 MWe, with locations include the following:
Two nuclear power plants would be at the location of Java island and another one on the island of Madura, with economic considerations of scale from the island of Java. Level of demand for electricity reaches 23 Gwe Java island, or about 70% of national electricity needs. With the projected economic growth of at least 7%, then expected to reach 70 Gwe in 2027, so it is necessary to increase capacity additions 50GWe. In addition, another consideration is the readiness of the infrastructure for electricity distribution have awakened over the years. The plan for the Java island nuclear power plant will be built twin (twin unit).
While for the rest would be built in East Kalimantan and Bangka-Belitung islands. For the NPP to support the network of East Kalimantan island of Kalimantan (Borneo), while the NPP Bangka-Belitung to be included in Sumatra and the ASEAN Grid network.
Funding
Development of NPP in Indonesia is the high cost required, but in operation, nuclear power plants require little cost, much lower than conventional power plants. This is because, having nuclear fuel energy content is much larger than the existing fossil fuel today. The low operational costs, would make nuclear power more competitive than other power plants, as well as more stable against changes in fuel prices.
Construction of twin unit 2x1.000 MWe nuclear power plants with a capacity of 3.6 to 4 billion USD needed. That requires a guarantee from the Indonesian government and other incentives to attract investment.
The Indonesian government provides funding alternatives include:
1. Government Loan
2. Government Export Credit
3. Private investment or Consortium
By looking at the financial condition of Government, Indonesia needs private consortia, both nationally and internationally, however, remain open to the possibility of inter-governmental cooperation in building nuclear power plants. Already there are some countries who are interested to invest in nuclear power plant in Indonesia, including France, Korea, Japan and Russia.(*)
Asia recovered quickly from the global financial crisis, this makes economic growth in Asia to be the most prospective. Accelerating economic growth and trigger increased demand for energy infrastructure development. Powerplants, especially renewable energy needs a priority for Asian countries along with the increasing awareness of the society.
Indonesia as one of Asia's economic potential elbow, giving the concept of energy mix to meet national energy demands. From a national energy needs by 17% dkan met through renewable energy. Goals and objectives will be achieved by realizing the optimal energy mix in 2025, where the contribution of 17% Renewable Energy. The composition of other energy composition of biofuels at 5%; Geothermal: 5%; Biomass, Nuclear, Water, Solar, and Wind: 5%, and liquefied coal 2%.
Nuclear Power Plant (NPP)
Burgeoning uranium markets and rejuvenated reactor construction has been matched by a renewed interest in nuclear power – something that is being called the Nuclear Renaissance. Nuclear power presents a solution to electricity crises, dwindling fossil fuel reserves and an increasing worldwide demand for lowered carbon emissions. Investments are pouring into projects in countries with established nuclear programs, as well as emerging markets in Southeast Asia where nuclear power is the way of the future.
Nuclear Power brings together decision makers from important regulatory authorities in key countries as well as case studies from power generation companies with long experience in the nuclear power sector. From government regulation to tenders, construction, commissioning through to waste management and safety, this international conference maximizes the ways in which you can capitalize on opportunities to invest in the growing nuclear power sector.
The legal basis
Law No 10 of 1997 about Nuclear Energy, Article 13 concerning the development of commercial nuclear power plant said that in principle the commercial nuclear power plant could be built by state enterprises, cooperatives or private.
Law No.17 of 2007 about Long-Term Development Plan (RPJP) explicitly states that nuclear energy can be expected to contribute to the national electric energy generation in the development stage 3 (2015-2019). If the preparation and development of nuclear power plants take approximately eight years, the government must decide nuclear power plant construction plan in late 2010.
Law No.30 of 2007 on Energy, said that the existence of nuclear as renewable energy, and is a source of national energy management.
This was also confirmed in Law No. 30 of 2009 on Electricity, set out in Chapter V of Article 6 regarding the utilization of primary energy, which includes set the source of electricity is one of them is a renewable primary energy (this is certainly also stipulated in the Law on Energy). Also mentioned that the Department of Energy and Resources Mineral Resources (DESDM) as the government is technically responsible for business development of commercial power by the state enterprises, cooperatives or private.
Presidential Regulation No. 5 / 2006 on National Energy Policy up to 2025 states that the Nuclear Energy became one of the new energy that must be developed. It is then translated into the National Energy Blueprint DESDM, that nuclear energy will meet the 2% of the total national primary energy in 2025, or about 4000 MWe.
Nuclear energy is part of the (optimum energy mix) symbiotic and synergistic with fossil and other renewable energy in meeting national energy needs, in accordance with the objectives of national energy policy. The inclusion of nuclear power plants (NPP) into the national electricity system is the right solution to support the national energy security (energy security).
Location and Capacity
Indonesia plans to build a nuclear power plant at least a minimum of 5 (five) nuclear power plant with a capacity of 1.000 MWe, with locations include the following:
Two nuclear power plants would be at the location of Java island and another one on the island of Madura, with economic considerations of scale from the island of Java. Level of demand for electricity reaches 23 Gwe Java island, or about 70% of national electricity needs. With the projected economic growth of at least 7%, then expected to reach 70 Gwe in 2027, so it is necessary to increase capacity additions 50GWe. In addition, another consideration is the readiness of the infrastructure for electricity distribution have awakened over the years. The plan for the Java island nuclear power plant will be built twin (twin unit).
While for the rest would be built in East Kalimantan and Bangka-Belitung islands. For the NPP to support the network of East Kalimantan island of Kalimantan (Borneo), while the NPP Bangka-Belitung to be included in Sumatra and the ASEAN Grid network.
Funding
Development of NPP in Indonesia is the high cost required, but in operation, nuclear power plants require little cost, much lower than conventional power plants. This is because, having nuclear fuel energy content is much larger than the existing fossil fuel today. The low operational costs, would make nuclear power more competitive than other power plants, as well as more stable against changes in fuel prices.
Construction of twin unit 2x1.000 MWe nuclear power plants with a capacity of 3.6 to 4 billion USD needed. That requires a guarantee from the Indonesian government and other incentives to attract investment.
The Indonesian government provides funding alternatives include:
1. Government Loan
2. Government Export Credit
3. Private investment or Consortium
By looking at the financial condition of Government, Indonesia needs private consortia, both nationally and internationally, however, remain open to the possibility of inter-governmental cooperation in building nuclear power plants. Already there are some countries who are interested to invest in nuclear power plant in Indonesia, including France, Korea, Japan and Russia.(*)
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