role of renewable energy in … of renewable energy in accelerating economic development in...

ROLE OF RENEWABLE ENERGY IN ACCELERATING ECONOMIC

DEVELOPMENT IN INDONESIA-With special reference to OTEC

Kamaruddin Abdullah

Laboratory of Solar Energy Conversion Technology Mechanical Engineering Department

Darma Persada University e-mail:Kamaruddin@pasca.unsada.ac.id

International Seminar on Ocean Energy, Saga

University 26-27 March 2012

Economic corridor to accelerate national development (Acceleration and Expansion of Indonesian Economic

Development 2011-2025)

1/16/2012 Kamaruddin A,:Lecture Materials, for

Manajemen Teknik Sistem, UGM 2

“Production center for processing of raw materials and for

national energy storage”

“Production center for mining industries and

national energy storage”

'‘Production center for agro-industries, estate

crops and fisheries”

“Driver of national and services/commercial

industries “Entrance gates for

tourism and national food storage ''

“Processing of abundant natural resources ,and developent center for

human welfare "

OTEC: 222 GW electricity (Ikegami et;al,2009)

Thousand B

OE

Indonesia oil production histories and Future

Projection (pessimistic scenario)

Domestic demand Production scenario (pessimistic)

PROJECTION OF ENERGY DEMAND

IN INDONESIA TOWARD 2025

Renewable energy

Chevron, Darajat,West Jaava

Biomass power plant

Biomass Type

2012/9/13 15

Various Biomass Fuel Consumption using Full Condensing Turbine

1000

900

800

700

600

500

400

300

200

100

0

FU

EL

CO

NS

UM

PT

ION

( T

ON

/24

H )

5 10 15 20

GENERATING OUTPUT ( MW )

720

247

477

706

938

167

322

477

633

150

290

429

571

EFB

Bagasse

Wood

Husk

Bagasse

Wood

Husk

EFB

360

Eucafuel Co. Ltd.

Oceanic Thermal Energy Conversion (Pierre Cannon,

Sumon Nandy Amy Nandy,December 2009)

• OTEC utilizes the ocean’s 20ºC natural thermal gradient between the warm surface water and the cold deep sea water to drive a Rankine Cycle

• OTEC utilizes the world’s largest solar radiation collector - the ocean. The ocean contains enough energy power all of the world’s electrical needs.

12/18/2009 17 OTEC African Deployment

HEAT EXCHANGERS

Hybrid Cycle (Ikegami, et al., 2009)

PRABUDDHA BANSAL - CH03B0253B025

ARAVIND G - CH03B048

NAVANEETHA KRISHNAN N CH03B053

SHASHANK NARAYAN - CH03B059

210kW OC-OTEC Experimental Plant (1993-1998) in Hawaii

OTEC R&D

Environmental Aspects Negatives:

• Fish eggs and larvae entrained, destroyed

• Sterilization of land by land based plants

• Floating plants – navigational hazard

• Entrainment and impingement of organisms.

• Chlorine used for preventing biofouling – hazardous

• Metal pieces entrained – affects marine orgs.

• Mixing of warm and cold sea water

• OTEC is yet untested on large scale over a long period of time

Commercial benefits of OTEC

• Helps produce fuels such as hydrogen, ammonia, and methanol

• Produces baseload electrical energy • Produces desalinated water for industrial, agricultural, and

residential uses • Provides air-conditioning for buildings • Provides moderate-temperature refrigeration • Has significant potential to provide clean, cost-effective

electricity for the future. • Specially beneficial for small islands as they can become self-

sufficient

• Promotes competitiveness and international trade

• Enhances energy independence and energy security

• Promotes international sociopolitical stability

• Has potential to mitigate greenhouse gas emissions resulting from burning fossil fuels.

OTEC R&D history in India 1980 - Conceptual studies on OTEC plants initiated.

1984 - preliminary design for a 1 MW (gross) closed Rankine Cycle

floating plant was prepared by IITM

1993 – NIOT formed

1997 – Government proposed the establishment of the 1 MW plant

NIOT signed a memorandum of understanding with Saga

University in Japan for the joint development of the plant near

the port of Tuticorin

Goals:

The objective is to demonstrate the OTEC plant for one year, after

which it could be moved to the Andaman & Nicobar Islands for power

generation. NIOT’s plan is to build 10-25 MW shore-mounted power

plants in due course by scaling-up the 1 MW test plant, and possibly a

100 MW range of commercial plants thereafter.

OTEC resource within EEZ of India

ECONOMIC CONSIDERATIONS • OTEC needs high investment

• Efficiency only 3% - low energy density – large heat transfer equipment

therefore more cost

Nominal Size,

MW

TYPE Scenario Potential Sites

1 Land-Based OC-

OTEC with 2nd Stage

for Additional Water

Production.

Diesel:

$45/barrel

Water: $1.6/m3

Present Situation in

Some Small Island

States.

10 Same as Above. Fuel Oil:

$30/barrel

Water: $0.9/ m3

U.S. Pacific Insular

Areas and other

Island Nations.

50 Land-Based Hybrid

CC-OTEC with 2nd

Stage.

Fuel Oil:

$50/barrel

Water: $0.4/ m3

Or

Fuel Oil:

$30/barrel

Water: $0.8/ m3

Hawaii, Puerto Rico

If fuel or water cost

doubles.

50 Land-Based CC-

OTEC

Fuel Oil:

$40/barrel

Same as Above.

100 CC-OTEC Plantship Fuel Oil:

$20/barrel

Numerous sites

fixed rate of 10%, 20 year loan, and OTEC plant availability of only 80%. Operation and maintenance

costs corresponding to approximately 1.5% of the capital cost are used.

Offshore Distance,

km

Capital Cost, $/kW COE, $/kWh

10 4200 0.07

50 5000 0.08

100 6000 0.10

200 8100 0.13

300 10200 0.17

400 12300 0.22

Cost Estimates for 100 MW CC-OTEC Plantship

(COE for 10 % Fixed Rate, 20 years, Annual Operation &

Maintenance 1% percent of Capital Cost).

13/09/2012 Kamaruddin A,dkk..: KIPNAS, X, LIPI 34

Road map of Solar Thermal Incl. OTEC

OTEC Research in Indonesia

• Donny Achiruddin, Mamuaya and Ikegami, 2009.Survey to potential OTEC sites at Padang, West Sumatera, Manado, North Sulawesi, and North Bali

• Lab scale OTEC, Suhartono and Aep S. Uyun.

Manado

0 – 200 m

200 – 500 m

500 – 1,000 m

> 1,000 m

28°C 8°C

dT > 20°C

North Sulawesi, Manado (Ikegami, Donny, Kamaruddin,2009)

Depth in meter Distance in meter

- 200 400

- 500 1,500

- 1,000 3,000

X Manado

0 – 200 m

200 – 500 m

500 – 1,000 m

> 1,000 m

BALI

Depth in meter Distance in meter

- 200 1,000

- 500 2,000

- 1,000 5,500

Potentiasl site of OTEC, Padang, West Sumatera

Padang

0 – 200 m 200 – 500 m 500 – 1,000 m > 1,000 m

Depth in meter Distance in meter

- 200 8,000

- 500 10,000

- 1,000 17,000

Sea temperature distribution in some potential OTEC site in Indonesia Ikegami, et all.2009)

Seawater Temperature Profiles

-1200

-1000

-800

-600

-400

-200

0

0 10 20 30 40

Temperature (Celsius)

De

pth

(m

)

Northtern of Papua

Northern of

Sulawesi

Southern of Java

Western of Sumatra

OTEC Research

• Putu Yoga Perdana( ITS,2010)

– Based on minimum temperature difference of 20 oC and availability of condensing water at 600 m sea depth, the potential location of OTEC in Indonesia would be at:Simeulue NAD, (Aceh) North sea of Bali and at Banda sea.

Sea water temperature profile in potential OTEC sites (P. Yoga Perdana,ITS,2010)

max=0.0819

Sea water temperature profile (P.Y. Perdana, 2010)

th=Carnot cycle efficiency

Tw, sea surface temperature (oK)

Tc, cold temperature at 600 m

depth (oK)

max=0.0788

max=0.0786

Ministerial Regulation No. 31/2009 on Small and Medium scale

Power Generation utilizing Renewable Energy: The regulation

stated that the State owned power company (PT. PLN) has the

obligation to purchase electricity from small- and medium-scale RE

power plants which are developed by cooperatives, community

chests or business entities (Power plant capacity ≤ 10 MW).

The price is regulated for medium and low voltage grid connections,

as well as the interconnection system, determined by f-factor.

Based purchasing price is 656/kWh x F, if connected to medium

voltage grid (20 KVA), and 1004/kWh x F, if connected to low

voltage grid (380/220 KVA. The F value for the grid system is 1.0 in

Java and Bali, 1.2 in Sumatra, 1.3 in Kalimantan/Sulawesi and 1.5

in Papua/Nusa Tenggara (Eastern part of Indonesia)

Distributed Power Generation <10 MW

FINANCING RENEWABLE ENERGY

• Sources of funding for renewable energy projects:

• National development government budget: This is currently the main source of finance forrenewable energy. After approval by the Development Planning Agency (BAPPENAS), the budget is allocated to government agencies such as the Ministry of Energy and Mineral Resources,

• Ministry of Health, Ministry of East Indonesia Development and the Agency of Technology

• Assessment and Application (BPPT) to finance renewable projects.

• Regional government budget: Since Indonesia’s decentralization process started, and especially since the issuance of Law No. 22/1999 on Regional Governance and Law No. 25/1999 on the Fiscal Balance between the Central Government and the Regions, the funding for provincial and district governments has significantly increased. This has increased the available budget for financing RE projects in the regions.

Financing Renewable Energy

• Grants/technical assistance or loans from bilateral and multilateral donors: These funds are channeled through BAPPENAS. Project proposals prepared by government agencies are sent to BAPPENAS which evaluates the proposals and tries to identify a donor to fund the proposal.

• Because there is a high political priority for activities related to global climate change, more funds have become available in recent years for financing renewable energy projects.

• State-owned electricity company (PLN): The company allocated a small portion of their annual budget to develop renewable energy. According to the regulation, PLN in position to purchase electricity from renewable energy independent power producers.

• Local entrepreneurs: Local entrepreneurs, who see business prospects from renewable energy projects, are a limited but fast growing source of funding.

Finanacing renewable energy

• Since 2005, the Ministry of Energy and Mineral Resources (MEMR) has accelerated the rural electrification program using renewable energy resources. In 2006, the GoI allocated 398.9 billion rupiah ($44 million) to install micro-hydro power plants, wind power, centralized PVs plants and solar home systems (SHS).

• The next year, the allocation was about 300 billion rupiah ($33 million) for similar projects. In 2009, the budget allocation for renewable energy for rural electrification projects increased three times that of the 2006 allocation and reached 1,000 billion rupiah ($100 million). In 2010, the Indonesian government planned to distribute about 2,000 billion rupiah ($200 million) to fund renewable based rural electrification project through the special allocation fund scheme.