What is Smart Grid?

Smart Grid is an electricity network that can integrate actions or activity from all

users, starting from the generator and consument with the purpose of efficient,

sustainable, and safe electricity supply. (IEC 2010) 

With Smart Grid implementation, expected to increase new and renewable

energy utilization thereby reducing carbon emissions. However, Smart Grid is not

only concerning technology problem but also concerning in national energy

policy---price policy, saving fossil energy, diversification, and energy conservation.

As stated by Syamsir Abdu—a member of the stakeholder of the national energy

interest council on the National Smart Grid seminar that runs by Puslitbangtek of

Electrtification, New and Renewable Energy, and Energy Conservation

(Puslitangtek KEBTKE) Badan Litbang ESDM—Ministry of Energy and Mineral

Resources.

There is a huge gap between production and the need for gas, oil, and coal

commodity making DEN recommend to reduce oil and gas exports. The purposed

policy is to use it as development capital. Indonesia is rich in various new and

renewable energy potential, but the utilization of this huge potential is still low.

Thereby with Smart Grid, we can optimize the diversity of our new energy

resources. 

The electrification ratio in 2013 is 80.51%. The uneven distribution between West

to East Indonesia. Even in Papua, the ratio is 36,41%. With using Smart Grid on

distributed generation can highly push the electrification ratio. People’s access to

energy is still difficult. Some people pay twenty thousand rupiahs for BBM, where

the price is higher than the international price. 

Current energy subsidies are supposed to return again to the new energy section

which is the new and renewable energy development. National Energy Council

supported and push Smart Grid utilization which is a Smart Energy base to

guarantee of energy using that efficient, economical, and sustainable.