PENGEMBANGAN PEMBANGKIT LISTRIK BIOMAS

SKALA KECIL DI INDONESIA

Indonesia Clean Energy Development (ICED) Project

Hanny J Berchmans

5 Desember 2012

Program Pengembangan Energi Bersih Indonesia (ICED)

• Adalah program yang dibiayai oleh USAID

• Jangka waktu 3.5 tahun (Maret 2011 – September 2014)

• Target propinsi: terbuka seluruh wilayah Indonesia

dengan fokus Aceh, Sumatra Utara dan Riau

• Pengembangan Proyek Energi Terbarukan yang dibantu:

Pembangkit listrik tenaga air, biomas, biogas, angin, solar

pv/hybird skala kecil (≤10 MW)

• Pengembangan Proyek Energi Efisiensi yang dibantu: di

sektor Industri, Bangunan dan Transportasi

• Hibah (grant) untuk pengembangan komunitas daerah

yang memanfaatkan energi terbarukan

ICED’s approach in developing the Clean Energy

Sector in Indonesia

3Archive number

Clean Energy Sectors / Market

Government / Policy Makers

PLN (Utilities Company)

Private Sectors

Policy & Coordination

Enabling a conducive

policy environment to

develop CE projects

1

Capacity Building &

Public Outreach

Developed capacity to

all stakeholders &

increase CE awareness

3

Project Development

Provide technical assistance to all

stakeholders in developing CE projects

2

4 million tons CO2e avoided

120 MW installed capacity

At least $120 million public and private funding

leveraged

At least 20 small and medium sized projects

implemented

1.2 million persons with increased access to clean

energy

$250 million in reduced subsidy due to tariff increase

and replacement of diesel fuel

ICED Target

RE Small Power market is shaped by stakeholders

4

Business Policy

Financing

– 26 Hydro Developers

– 4 Biogas Developers

– 2 Biomass Developers

– 1 EE Consultant

– 3 Corporation

– Ministry Energy

– Ministry Agriculture

– Bappenas

– PLN HQ & Regional

– Provincial & Regency

Gov

– Bank Indonesia

– 3 Commercial Banks

– 2 Syariah Banks

– 5 Non Bank Financial

Institutions

ICED Partners in Small Power

Market Observations

Limited number of successful operating

grid-connected projects

Projects are characterized as small but

complex in terms of site, resource and

technology

Growing interest from both domestic

and foreign sources of financing

Challenges in raising equity and with

bank loan collateral requirements

Regulatory uncertainty (Feed in Tariffs)

stalling development activities

Greater capacity needed in developers,

banks/FIs, PLN, Provincial/Regional

government

0

50

100

150

200

250

300

350

400

450

500

Biomas(Agri

Waste)

Biogas(Agri

Waste)

Biomas(NonAgri

Waste)

Biogas(NonAgri

Waste)

Indonesia

Thailand

Malaysia

Singapura

Pilipina

Vietnam

0

5

10

15

20

25

30

35

40

45

50

AgriculturalBiomass

WoodyBiomass

Indonesia

Thailand

Malaysia

Pilipina

Vietnam

Source: USAID-ICED

Potensi Biomas di ASEAN

(dalam Juta Ton)

Kapasitas Terpasang

PLTB & PLTBG*

* Pembangkit Listrik yang tersambung ke Jaringan Listrik Nasional

Current Status Biomass Power Plant

10

ANAEROBIC

DIGESTER

54

STEAM

TURBINE

3

MSW

Number of Power Plant

Connected to PLN Grid

Excess Power IPP

Number of Power Plant in

Planning for 2012-2014

Total 72

MW

Total 782

MW

Excess Power IPP Internal Use

12

ANAEROBIC

DIGESTER

STEAM

TURBINE MSW

399.5 392

ICED project inventory status by provinces as of

September 2012

OTHER

PROVINCE

16

ACEH

65

NORTH

SUMATERA

26

7

RIAU

ICED Project Inventory

By Provinces

(Number of Projects)

Total 114

Projects

Other Tech Biogas / Biomass Hydro

ICED Project Inventory

By Provinces

(In Megawatt Equivalent)

73.2

11.8

543.7

171.0

Hydro Biogas / Biomass Other Tech

Total 799.2

Megawatt

OTHER

PROVINCE

ACEH NORTH

SUMATERA

RIAU

Indonesia has opportunities and challenges in

developing small scale RE Projects

1

Indonesia Condition

– Abundance of renewable energy

resources (rivers, ag. waste, solar etc)

– Electricity capacity shortages, unserved

communities

– Rising cost of oil, natural gas and coal

– Government targets for RE, EE and

GHG emissions reduction

CE Development Opportunities

– Established feed in tariff rate

– PLN required to “off take” electricity

– GOI direct appointment to developer

– Standard Power Purchase Agreement

– Reduces subsidy to PLN by reducing

use of diesel

– Banks, FIs and private equity financing

CE Development Challenges

– Lack of Project Financing

– Undercapitalized developers/sponsors

with limited track record;

– Limited operating projects as examples

– Limited domestic capability in equipment

and services

ICED Approach

– Improve policy framework at national

and regional level

– Improve PPAs & other agreements

– Link financing sources with high quality

projects and companies

– Show case success stories, share

lessons learned

Tantangan didalam pengembangan PLTB & PLTBG

Barriers for Developments

Feedstock

Financial & markets

Infrastructure conditions

Regulatory Risks

Technology

1. BIOMASS FEED IN TARIFF

ISSUE

2. INCENTIVES ISSUE

3. PPA ISSUE

4. ELECTRICITY SUBSIDY

5. ETC.

1. LIMITED PLN GRID

2. LIMITED ROAD ACCESS

3. WATER AVAILIBILITY

4. LAND AVAILIBILITY

5. ETC.

1. LIMITED/NO PROJECT

FINANCE

2. HIGH RISK & INVESTMENT

COST

3. ETC.

1. INCOSISTENT QUALITY

2. CYLCICAL SUPPLY

3. COMPETITION WITH BIOMATERIAL USED

(COMPOST, ACTIVE CARBON, dll)

4. ETC.

1. UNPROVEN TECHNOLOGY

2. LACK OF CAPACITY

3. LACK OF SUCCESS STORY

4. LACK OF INFORMATION

5. HIGHER MAINTENANCE COST

6. ETC.

Characteristics of Biogas Power Plants

(Anaerobic Digester Type)

Key Characteristics:

• Use Reciprocating Gas Engines

• Can be used as CHP system

• Complexity: moderate

• Operational aspect: moderate

• Typical size < 3 MWe

• Technology status: Mature/Proven

• Reliability: High

• Fuel flexibility: Poor

Characteristics of Biomass Power Plants

(Direct Combustion Type)

Biom

ass

Steam

Electr

icity

Boiler

Dust

Bag

Ash

Source:

Takuma

Characteristic Value

Fuel flexibility High

Technology Status Mature/Proven

Typical Size > 5 MWe except for

cogeneration > 1 MWe

Reliability High

Complexity Moderate

Operational aspect Relatively easy

Thermal Efficiency Small (20% to 27%), but can be

as CHP* system (~ 80%)

Lifetime 5 – 15 years

* Combined Heat and Power

Abu pembakaran tankos meleleh dan membentuk Clinker/Lapisan Kerak

Lapisan kerak pada grate akan mengakibatkan terhentinya proses pembakaran dan menurunnya efisiensi boiler

Grate boiler yang bersih Pembentukan Clinker pada grate boiler

• Titik leleh rendah + ruang bakar yang kurang bersih pembentukan Clinker

• Clinker terbentuk di permukaan grate sehingga mengganggu proses pembakaran. Akibatnya, pengoperasian boiler harus diberhentikan berulang kali untuk keperluan servis dan pembersihan.

• Availibilitas sistem pembangkit akan menurun karena adanya waktu pemeliharaan yang lebih panjang

Source : USAID-ICED

Problem umum didalam pembakaran Tandan kosong kelapa sawit tanpa pretreatment)

Pabrik Kelapa Sawit

Cangkang

g Tandan Kosong

Moisture : 65 – 69%; Calorific Value : 18 MJ/kg

(0% m.c.); 4.3 MJ/kg (67% m.c.)

Serat Untuk

keperluan

lain

Untuk Sumber Energi

Transportasi

Boiler / CHP Plant

Shredding/Chipping

Screw Pressing / Drying

Press into bales / pellets

Tengkulak

Tandan

Kosong

Pretreatment Tandan Kosong

Mengurangi ukuran dan kandungan air

Pengurangan Kandungan Air < 40%

23% berat Tandan Buah Segar

Transpotasi

LISTRIK

Pretreatment Tandan kosong kelapa sawit sebelum digunakan sebagai bahan bakar

• When project site is at a

distance from the biomass

source, Project Sponsor

may consider the use of fuel

pre-treatment technology to

optimize transportation cost

• Transporting feedstock with

relatively low energy or high

moisture content will be

very inefficient

• Pre-treatment at the palm-

oil miller or rice miller site

will be required: shredding,

pressing, and pelletization

Characteristics of Biomass Power Plants

(Gasification Type)

Key Characteristics:

• Use Reciprocating Gas Engines

• Can be used as CHP system

• High Complexity

• Operational aspect: Difficult

• Typical size < 3 MWe

• Technology status: early commercial

• Reliability: Poor to reasonable

• High Efficiency: ~ 47%

• Fuel flexibility: moderate

Biomass Gasification Power Projects in Indonesia

No Project Location Year

Operation

Capacity

(kVA)

Status

Note

1 PLTB Gasifikasi

EBTKE

Kab. Pelalawan-Riau 2009 110 Stop Pilot project

2 PLTB Gasifikasi

EBTKE

Kab. Indragiri Hulu-Riau

2010 150 Stop Pilot project

3 PLTB Gasifikasi

EBTKE

Kab. Siak-Riau

2010 150 Stop Pilot Project

4 PT. Navigat Organic Bali 2011 2000 In operation IPP, MSW

5 PT. Navigat Organic Bekasi-Jabar 2011 8000 In operation IPP, MSW

6 PT. ICPV Sei Dadap-North

Sumatera

2013 2000 In planning Captive, Palm

waste

7 IIEE & BNI Tabanan-Bali 2014 40 In planning Pilot project,

Internal use

Biomass Gasification Power Research & Development

in B2TE - BPP Teknologi

Fixed-bed gasification system pilot plant

50 kWthFluidized-bed

gasification system pilot

plant

Challenges in Gasification Technology Implementation

Gasification is complex and sensitive process

Handling residues (ash & tar) is time consuming and dirty work. Reliability of gas cleaning system

is often very low.

The physical and chemical properties of producer gas such as energy content, gas composition

and impurities vary time to time

Gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel

preparation is an important cause of technical problems with gasifiers.

Installation is complex and require substantial investment for low capacity

Several manufacturers claim that gasifiers can be operated on all kinds of biomass. But, due to

physical and chemical properties variation in the biomass fuel many researches indicate that

gasifier is specifically designed for a particular type of fuel. Lack of technology development and manufacture within the country. Some demonstration plants

have been scaled up from university pilot projects but they have failed due to problems such as

tar condensation, insufficient gas flow rates and gas properties, higher ash content, etc.

Lack skill in operation & maintenance of plants is a major hurdle in fast penetration of biomass

gasification

No proper feasibility study

Summary of small Biomas/Biogas power application

Technology

Prime mover

type

Applications

Capital

Cost

O & M

cost

Effi-

ciency

Ramping

rate

Reliability Operational

flexibility

Complexity

Biomass

(direct

combustion)

Steam

Turbine

Low –

Medium

Medium Low Slow** High High Moderate

Biomass

(Gasification)

Reciprocating

engines

Medium Medium High Fast*** Low -

Moderate

Low High

Biogas (AD

digester)

Reciprocating

Engines, Gas

turbine

Medium

- High

Medium Low Fast***

High Moderate Moderate

**Steam turbine plants 1 -5%/min

*** Gas Engines 20%/min, Gas Turbine 20%/min

Risk Management in the development of Biomass/Biogas power projects

Identified Issues Mitigation

Fuel Supply Availability, energy content, Physical and

chemical characteristics, collection,

transportation, cost

Long term biomass contract supply: quality, cost, quantity and delivery

Technology Reliability, Capital Investment and O&M costs,

Space requirement

Follow best practice, engineering standard and use the most cost

effective technology

Environment & Social Water Availability for cooling and feed

Hydrology

Topography

Geology (including earth quake)

Technically safe site and ensure environment parameters are

respected i.e. air, waste water quality, noise. Public acceptance

Environment Analysis (UKL, UPL)

Project Developer Experience, equity Experienced management or consortium with experienced partners.

Provide enough equity or other source of income to manage risk.

Location Fuels vs. electricity distribution network Ensure that the location is ideal considering the fuel availability and

electricity load. Secure site

Legal Many permits : business, environment,

construction.

Ensure all permits are made available

Construction Delay Time, resource scheduling and project management. insurance

Cost Overrun Over budget Accurate feasibility study, Optimum engineering design and project

management, insurance

Operation & Maintenance Unexpected down time, materials used during

construction, equipment reliability

Implement best practice in operation and maintenance, follow design

specifications, insurance

Off taker Payment default Good profit and bankable off taker

Biomass & Biogas Business Model

• Biomass waste

• Liquid organic

waste (POME)

• Municipal waste

Resources

Private/BUMN/

public

Resources Owner

Resources

Owner

Third Party

Project Developer

Developers Mechanism

BOO

Own Project

BOT

Biomass & Biogas Business Structure

Commercial Project Development Stages

Project

Initiation

Feasibility

Study PPA Financing Constructi

on COD

Max 1 Year 1-2 Years

• Small-scale renewable energy Independent Power Project (IPP) may take 3 to 5 years from the project

initiation to commercial operation date (COD), during which Project Sponsor would have to identify project

opportunity, conduct feasibility study, obtain all relevant permits, enter into a Power Purchase Agreement

(PPA) with PLN as the traditional off-taker, reach financial closure, and implement the construction work.

• Under the MEMR Regulation No. 14/2012, Project Sponsor may enter into a PPA with PLN through a direct

appointment process, using a standard renewable energy Power Purchase Agreement (PPA) for a fixed

term (period) and at power purchase prices set by regulated feed in tariff (FIT) under MEMR Regulation No.

4/2012.

• While purchase price is fixed, it can be levelized or “front loaded” per guidance from PLN Director Decree.

• The PPA process has been standardized, and includes interaction with PLN and Ministry of Energy and

Mineral Resources

7-8 months 6-12months

P22

WHAT CAN ICED DO?

• PROJECT DEVELOPMENT COMPONENT:

Assisting its partners in realize the potential of small Biomass/Biogas power:

Identifying potential projects, reviewing feasibility studies, training in

assessing project viability and due diligence

GIS mapping of resources, projects, substations and 20 kV network

Maintaining an inventory of proposed RE projects under development,

sharing with interested banks and investors

Supporting the development of standardized PPA(s) and

interconnection procedures, guidelines and agreements

Facilitating meeting between ICED partner RE developers and

Financiers

Calculating the contribution of RE projects in terms of capacity,

investment, subsidy reduction, access, and GHG emissions

Limited cost sharing for RE Feasibility Study, Interconnection Study

WHAT CAN ICED DO?

• SMALL GRANT COMPONENT:

Development of pico/micro RE pilot project for community

development

OPPORTUNITIES:

Cost sharing on the development of micro scale biomass

gasification pilot projects for community development with

Financiers/EBTKE-ESDM/Small & Medium Business Enterprise

and University

AMOUNT:

Maximum grant: ~ 100,000 USD/proposal.

WHAT ICED HAS DONE?

• PROJECT DEVELOPMENT:

1. Provide Technical Assistance (Value Engineering) to 55 RE projects.

2. Capacity Building for 5 Banks and 4 Financial Institutions

3. Develop Pre-FS for Sinar Mas Biogas Projects

4. Develop Pre-FS for Kabupaten Kampar Biogas and Biogas Projects

5. Study tour to Thailand Biogas & Biomass power projects for key

stakeholders

6. Supporting PLN on the development of standardized PPA(s) and

interconnection procedures, guidelines and agreements

7. Development of GIS layer for 20 kV of PLN Grid in Aceh, North Sumatera

and Aceh. GIS inventory of Palm Oil Mills for Kabupaten Kampar

8. And more……

• SMALL GRANT COMPONENT:

1. Cost sharing with CSR BNI on the development of a micro scale biomass

gasification power project in Bali.

2. Green building certification in commercial sector with GBCI

For more information, contact:

Dr. Hanny J. Berchmans.

Project Development Manager

USAID-ICED Project

+628775006229

hannyjberchmans@gmail.com

Hanny.berchmans@iced.or.id