Promoting Industrial Energy Efficiency through System Optimization and Energy Management Standards in Indonesia Project Dates: January 2012 - December 2017
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PROJECT OBJECTIVE

The Energy Management System (EnMS) standard, ISO 50001, specifies the requirements for an organization to establish, implement, maintain, and improve an energy management system, enabling systematic achievement of continual improvement in energy performance, energy efficiency, and energy conservation. The Standard was adopted in Indonesia in 2012. In Systems Optimization (SO), the first point of entry in identifying energy efficiency options is to look at the system as a whole, rather than at the individual system components (such as motors, pumps, air compressor or boilers) separately. Since 2000, Indonesia transitioned from a robust energy exporter to an importing nation that, for the first time, is concerned with growing domestic demand, and rising cost of energy imports and production. National energy efficiency and conservation is an obligation under the 2007 Energy Law and has been affected through government regulation (2009) and presidential instruction (2011). Energy resources users and final energy users that use energy equivalent to or more than 6,000 ton of oil equivalent annually are obliged to implement energy conservation through energy management. The Ministry of Energy and Mineral Resources (MEMR) has also drafted a National Energy Conservation Plan and recently the Government, through its National Standardization Agency, adopted ISO 50001 as Indonesian national standard for energy management systems.

 

PROJECT DESCRIPTION

Despite these encouraging efforts initiated by the government, much works needs to be done in the field, in particular in the area of company energy management (following the EnMS) and Systems Optimization (SO). For example, at the facility/company level, there is often no built-in energy management policy or strategy that integrates energy issues in the existing management structure. Energy-related issues are taken on an ad-hoc basis and do not allow a comprehensive and integrated approach that ensures sustainable energy cost reduction and that simultaneously improves facility productivity. For this reason, the United Nations Industrial Development Organization (UNIDO) has initiated the project “Promoting Industrial Energy Efficiency through System Optimization and Energy Management Standards” in cooperation with the Indonesian government entities Ministry of Energy and Mineral Resources (MEMR), Ministry of Industry (MOI) and the National Standardization Agency (BSN). The project has received financial support from the Global Environment Facility (GEF) of USD 2,180,380 and co-financing from Indonesian government partners and the private sector of USD 14,175,000. The objective of the project is “To promote industrial energy efficiency through system optimization approach and introduction of ISO energy management standards”.


SECTORS OR AREAS OF WORK
  1. Energy efficiency

Region/Location

BUDGET

USD 2,180,380

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. UNIDO - The United Nations Industrial Development Organization
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
BUDGET

USD 2,180,380

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. UNIDO - The United Nations Industrial Development Organization
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE