d1 04 plan readiness of pln to exploit or to purchase biomass e28093 based electricity moch sofyan

8/14/2019 d1 04 Plan Readiness of Pln to Exploit or to Purchase Biomass e28093 Based Electricity Moch Sofyan

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PLAN & READINESS OF PLNTO EXPLOIT OR TO PURCHASE

BIOMASS BASED ELECTRICITY

Mochamad SofyanHead of New & Renewable Energy Division

INDONESIA GERMAN WORKSHOPInstitut Teknologi Bandung

Bandung , 26th of September 2011


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AGENDA

.

AGENDA

CONCLUSION

GENERAL POLI Y.

B. THE UTILISATION OF BIOMASS TO GENERATE ELECTRICITY

2

AGENDA

2


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Gas

Geothermal

Hydro

LNG

HSD MFO

Coal

General Policy: Conservation and Diversification of primary Energy by utilization of renewable energy

President Decree no 5/2006, contribution of renewable energy by 2025 : 17%.

PERMEN ESDM (Regulation of Ministry of Energy and Mineral Resources) no 31/2009

concerning energy price and obligation of PLN to purchase an electricity generated from

small scale renewable energy ( under 10 MW ).

PLN Plan and Policy ( RUPTL 2010 -2019 ): The growth of electricity demand by 9,2 % annually which supplied by various energy

resources

Electrification ratio grows from 68 % in 2010 to be 91 % by 2019.

The program to reduce oil consumption from 19 % to 3 % by 2015.

With the dominant of coal power plant development (58 %), the contribution of renewable

energy will increase from 12 % ( 2010 ) to be 19 % ( 2019 ).

The utillisation of biomass energy has been planned in the RUPTL ( general plan for

electricity supply).

PLN considered not to have biomass power plant, but treated as an Excess Power or IPP

power plant , due to feedstock supply issues.3

Policy on Energy Development


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Indonesia Energy Policies to Reduce GHG emission

Presidential Decree No 5/2006 regarding National Energy Policy

Presidential Decree No. 4/2010 that assigns PLN to accelerate development of powergeneration plants using renewable energy, coal and gas. The renewable energy portion is

40% of the total capacity listed in this program

Oil

20 %

Oil

20 %

Gas 30 %Gas 30 %

Coal 33 %

N&RE

17 %

Bio-fuel 5 %

Geothermal 5 %

Biomass, Nuclear,

Hydro, Solar Power,

Wind Power 5 %

Coal Liquefaction 2 %

Target of National Energy Mix 2025

(Based on Presidential Regulation No. 5/2006)


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Planning Policy

5

Policy for Generation Expansion Planning

Reserve margin for power systems outside Java-Bali is allowed to be higherthan 40% to accommodate uncertainties in the completion of power plant

projects.

Site location for new power plant is determined by taking into account the

availability of local primary energy sources and considering the regional

balance principle to minimise investment of transmissions.

Development of renewable energy, especially geothermal, is not decided by

least-cost principle, but by considering its expected development period.

Fuel-oil power plants are only planned to meet peak demand, and other type

of peaking plants such as pumped storage hydro plants, reservoir hydro plants

and gas-fired turbine power plants are also planned.

The development of electricity supply in remote areas, the borders islands

and other outer islands, especially in the eastern part of Indonesian

archipelago, would be prioritized to utilize locally available renewable energy


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Realisation and Projection of Electricity Demand 2010-2019 (GWh)

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Realization Projection

Indonesia electricity demand is predicted to grow at average of 9.2% annually (Java-Bali 8.97%,

West Indonesia 10.2% dan East Indonesia 10.6%)

327

TWh

252

TWh

54 TWh

28 TWh

133

TWh

104

TWh20 TWh

10 TWh


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7

Renewable Energy ( RE ) Development Target( RUPTL PLN 2010-2019)

Development Program( up to 2019 ):

Hydro :

Additional Cap: 5.990 MW

Geothermal :

Addtional Cap: 5.550 MW

Others Small scale RE:

Additional Cap: 1.700 MW

( Including Biomass : 374 MW )

PLN will focus mainly on mini

hydro , solar and biomassdevelopment.

6% 6% 5% 5% 5% 4% 4% 4% 4% 4%

6% 6% 6% 9%

12% 13% 13% 13% 13% 13%

46%

54% 52% 51%

51% 54% 56%

57% 56% 58%

25%

25% 28%29%

26% 24% 22% 19% 20%

18%

0%

0%

3%2% 2% 2% 2% 3% 4% 4%

3%

3%2.0%

1% 0% 0% 0% 0% 0% 0%

13%

7% 4.8% 3% 3% 2% 2% 2% 2% 2%

0% 0% 0% 0% 0% 0% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 20 15 2016 2017 20 18 2019

Hydro Geothermal Nuklir Batubara Gas LNG MFO HSD Pumped Storage

RE contribution on National Energy Fuel Mixedi will increased from 12 % (2010) to 19 %, Coal

Thermal still dominant by 58 % ( 2019 )


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AGENDA

.

AGENDA

PENUTUP

GENERAL POLI Y AND POTENTIAL RESOUR ES.

B. RE DEVELOPMENT PLAN AND THE UTILISATION OF BIOMASS

AGENDA

8


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ADDITIONAL PLANT CAPACITYCAPACITY

(INCL. GREEN & NEW ENERGYDEVELOPMENT)

Total Capacity of Green & New Energy PP to be built in the period is 11,540 MW(total capacity of Geothermal PPs, Hydro Electric PPs-HEPP, Mini HEPPs, and Small

Scale Green & New Energy PP)

57% of the total capacity of Green Energy PP will be expected from IPPs

Tahun 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

PLN

Coal STPP 3,291 4,090 834 1,479 2,203 110 1,200 200 7 3,007 16,421

Comb. Cy. PP 194 820 393 350 240 - 700 1,500 2,250 - 6,447Gas TPP 105 - 225 50 - 65 235 800 1,065 1,280 3,825

Diesel PP 11 14 12 48 44 42 34 16 33 50 303

Geo. PP 10 55 78 143 203 20 23 3 20 20 575

Mini HEPP 14 6 6 14 8 4 5 8 1 - 66

HEPP - - 10 300 1,000 65 103 715 1,311 818 4,321

Total PLN 3,625 4,985 1,558 2,384 3,698 306 2,299 3,242 4,686 5,175 31,958

IPP -

Coal STPP 26 891 2,649 1,703 2,212 2,160 2,550 1,930 1,410 745 16,276

Comb. Cy. PP 290 110 30 - 120 - - - - - 550

Gas TPP 10 10 80 - - - - - - - 100

Diesel PP - 22 - - - - - - - - 22

Geo. PP - 3 178 857 2,450 50 330 392 510 645 5,415

Mini HEPP 25 31 91 42 6 2 1 1 1 - 201

HEPP 180 195 - - 157 90 310 30 - - 962

Total IPP 531 1,262 3,028 2,601 4,945 2,302 3,191 2,353 1,921 1,390 23,525

PLN+IPP

Coal STPP 3,317 4,981 3,483 3,182 4,415 2,270 3,750 2,130 1,417 3,752 32,697

Comb. Cy. PP 484 930 423 350 360 - 700 1,500 2,250 - 6,997

Gas TPP 115 10 305 50 - 65 235 800 1,065 1,280 3,925

Diesel PP 11 36 12 48 44 42 34 16 33 50 325

Geo. PP 10 58 256 1,000 2,653 70 353 395 530 665 5,990

Mini-Hydro PP 39 38 98 56 13 6 6 9 2 - 267

Hydro Electric PP 180 195 10 300 1,157 155 413 745 1,311 818 5,283

Total PLN+IPP 4,156 6,248 4,586 4,985 8,643 2,608 5,490 5,596 6,607 6,565 55,484

SMALL SCALE

GREEN & NEW

ENERGY PP

58 57 90 155 191 208 217 222 242 263 1,703


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SMALL SCALE RE DEVELOPMENT PLAN

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TOTAL1 PLTMH MW 0

2 PLT Surya MWp 2 5 5 10 15 30 30 30 30 30 187

3 PLT Bayu MW 0 5 5 8 8 8 10 10 10 10 74

4 PLT Biomass MW 4 10 10 10 10 25 25 25 25 40 184

5 PLT Kelautan MW 0.0 0.0 0.2 0.3 0.5 1.0 1.5 2.0 2.0 2.5 10

6 PLT Bio-Fuel MW 0.0 0.5 2 2 2 3 5 5 10 10 40

7 PLT Gas-Batubara MW 12 15 15 15 15 25 25 25 30 30 207

MW 18 36 37 45 51 92 97 97 107 123 702

( RUPTL TAHUN 2010 - 2019 )

No Pembangkit - EBT StnTAHUN

PENGEMBANGAN PEMBANGKIT LISTRIK EBT - ENERGI ALTERNATIF

TOTAL

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL

1 PLTMH MW

2 PLT Surya MWp 20 40 50 60 70 70 75 75 80 80 620

3 PLT Angin MW 5 15 15 15 15 15 20 20 25 25 170

4 PLT Biomass MW 16 33 35 35 35 40 40 45 45 50 374

5 PLT Kelautan MW - - 0 0 1 1 2 2 2 3 10

6 PLT Bio-Fuel MW - 1 2 2 2 3 5 5 10 10 40

7 PLT Gas-Batubara MW 12 56 60 80 80 90 90 95 95 100 758

MW 53 145 162 192 203 219 232 242 257 268 1,972TOTAL

PENGEMBANGAN PEMBANGKIT LISTRIK EBT - ENERGI ALTERNATIF( USULAN REVISI RUPTL TAHUN 2011 - 2020 )

No Pembangkit - EBT StnTAHUN


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PALM WASTE BIOMASS POTENTIAL ( MW )

( State Own Plantation Company)

Sahabat Setia untuk Kemajuan11

2010 2011 2012 2013 2014

1 PTPN I 0.59 0.16 0.16 0.05 0.13

2 PTPN II 9.49 8.37 5.64 4.45 3.51

3 PTPN III 13.26 13.65 14.06 14.48 14.92

4 PTPN IV 11.54 14.98 12.84 16.05 16.05

5 PTPN V 21.86 18.59 17.11 14.49 13.29

6 PTPN VI 14.33 16.49 16.41 16.24 15.85

7 PTPN VII 3.91 3.56 2.71 2.24 2.24

8 PTPN VIII 0.62 0.75 0.75 0.75 0.75

9 PTPN XIII 3.09 3.34 3.66 3.92 4.32

10 PTPN XIV 1.82 2.24 2.65 2.90 2.90

11 RNI 4.83 5.24 5.37 5.74 6.5812 Jumlah 85.34 87.38 81.38 81.32 80.55

13 Tot.Inti+Plasma+Phk I II 249.10 265.23 268.25 285.24 287.19

Proyeksi Besarnya Daya (MW) BUMN Perkebunan 2009-2014

No UraianAsumsi (MW) - Rata rata


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MSW (PLTSampah) Potential (Proposed by Developers)

12

No Lokasi MW

1 Bekasi, Bantargebang 26

2 Bandung 10

3 Surabaya, Benowo 10

4 Bali, Suwung 9

Total 55


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The Current Biomass Power Plant Contracted with PLN ( 38 MW )

No Nama Perusahaan Nama Pembangkit COD Jenis kontrak Lokasi Biomass

Type

Kapasitas

Kontrak

(MW)

Harga

Rp/KWh

1 PT Listrindo Kencana PLTBiomassa

Listrindo Kencana

2006 IPP Bangka Palm waste 5

766

2 PT Growth Sumatra PLTBiomassa

Growth Sumatra 1

2006 Excess power Sumatera

Utara

Palm waste 6 785.4

3 PT Navigat Organic PLTSampah

Suwung

2008 Excess power Bali MSW 2

800

4 PT Navigat Organic PLTSampah Bantar

Gebang

2009 Excess power Bekasi MSW 4

800

5 PT Belitung Energy PLTBiomassa

Belitung Energy

2010 IPP Belitung Palm waste 7

787

6 PT Growth Sumatra PLTBiomassa

Growth Sumatra 2

2010 Excess power Sumatera

Utara

Palm waste 9 785.4

7 PT Pelita Agung PLTBiomassaDumai

2010 Excess power Riau Palm waste 5 787

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Data Perusahaan Penjual Tenaga Listrik dari Biomassakepada PT.PLN (Persero)


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Biomass Power Plant in Progress of Contract with PLN

( 21 MW )

1 PT Victorindo PLTBiomassa

Padang Lawas

2011

progress

Excess

power

Sumatera

Utara

Palm

waste

5 787

2 PT Nubika Jaya PLTBiomassa

Pinang

2011

progress

Excess

power

Sumatera

Utara

Palm

waste

6 787.2

3 PT Growth Asia PLTBiomassa

Growth

Sumatra 3

2011

progress

Excess

power

Sumatera

Utara

Palm

waste

10 787.2

14

No Nama Perusahaan Nama Pembangkit COD Jenis kontrak Lokasi Biomass

Type

Kapasitas

Kontrak

(MW)

Harga Rp/KWh


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Key Challenges / Constraints

1.

Legal aspect / regulation :

Permits

Pricing

Contract

2.Uncertainty on long term fuel supply of biomass feed stock

Continuity of long term supply

3.

Lending Aspect

Contract for Excess Power limited to 3 year

Uncertainties on long term fuel / feed price

4. Environmental and Social Aspect


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Regulation for Feed-in Tariffs ( FIT )

MoEMR Decree 31/2009:

For RE with 10 MW Maximum installed capacity

Tariff is set as: - 7 c USD /kWh (connected to medium voltage line)

- 10.8 c USD /kwh (connected to low voltage line)

- Incentive factor of 1.1 1.5 for outside Java-Bali

Tariff higher than setting tariff : B to B mechanism and subject to GOI

approval

MoEMR Decree 32/2009 :

Ceiling tariff set as 9.7 c USD/kWh for Geothermal

Propossed FIT for Biomass :Estimated Tariff propossed: 10 11 cent USD/kwh

Incentive factor based on region


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The Barriers of Biomass Energy Development

There is no standard price of biomass fuel. The price tends tofollows oil price issue.

The continuity of supply is questionable as the feedstock producer

tend to export their product ( esp. Palm waste) for higher offer.

Feedstock producer do not want to be tightened with long term

contract .

The lack of interest of farmers to plant energy crops due to Income

from growing energy crops may not be competitive than growing

other crops.

Unpredictable crops failure that lead to uncertain financial return

for farmers.

High capital cost of advanced biomass technology

Social objection for MSW power plant17


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Opportunities of Biomass Energy Developers

Unlike in Sumatra and Kalimantan, there are only a few biomass

plant developers in Eastern Indonesia. These provide opportunities

for new players to invest.

Low electrification ratio by less than 60% in Eastern Indonesia

presents interesting chance for developers. There will be new Feed in Tarif for electricity generated from

biomass, which is around 10 11 cent USD/ kWh.

The risk of sustainability of feedstock supply can be minimized

with the availability of various type of biomass

Availability of unproductive land that can be utilize as a cultivatedwood for wood pellets.

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AGENDA

.

AGENDA

CONCLUSION

GENERAL POLICY AND POTENTIAL RESOURCES.

B. THE UTILISATION OF BIOMASS TO GENERATE ELECTRICITY

AGENDA

19


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CONCLUSION

As the electricity demand growing rapidly, PLN is ready to

purchase electricity generated from Biomass.

Considering that the average selling electricity price to

customers is Rp 700,00 per kWh, the new proposed base

Feed in Tariff for biomass energy by Rp 950,- is sufficient

to provide profit for energy developers as well as to avoid

subsidy burden for government.

The export of raw materials biomass should be limited by

introducing the fiscal policy to stabilize domestic price.

Financial incentive is required by all stake holders in order

to accelerate the biomass plant growth.

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21

erima Kasiherima Kasih

d1 04 plan readiness of pln to exploit or to purchase biomass e28093 based electricity moch sofyan

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