Introduction of our study on energy sector

Size: px
Start display at page:

Download "Introduction of our study on energy sector"

Transcription

1 Introduction of our study on energy sector July/10/2013 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc. Socio & Eco Strategic Consulting Sector

2 2 Introduction of our company Name Establishment April 12, 1991 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING,Inc. Shareholder NTT DATA CONSULTING,Inc. 100% NTT (Nippon Telegraph and Telephone) Group NTT Group consists of the following major communication companies Capital 450 million Head Office 10th floor, JA Kyosai Building, 7-9, Hirakawa-cho 2- chome, Chiyoda-ku, Tokyo , Japan Business URL 1. Investigative research and consulting services related to corporate management and public administration 2. Investigative research and consulting services related to the planning and development of information and communications systems 3. Investigative research and consulting services in the economic, social, industrial, cultural, and other spheres 4. Implementation/operation of education/training programs and seminars, information provision and publication concerning the above activities 5. All incidental services pertaining to the above activities NTT DATA has played an instrumental role in establishing and advancing Japanese IT infrastructure, in particular largescale and mission critical IT systems.

3 3 Introduction of our team Company structure We promote client approaches through activities including support for smart community development, assistance with export of infrastructural elements, and creation of new business by private-sector consortiums. Our experience (example) Feasibility studies of smart community projects inside and outside Japan Carbon management consulting Study of application of measurement-reportingverification(mrv) methodology Carbon-offset product projects Examination of a traceability system for international resource circulation Study for promotion of sorted collection and recycling of containers and packing Study concerning carbon capture and storage in Europe and the United States Support for improvement of environmental management and quality at a major health care company Promotion of business in energy harvesting

4 Background & Purpose of this study Background Purpose In Surabaya, many advanced activities regarding low carbon society have been implemented in energy sector. Installing energy efficient lighting and switching off unnecessary lights at city government building Installing PV LED street lamps Feasibility study on CHP (Combined Heat and Power) at SIER (Surabaya Industrial Estate Rungkut) Although CO2 emission reduction potential of these activities have been roughly estimated, MRV methodologies for JCM have not been developed. Although Surabaya city government has a interest in building low carbon society as advanced local government, they lack know-how needed to quantify CO2 emission, set up project based on CO2 emission quantification, and so on. These unique activities in Surabaya have only been experimental and practical activities have not been implemented; energy saving potential and needs survey, setting up strategic model projects, business feasibility study on ESCO, and so on. There have been no CHP business feasibility study done in other areas than SIER (including contiguous city). This study aims to establish an environment for achieving low carbon society as whole Surabaya city from a perspective of JCM Localizing Japanese low carbon technology Constructing a operating structure We wet study policies as below; Developing MRV methodology for activities whose CO2 reduction potential have already been quantified, with the aim of applying JCM. Doing basic study (including ESCO business feasibility) on the activities whose basic survey (i.e. energy saving potential and needs survey) have not been done. Doing business expansion feasibility study and evaluation of CO2 reduction potential on the activities whose business model have been developed. 4

5 5 Current situation of energy sector in Indonesia (1/2) Reduction of CO2 emission from electricity consumption is an important issue to be solved. Increase in Electricity Demand It is estimated that electricity consumption amount will increase by an average of 8.65% from 2012 to 2021 in Indonesia. Dependent on Coal Source:PLN Indonesian government prioritize using coal as power source because of its abundant potential. In the future Grid emission factor will keep high value due to high ratio of coal consumption. CO2 emission amount will grow as electricity consumption amount increases Counter measures Energy conservation Low carbon energy High efficient power generation Source:MEMR

6 6 Current situation of energy sector in Indonesia (2/2) Needs for energy conservation is now growing due to increase in power tariff by PLN. In the future, energy conservation activities will be implemented coupled with global warming policy. Conventional situations Increase in Energy conservation needs Needs for energy conservation is now growing due to increase in power tariff by PLN this year PLN will increase their tariff by 15% this year. Each company has to implement energy conservation activities due to this increase in tariff. Lack of energy conservation activities Knowledge and understanding of the importance and benefits is still limited. Encouragement is still weak, because energy prices are still subsidized. Electrical equipment on the market is still much to be inefficient. Ability to implement Energy Management and Energy Audit is still weak. Support from Financial institutions for energy conservation business is weak Energy Services Company (ESCO) to support energy conservation is still limited. Standardization and labeling programs have not been fully implemented and functional. In the future Expand of energy conservation activities among factories, building, etc. Growing needs of managing GHG emission amount at large facilities Awareness of GHG emission reduction is growing through activities implemented by both national and local government. Preparation of RAN-GRK and RAD-GRK Implementation of Global warming policy

7 7 Our study items (1/2) A. Study on CHP installation at SIER Contents Counterpart Participant company 1. Trial calculation of CO2 emission reduction 2. Developing MRV methodology 3.Expansion feasibility study Trail calculation of CO2 emission reduction amount of CHP installation at SIER based on last year s survey Developing JCM applicable MRV methodology based on current situation of SIER, referring to existing similar methodology. Quantification of CO2 reduction. Doing business expansion feasibility study of CHP installation at neighboring areas other than SIER. Examining possibility of applying JCM BAPPEKO, KLH PT SIER Factories in SIER PLN, etc BAPPEKO, Industry Bureau, etc East java province Other local governments

8 8 Our study items (2/2) B. Study on potential of ESCO, BEMS, dispersion type power source Contents Counterpart Participant company 1. Potential of energy saving and installation of dispersion type power source outside of industrial area 2.Installation of LED at the highway lighting Examining possibility of energy conservation and installation of dispersion type power source outside industrial area (i.e. data center, shopping mall, university, hospital, city government building and so on) Developing JCM applicable MRV methodology according to specified candidate technology Quantification of CO2 reduction potential Examining possibility of LED installation at the high way Developing JCM applicable MRV methodology referring to existing similar methodology Quantification of CO2 reduction potential BAPPEKO, Industry Bureau, etc Suppliers, Builders, etc BAPPEKO, Public works bureau, etc LED supplier, etc

9 9 Relation between our study items and current CO2 emission in Surabaya The total of industrial sector and commercial sector accounts for more than 50% of whole CO2 emission amount in Surabaya. CO2 emission amount by sector in Surabaya city (2010) 19% 20% A. Study on CHP installation at SIER 25% 34% B. Study on potential of ESCO, BEMS, dispersion type power source 出典 : The World bank SUED program Report

10 CO2 emission reduction potential CO2 reduction potential of these activities in Surabaya is estimated at approximately 50,000 t-co2/year in total. CO2 emission Activities reduction Conditions of Estimation CHP installation at SIER About 38,000 t-co2/year Installing natural gas fueled CHP at SIER and supplying both power(16mw) and steam(37t/h) to factories located in SIER. Baseline:Electricity supplied from PLN, Each factory produces steam by their natural gas-fueled boiler 112,000t-CO2/year Project:Electricity and Steam supplied to each factory by natural gas-fueled CHP plant 74,000t-CO2 / year Energy conservation in building About10,000 t-co2/year Assuming 20% energy saving achieved at each building Shopping mall:5,040t-co2/year Hotel: 2,350t-CO2/year Data center: 170t-CO2/year Hospital: 1,790t-CO2/year Installation of LED at the highway lighting About 630 t-co2/year Assuming 640 LED lights are installed at the 14km highway in Surabaya which is planned to be constructed this year. Compared with conventional mercury lamps: 630t-CO2 / year Compared with high pressure sodium lamps: 250t-CO2 / year 10

11 11 Image of our activity A. Study on CHP installation at SIER We plan to do CHP business at SIER We found 5 potential users in SIER and specified candidate CHP (Electricity:16MW, Steam:37t/h ) Steam 37t/h Natural gas Gas turbine Electricity 16MW B. Study on potential of ESCO, BEMS, dispersion type power source Tunjungan complex BAPPEKO High way Source:wikimapia, tripadvisor, etc

12 12 Schedule A. Study on CHP (Combined Hear and Power) installation at SIER 1. Trial calculation of CO2 emission reduction 1. Trial calculation of CO2 emission reduction 2. Developing MRV methodology 1. Suveying existing methodolgy(cdm, J-credit, etc) 2. Preparing JCM applicable methodology 3. Examining applicability of methodology at SIER 3. Expansion feasibility study 1. Listing candidate areas 2. Needs survey at candidate areas 3. Quantification of CO2 reduction potential B. Study on potential of ESCO, BEMS, dispersion type power source 1. Examining possibility of energy conservation and installation of dispersion type power source outside industrial area 1. Listing candidate buildings 2. Needs survey at candidate buildings 3. Examining applicable technologies 4. Suveying existing methodolgy(cdm, J-credit, etc) 5. Preparing JCM applicable methodology 6. Quantification of installation effect (CO2, cost, etc) 7. Examining next step (business feasibility, etc) 2.Installation of LED at the highway lighting 1. Examining possibility of LED installation at the high way 2. Suveying existing methodolgy(cdm, J-credit, etc) 3. Preparing JCM applicable methodology 4. Quantification of installation effect (CO2, cost, etc) Reporting 1. Report writing July August September October November December January February Field survey Kick off Field survey Interim report Seminor

13 Copyright 2011 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.