Demand Side Management Options in the Household Sector through Lighting Efficiency Improvement for Java-Madura-Bali Islands in Indonesia

Abstract

In 2006, the industrial sector became the biggest electricity consumer in Indonesia, followed by the household sector. The industrial sector consumed approximately 43% of total electricity followed by the household sector with 35%. By using the Long-range Energy Alternatives Planning system (LEAP) model for electricity projection from 2006 to 2025 for the Java-Madura-Bali (Jamali) islands, it was found that the household sector would become the biggest consumer by 2025, consuming about 42%. This study applied the demand side management (DSM) options to reduce electricity demand in the household sector by implementing lighting efficiency improvements namely: (1) replacing 40W incandescent lamps with 8W compact fluorescent lamps (CFL), (2) replacing 60W incandescent lamps with 12W CFL and (3) replacing 100W incandescent lamp with 20W CFL. With lighting efficiency improvements, the electricity demand would be reduced by 5.2% in 2025. For electricity generation capacity, it would reduce the electricity generation capacity by 3.2 GW or 5% of total generation capacity of the Business as Usual (BAU) scenario in 2025 and also reduce emissions by about 15.4 million tonnes of CO₂ equivalent, accounting for a reduction of 5.8% compared to the BAU scenario. The DSM costs are analyzed in order to achieve electricity demand reduction target. In addition, the externality costs avoided by DSM application are also calculated to find a reasonable incentive for it.