DEVELOPMENT PLAN OF HYDRO POWER PROJECTS

Jakarta, 31st August 2012

Presented by :

NASRI SEBAYANG DIRECTOR OF CONSTRUCTION PT PLN (PERSERO)

Sumatera 4.408,4 MW

Java 4.594,5 MW

NTT 15 MW

Kalimantan 431 MW

Sulawesi 3239,6 MW

Molluca 156,4 MW

Papua & West Papua 49 MW

HYDROPOWER POTENTIAL IDENTIFICATION

Hydro Power Potential Study (1983) : 75.000 MW - 1249

Location

Review Hydro Power Potential Study (1999) 3rd Screening : 21.480 MW -167 Location

Hydropower Master Plan Study ( 2011 ) : 12.893,9 MW – 89

Location

PROMISING SCHEME TO BE DEVELOPED IN FIXED TIME HORIZON

HYDROPOWER and MINI HYDROPOWER IN OPERATION

REGION PLN IPP TOTAL TOTAL CAP (kW) PLANT CAP (kW) PLANT CAP (kW)

West Indonesia 10 855,060 1 180.000 11 1,035,060 East Indonesia 7 217,380 7 217,380 Java - Bali 19 2,335,220 19 2,335,220 GRAND TOTAL 36 3,407,660 1 180.000 37 3,587,660

REGION PLN IPP

TOTAL TOTAL CAP (kW) PLANT CAP (kW) PLANT CAP (kW)

West Indonesia 34 15,582 7 21,095 41 36,677 East Indonesia 37 43,430 8 26,340 45 69,770 Java - Bali 36 72,768 8 2,055 44 74,823 GRAND TOTAL 107 131,780 23 49,490 130 181,270

• Hydro Power is the clean and renewable future energy

sources of Indonesia • Hydro Power energy potential is the National natural

resources and shall be developed to its optimum utilization • Development of Hidro Power is planned and will be

progressed intensively due to its potential, technology development, and economic viability.

• Fuel-oil and gas turbine Power Plants are planned specifically to meet peak demand and its future development will be considered taking into account other type of peaking plants such as Pumped Storage Power Plants, reservoir type Power Plants and ROR type with “daily pondage” .

• Coal and Geothermal Power Plantis still dominant and as their operation characteristics, it will operate as a base loader .

• Considering the above condition, hydro power development should be prioritized as a peaking power in order to optimized the energy and project viability.

Policy on Hydro Power Development

HYDROPOWER DEVELOPMENT PLAN ( 2011-2020 )

0 0

95 77 62

493 405

132

0 0 29

254

78 93 43

252

145

235 296

119

9 4 68

18

257

1102

37 0

450

968

0

200

400

600

800

1000

1200

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MW West Indonesia East Indonesia Java - Bali

COD / Capacity ( MW )

REGION 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GRAND TOTAL

West Indonesia 0 0 95 77 62 493 405 132 0 0 1264

East Indonesia 29 254 78 93 43 252 145 235 296 119 1544

Java - Bali 9 4 68 18 257 1102 37 0 450 968 2914

GRAND TOTAL 38 258 241 188 362 1847 587 367 746 1087 5722

MINI HYDROPOWER DEVELOPMENT PLAN ( 2011-2016 )

COD / Capacity ( MW )

REGION 2011 2012 2013 2014 2015 2016 GRAND TOTAL

West Indonesia 7.7 9.2 47.7 152.7 151.8 28.6 397.6

East Indonesia 17.1 26.9 93.4 59.0 55.4 12.0 263.8

Java - Bali 0 3.6 57.6 41.1 104.8 43.1 250.2

GRAND TOTAL 24.8 39.7 198.7 252.8 312.0 83.7 911.6

7,7 9,2

47,7

152,7 151,8

28,6 17,1

26,9

93,4

59,0 55,4

12,0 0,0 3,6

57,6

41,1

104,8

43,1

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

2011 2012 2013 2014 2015 2016

MW West Indonesia East Indonesia Java - Bali

HYDROPOWER DEVELOPMENT MASTERPLAN

– August 2011 – Masterplan Study of Hydropower Development in Indonesia (Nippon-Koei) :

• Highly promising Hydropower schemes can be developed until 2027 is 12.319 MW (no scheme in protected forest, resettlement ± 2.500 house holds)

• About 6633 MW consist of Large and Minihydro is already planned in RUPTL to be operated fully on 2020

– Promising Hydropower schemes which already had a Prefeasibility Study or pass through the social and environmental screening can be developed to replace fuel fossil power plant in the system, i.e : Hydropower with reservoir (include Pumped Storage) or “daily pondage” may replace peaking thermal power plant.

– PLN will develop around 60%, the other 40% will be developed by IPP.

HYDROPOWER PUMP STORAGE POWER PLANT

To meet the electricity demand during the peak load in Java-Bali system, a total of 2,440 MW Pump Storage Power Plant has been planned for the next ten years, consist of:

UPPER CISOKAN P/S : 1,040 MW (Pre-construction Stage, expected COD : 2016)

MATENGGENG P/S : 900 MW (Design Stage, expected COD : 2019/2020) GRINDULU P/S : 500 MW

(expected COD : 2020) 75,5 m height of Upper Dam and 98 m height of Lower Dam will be

build using RCC for Upper Cisokan P/S. 4 units of adjustable speed pump turbine and generator will be install in the underground Power House.

Pump Storage with capacity of more than 500 MW in Sumatera and 800 MW sea water Pump Storage in East Java has been identified for future study.

DEVELOPMENT OF MINI HYDROPOWER BY IPP

Private investment interest in the development of MHPP is very high, and currently PPA already signed for 438MW

Number Installed Capacity (kW) Number Installed Capacity (kW)West Indonesia 69 410,031

Operation 7 21,095 7 21,095 Construction 10 71,868 17 92,963 PPA 25 176,200 42 269,163 PPA Process 10 39,900 52 309,063 Proposal 17 100,968 69 410,031

East Indonesia 52 176,970 Operation 8 26,340 8 26,340 Construction 19 62,600 27 88,940 PPA 5 12,550 32 101,490 PPA Process 13 52,180 45 153,670 Proposal 7 23,300 52 176,970

Java-Bali 76 250,669 Operation 8 2,055 8 2,055 Construction 12 26,210 20 28,265 PPA 12 38,970 32 67,235 PPA Process 26 107,494 58 174,729 Proposal 18 75,940 76 250,669

Total Indonesia 197 837,670 Total Operation 23 49,490 23 49,490 Total Construction 41 160,678 64 210,168 Total PPA 42 227,720 106 437,888 Total PPA Process 49 199,574 155 637,462 Total Proposal 42 200,208 197 837,670

IPP CumulativeRegion

SUMMARY OF MHPP DEVELOPMENT BY IPPAugust 2012

DEVELOPMENT OF MINI HYDROPOWER BY PLN

Number Installed Capacity (kW) Number Installed Capacity (kW)West Indonesia 34 15,582

Operation 34 15,582 34 15,582 Construction 0 - 34 15,582 Study 0 - 34 15,582

East Indonesia 72 131,385 Operation 37 43,430 37 43,430 Construction 9 14,400 46 57,830 Study 26 73,555 72 131,385

Java-Bali 36 72,768 Operation 36 72,768 36 72,768 Construction 0 - 36 72,768 Study 0 - 36 72,768

Total Indonesia 142 219,735 Total Operation 107 131,780 107 131,780 Total Construction 9 14,400 116 146,180 Total Study 26 73,555 142 219,735

SUMMARY OF MHPP DEVELOPMENT BY PLNAugust 2012

Region PLN Cumulative

CHALLENGES IN HEPP/MHPP DEVELOPMENT

Permit / regulation : The number of permits were numerous and lengthy processing time Duplication on location permit issuance Different licensing process between local governments and synchronization with the

regulations of Central Government Synchronization of licensing regulation vs IPP procurement process

Optimization of HEPP/MHPP development scale considering the available water resources

Mismatch between the potential and the demand in the electrical system Socio – Economic and Environmental issues, especially related to land

acquisition and resettlement and Lender requirements Increasing the national capability/capacity in developing HEPP/MHPP

(Consultant, Contractor, Domestic Industrial/ Manufacturing, Domestic Funding, etc.)

The need for large investment and long time project implementation Providing attractive cooperative schemes to encourage participation of

private investor in Hydro Power Development as a Peaking Power Plant.

Terima Kasih