Monday, May 11, 2015

Solar Energy in Indonesia: Waking up the Sleeping Giant


            During the 20th century, the earth’s average temperature has increased about one degree Fahrenheit, according to NASA. This may sound very trivial—why a degree matters so much? Environmentally speaking, unfortunately, it signifies a gradual change in climate. The hazard of global warming is now the current environmental formidable issue confronted by our society. Ring et al. (2012) stated that it is largely due to the greenhouse effect—a phenomenon in which certain gases e.g. carbon dioxide (CO2) and nitroux oxide (NOx) are accumulated in the atmosphere, hence blocking the heat radiation from the earth. The emission of these gases is the result of human civilizations, particularly the process of fossil fuels combustion (NRC, 2010). The vast use of fossil fuels, including oil, natural gas, and petroleum as the primary energy source dates back since the era of the Industrial Revolution in the 18th century (Clark, 2007). Its versatility has yielded the society an opportunity to an advanced improvement in numerous sectors: from industrial, electricity generation to transportation. Today, however, the economic growth and uncontrollable number of human population has forced the society to exploit fossil fuels, including oil, natural gas, and petroleum, to meet the growing energy demands; or in other words, our society is being heavily dependent on fossil fuels. Fossil fuels, in fact, are non-renewable and unsustainable resources. Besides taking its toll on the environment, fossil fuels, which were formed through biological process of organic matters such as flora and fauna remains for more than million years ago (Chmielewski, 1999), are limited. Even though it is hard to precisely estimate the time length of fossil fuels to last due to various aforementioned factors, Doherty (2012) predicted that in approximately 46 years, all the oil in the earth will have been completely used up. These factors, combined with the rising price of increasing price of fossil fuels and the fact that the world’s energy consumption is predicted to be 35% higher in 2035 (BP, 2015), have prompted many countries, including Indonesia, to mull over the outlook for alternative energy resources. In Indonesia, various resources of renewable energy such as geothermal, hydroelectric power, and solar energy, solar power specifically, have been offered as the options. To date, only geothermal and hydroelectric power systems have been carried out; while the latter i.e. solar power has not been widely utilized, even though it is reckoned to be equally potential. Therefore, in order to solve the problem of renewable energy source and to prevent the climate change from worsening, the government should promote and encourage the development of solar power in Indonesia.
            Solar power provides clean, environmental-friendly energy resources to the society by harnessing the sunlight and transforming it into electricity. With about 885 million terawatt hours (TWh) reaching the surface of the earth every year, which is 6200 times more than energy consumed by humans in 2008, it is believed to be the most inexhaustible energy resource available (IEA, 2011; 2014b). In general, solar power is divided into two systems: direct by using photovoltaics (PV), or indirect by using concentrated solar power (CSP). CSP systems use mirrors or lenses to focus a large area of sunlight into a small beam; in this regard, CSP is more suitable for wide areas with higher temperature e.g. desserts (Philibert, 2005). Photovoltaics, meanwhile, is best applied in urban and rural environments. It is built of solar cells which connected together to form a solar panel to collect sunlight and convert it into electricity. Although it was initiated for small-scale installations, it is possible to generate enough electricity by grouping solar panels in arrays to set up self-sustained farm or house. Installing solar PV also contribute to less-polluted air as it does not emit CO2 and NOX. Numerous studies have found out that fossil fuels contribute 40 percent of carbon dioxide (CO2) emissions, 23 percent of the nation’s nitrogen oxide (NOX) emissions, and 67 percent of sulfur dioxide (SO2) emissions in the atmosphere (Grover, 2007).  These emissions contribute to the formation of smog and haze, and are associated with a wide range of health problems; particularly respiratory problems e.g. heart attacks, chronic lung, asthma, and pneumonia. Installing solar PV may decrease the risk of suffering from these health problems (Grover, 2007).
Solar PV creates an energy independency and alternative to the countries which apply it. Palz (2013) explained that solar PV have been trending globally ever since its first mass production in Germany due to its bright prospect. As of 2014, there are more than 100 countries have employed solar PV as their alternative energy source. China emerges as the top installer, followed by the powerhouses, Japan and U.S., consecutively (IEA, 2014). International Energy Agency in 2014 also reported that around 177 GW (gigawatt) of now installed globally, 10 times higher than in 2008. Following the worldwide installations of solar PV, 19 countries in the world are now capable to supply 1% of their yearly demand of electricity with PV. Hunt (2015) also added that Germany is now capable to supply about 7% of their domestic electricity demands, and about 1% from 18.400 TWh of global electricity demands. In the end of 2060, solar energy could supply a third of global energy demand with low level of CO2 emission (IEA, 2011). Indonesia, however, has just started its move to establish power solar systems. In 2014, state-owned electricity firm, PLN has just established a plan of adding 620 PV megawatts (MW) to the existing 42.77 MW by 2020, losing from the country next door, Thailand, who now has reached 1 GW PV capacity (Global Business Guide, 2014).
Entrenched in equator between Indian and Pacific Ocean, Indonesia is blessed with year-round sunshine; it is basically a sleeping giant of solar energy source. Nonetheless, as an archipelago, covering all areas with electricity has long been the most challenging task for the government (Global Business Guide Indonesia, 2013). According to the data from Ministry of Energy and Mineral Resources of Republic of Indonesia in 2014, about 23.53% of households in Indonesia are not yet electrified, and most of them are located in remote areas. Our government has been relying on the fossil energy to fulfill the electricity demands of 546 TWh; coal makes up around 40% of total, followed by oil (29%), gas (21%), and renewables (10%) (Indonesia Infrastructure Report, 2010). Meanwhile, based on the data from APEC’s Peer Review on Low Carbon Energy Policies in Indonesia, Indonesia’s fossil fuels reserves only consist of 4 billion barrels of oil, 3 trillion cubic meters of natural gas, and 5.5 billion tons of coal in 2011; and our domestic capability to produce oil is very limited. Taken together with our reliance on fossil energy reaching 94,97% and the average growth rate of energy consumption is 7% per year (Ministry of Energy and Mineral Resources of Republic of Indonesia, 2012), it is impossible to rely solely on fossil fuels. The National Energy Policy adopted by the House of Representatives in January 2014, furthermore, predicted that renewable sources shall supply at least 23% of Indonesia’s energy needs in 2025 and 31% by 2050, up from around 6%. Therefore, considering the geographical location of Indonesia and the dire need of renewable resources, solar panels may be the best option to be carried out.
Some people claim that solar PV system is too costly. The average cost for installing solar panels on a house in U.S. is around $10,000 or around 130 million rupiah. The idea is no longer relevant. Bazilian et al., (2013) stated that solar panels are very durable; the panels systems can last for 25 to 50 years. The only cost required is the installation cost; not to mention that the solar panels only need very little maintenance. Moreover, according to Bloomberg New Energy Finance as of 2008, the global cost per watt of PV has fallen by 60%. To attract people to use solar panels in Indonesia, however, the government needs to offer incentives, namely feed-in tariffs, in order to encourage the PV industry to provide solar PV for commercial use. This method offers cost-based compensation to renewable energy producers, by providing price standard and long-term contracts that help energy investments financially (Couture et al., 2010). If people use and buy more panels, local PV manufacturers can increase production to meet demand, the cost and price will drop over the years. Therefore, instead of spending the money on fossil energy-related system, the development of inexhaustible and clean solar energy technologies will be beneficial in the long run (IEA, 2011).
Others also claim that solar PV will be useless at nights and cloudy days. This opinion is not entirely true. Solar PV do work if they are exposed to intense amount of sunlight, however, it does not necessarily mean they would not work at night. Most solar PV have batteries installed within. During the day, battery banks store energy as the night energy back-up. In Indonesia, for instance, streetlights with solar panels are common. Solar panels absorb and save the solar energy throughout the day in order to be used to light street lamps during the night. The same goes without saying to cloudy days. It is true that solar PV can work optimally with intense amount of sunlight; and that in cloudy days, only a slight amount of sunlight can pass through the clouds to reach the solar PV hence the efficiency of solar panels decreases; however, it does not mean that it does not work at all. As a tropical country with lavish sunshine, cloudy days do not really affect the performance of the solar PV.
All in all, solar PV, as a renewable energy resource, offer many advantages than fossil fuel-based energy. It is inexhaustible, cleaner, and environmental-friendly energy resource. It will increase countries’ dependence on greener resource, enhance sustainability, reduce pollution, and keep fossil fuel prices lower (IEA, 2011). Therefore, I strongly suggest that the government encourage the state-owned electricity company (PLN) and local manufacturers to promote this low-carbon energy system for a better Indonesia.
Annisa Lista Sari
Final Project



References

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