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International Seminar on “Environmental Management and Development in Indonesia” Serpong, 8 September 2015 Center for Research on Energy Policy INSTITUT TEKNOLOGI BANDUNG Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems Dr. Retno Gumilang Dewi

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Page 1: Monitoring Aspect of MRV System for GHG Emission of ... · (a) Installation of equipment to monitor energy system performance in industry in order to identify the potential of energy

International Seminar on “Environmental Management and Development in Indonesia”

Serpong, 8 September 2015

Center for Research on Energy PolicyINSTITUT TEKNOLOGI BANDUNG

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

Dr. Retno Gumilang Dewi

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1pg.

Indonesia Climate Change Mitigation Action Plan

In response to climate change issues, the GoI in 2009 announced “non binding commitment”to reduce GHG emissions 26% below the baseline by 2020 with domestic budget and furtherup to 41% with international support. To achieve the target, GoI developed mitigation actionsplan that is published as National GHG Mitigation Action Plan (RAN GRK)

Emission level target

GH

G E

mis

sio

ns

leve

l

BaU (Baseline)

2005 2020 2050

Reduction target ‘non-binding’ commitment (26% or 41%) in 2020

In-line with Low CarbonDevelopment Paths

Sector Emission Reduction* Total

(41 %)26% 15%

Forestry & Peatland

0.672 0.367 1.039

Waste 0.048 0.030 0.078

Agriculture 0.008 0.003 0.011

Industry 0.001 0.004 0.005

Energy 0.038 0.018 0.056

Total 0.767 0.422 1.189

RAN-GRK Target

*Giga Ton CO2e

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

Background

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Impacts of Existing Mitigation Actions

2pg.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

In total, there were > 50 mitigation action plans under RAN GRK (Perpres 61/2011),only 45 activities have been implemented during 2010-2012. Not all these mitigationactivities reported the impacts of mitigations, the reported GHG emission reductionduring 2010-2012 was about 0.04129 Gt CO2-e or 0.01376 Gt CO2-e annually.

Other 27 mitigations actions implemented outside Perpres 61/2011, 4 activities aresupported NAMAs and the rest 23 activities are voluntary (i.e. Proklim, CompanySocial Responsibility, Green Building, etc.). Very few of these activities reported theirmitigation impacts, the reported emission reduction was about 0.00509 Gt CO2-e(during 2010-2012) or 0.00170 Gt CO2e annually.

It should be noted, all of those reported emission reduction have not been MRV-ed.

It is important to monitor the achievement of all mitigation implementations (RAN GRK and non-PerPres61/2011) and evaluate whether they could meet: - non-binding commitment of emission reduction (26% or 41% in 2020) and- emission reduction contribution beyond 2020 (i.e. 29% in 2030 under INDC)through developing a good MRV System in the country.

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Measurement, Reporting, and Verification (MRV)

3pg.

Within the context of climate change issues, MRV stand for Measurement/Monitoring, Reporting and Verification of GHG emission.

The term MRV is originated from UNFCCC Decision 1/CP.13-2007, Bali Action Plan: Paragraph 1 (b)(ii) of the Decision underlines the need for “…. nationally appropriate mitigation actions by developing country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity-building, in a measurable, reportable and verifiable manner.

“Measurable, Reportable, Verifiable” are now commonly abbreviated as MRV.

As indicated by the Decision, the enabling support (technology, financing and capacity-building) for mitigation actions is also the object of MRV.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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4pg.

Ministerial Regulation No.15 /2013

To gather mitigation action information that is accurate, transparent, consistent and credible

• During planning and implementation of action • To determine GHG emission level before and after mitigation• To monitor the achievement of mitigation action

Measurement

• To document the achievement of mitigation action.• As reference document in verification process (by MRV commission).

Reporting

• To ensure that all information stated in the report is correct • Verification is carried out by verifier appointed by “project participant”

(the party that is responsible in mitigation action)• Requirement of verifier: Not involved in mitigation action implementation; Hold competency certificate (as mitigation action verifier).

Verification

M

R

V

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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The Needs for MRV

5pg.

MRV lately become important issue within the context of NAMAs (NationallyAppropriate Mitigation Actions), i.e. climate change mitigation actions that are inline with country development objective and in support to sustainabledevelopment.

The issue of MRV is still relevant and an important component in the comingglobal efforts in climate change mitigations organized/managed under INDC(Intended Nationally Determine Contribution).

In order to have credible claim of the GHG emission reduction achieved byimplementing all mitigation efforts, including the INDC, the reduction has to bemeasured, reported, and verified (MRV-ed).

Those are the rationale that we have to continue researches that support to thedevelopment of MRV system in energy sectors, particularly energy in industry.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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Significant increase of energy demand in transport and industry sector

6pg.

Current National Energy Supply-Demand

Million ToE

FINAL ENERGY DEMAND By Type of Fuel

source: Pusdatin—ESDM

0

50

100

150

200

250

2000 2002 2004 2006 2008 2010 2012

BIOFUEL

BIOMASS

ELECTRICITY

LPG

GAS

COAL

OIL

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

Million Toe

Primary Energy Supply Mix

0

50

100

150

200

250

2000 2002 2004 2006 2008 2010 2012

Biomass Industrial

Biomass

Geothermal

Hydro

Crude Oil &Product

Gas & Product

Coal

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7pg.

Energy consumption is dominated by fossil fuels (Coal) source: Pusdatin—ESDM

Energy Consumption in Industry Sector

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

MToe

0

20

40

60

80

100

120

140

160

180

200

2000 2002 2004 2006 2008 2010 2012

ACM

Commerce

Residential

Transport

industri

National Final Energy Demand By Sector

MToe

0

5

10

15

20

25

30

35

40

45

50

2000 2002 2004 2006 2008 2010 2012

Electricity

IDO+ADO

Kerosene

Natural Gas

Briquette

Coal

Biomass (solidbiomass)

Final Energy Demand in Industry Sector

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GHG emissions of Energy Sector

Coal is the major emission source; 2nd major source is oil combustion

Coal use: power generation & industry; Oil use: transport and building

End-use sector: one-half of the direct combustion emissions are from fuel burning in industry; emissions from power generation is accounted by building (60%) and industry (40%) sectors.

Industry is important for implementing mitigation activities

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Low Carbon Development (LCD) in Energy Sector

9pg.

• LCD is Long Term Vision of Economic Development in a Low-Carbon Way. Challenge forachieving LCD is now in a global mainstream and there is no turning back in this trend.

GH

G e

mis

sio

ns

per

cap

ita

Time

Developing Countries

Leapfrog-development

Indonesia (2005)0.48 ton C/capita

World Target (2050):

0.44 ton C/capita

Indonesia BAU (2050): 3.3 ton C/capita

International (2005), Ton C/capita-Japan, UK, Germany 2.5 -US 5.5; Canada 4.2 -India 0.3; China 0,6 -World (average) 1.0 – 1.1

De-Carbonization

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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-100%

-50%

0%

50%

100%

2020 2030 2040 2050

Fossil Energy CO2Emissions per Energy

Final Energy per GDP

GDP per capita

Population

2,5

8,3

0,0 5,0 10,0

2050

2010

Energy intensity of GDP (MJ/$)

50

871

0 500 1000

2050

2010

Electricity emission intensity gCO2/kWh

34%

12%

0% 10% 20% 30% 40%

2050

2010

Electrification at end use (%)

The pillars of decarbonization

Pillars:• Efficiency measures• Electrification of end-use• Decarbonization of el. power

Decomposition of decarbonization

1

0pg.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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144184 197

161

56

152

176202

214

211

111

121

123118

109

25

27

2828

27

0

100

200

300

400

500

600

2010 2020 2030 2040 2050

Mt CO2

Buildings

Transportation

Industry

Electricity

Forecast of CO2 emission by sector

1

1pg.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

871

621

401

211

500

100

200

300

400

500

600

700

800

900

1.000

0

200

400

600

800

1.000

1.200

2010 2020 2030 2040 2050

gCO2/kWhTWh

Biofuel

Geothermal

Biomass

Solar

Wind

Hydro

Nuclear

Natural gas w/ CCS

Natural gas w/o CCS

Oil w/ CCs

Oil

Coal w/ CCS

Coal w/o CCS

Carbon intensity(gCO2/kWh)

Electricity generation and carbon intensity

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1

2pg.

0

50

100

150

200

250

300

350

BA

U

DEC

BA

U

DEC

BA

U

DEC

BA

U

DEC

2010 2020 2030 2040 2050

Mill

ion

TO

E Electricity

Biofuels

Biomass

Oil Fuels

Nat Gas

Coal

3,7 3,63,4

3,12,8

3,73,4

3,0

2,3

1,6

0,0

1,0

2,0

3,0

4,0

2010 2020 2030 2040 2050

Ton

CO

2/T

OE

BAU

DEC

Forecast of energy demand from industry and emission intensity

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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1

3pg.

MRV Development for Industrial Energy System

ITB – NIES Research on The Development of MRV System

CurrentFocus area : industry sector Activities : (a) Installation of equipment to monitor energy system performance in industry in order to identify

the potential of energy efficiencies, develop baseline emission and identify the corresponding GHG emission reduction potential. The efficiency may be obtained through technological intervention at an industry or through integration of energy system between industries in a location (i.e. industrial park).

(b) Capacity building for climate change mitigations in industry and the associated MRV system(c) Modeling of Low Carbon Development incorporating mitigation actions in industry sector at local

level and link to the national level

Previous ITB - NIES Research CollaborationAIM Modeling Research: ITB-IPB-NIES-Kyoto University - Extended Snapshot (ExSS) - Scope: National and Sub-National (DKI Jakarta)- End Use Model - Power, Industry, Transport, Commercial, Residential - Scope: National- CGE - National - for evaluating impact of national action plan (RAN) - Scope: National

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1

4pg.

Framework of Modeling Approach

BOTTOM-UP AND INTEGRATED APPROACH

PLANT

INDUSTRIAL PARK

CITY

PROVINCE

NATIONAL

NON-INDUSTRIAL:• POWER PLANT• TRANSPORT• COMMERCIAL• RESIDENTIAL• LAND-BASED

Notes: existing models consider the object as non spatial (national as well as sub-national)

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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JAKARTA

BOGOR

BANDUNG

INDUSTRIAL PARK SELECTIONEXISTING CITY-WIDE SIMULATION: JAKARTA

Bekasi & Cikarang

Cilegon

1

5pg.

INDONESIA INDUSTRIAL PARKSTOTAL: 232 Sites (71 outside Java)

West Java: 110 Sites

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

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1

6pg.

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

Cikarang Typical Industries

Jababeka CikarangDelta Silicon CikarangEJIP (East Jakarta Ind. Park)Hyundai CikarangMM22100 Cikarang

Plastic PackagingMetal ProductionAutomotive Spare-part Electronic ComponentChemical Product (Detergent, Chemical for Lab.)Paper Packaging

Karawang/Bekasi Typical Industries

Surya CiptaAutomotive Food and Beverages

Banten Typical Industries

Krakatau Industrial Estate Cilegon (KIEC)

Petrochemical Electricity

West Java Industrial Estates and Their Typical Industries

Outside Industrial Estate:• Automotive (Honda, Toyota, Suzuki, Mitsubishi, etc.) • Paper Industry (Pindodeli – Karawang)• Textile raw material: Indo-bharat Rayon, Viscose Rayon, Indorama, etc.)• Textile industry in Bandung Regency (industrial cluster)

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1

7pg.

Example 1: Energy Efficiency and Conservation Potential in Textile Industry

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems

cooling and temperature control systems 39%

Mixing/Opening

7% Carding8%Combing

5%Drawing/Roving

4%

Ring Spinning

30%Finishing

7%

Air Conditioning Plant

39%

Fiber Making & Spinning

Knitting & Weaving

Dyeing & Finishing

Sewing & Garment TOTAL

% Energy Use 8% 8% 80% 4% 100%

EE&C Potential for each type industryEE&C Potential for

Textile Industry

2015 2.50% 2.50% 12% 0% 10%

2025 20% 20% 35% 0% 30%

Energy use in the textile industry:• electricity for: machinery, cooling and temperature

control systems, lighting, office equipment, etc.; • oil for boilers (generate steam); • LPG, coal, and natural gas.

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1

8pg.

Challenge / Opportunities

ITB – NIES research is not limited to the current scope/activity but also will include:

1. Monitoring system as part of MRV System

2. Energy audit to identify EE&C Measures

3. Identify symbiosis possibility between industries and surrounding establishments (other industries/consumers)

4. Promoting the results of currents research and relevant ideas to other industries (individual as well as to industrial park or region)

5. Integrating the plant level information for developing LCD Model in industrial park, city, regional (province) and national level

We welcome new ideas/initiatives from lecturers, researchers, industries, etc. in this collaborative research

Thank You

[email protected]@crep.itb.ac.id

Monitoring Aspect of MRV System for GHG Emission of Industrial Energy Systems