Technical Working Group IV RENEWABLE ENERGY PROJECT DEVELOPMENT

Transcription

1 Technical Working Group IV RENEWABLE ENERGY PROJECT DEVELOPMENT By Team CASINDO WNT Mataram, 27 February 2011

2 Progress TWG IV Site Visit to Identified some potential location (Together with TWG II) to have general information about potential energy resource, social economy, and energy consumption. Selection of suitable target community: there are potential energy resources (solar, hydro, biogas) Participation of the community

3 Progress TWG IV Energy need assessment: Lighting: kerosene, average ±2litres/month Electricity : PV solar (100 households) CSR PLN Electricity : micro hydro (± 110 households) Community Cooking: Kerosene Firewood Possible technology chosen : Biogas

4 Section 2: Market Analysis

5 Geographic Map of Selected Location

6 Administrative Authority The village Jeruk Manis is located in the district Sikur, East Lombok, West Nusa Tenggara province. Geographically located at '21.50 " North and ' 22.17" East. This location is ± 54 km east of Mataram and is accessible using two wheelers and fourwheel with a travel time of about 90 minutes.

7 Natural Endowment of the Areas This area has abundant natural resources, such as protected forests, springs, waterfalls, rice fields, flora and fauna. The total area of the village of "Jeruk Manis" is estimated at 14 km 2, with rainfall levels of 3,000 mm per year and average air temperature of 30 degrees Celsius.

8 Demographic Profile Village/Sub Village Population Male Female Total Household Jeruk Manis (total) Barang Panas Kebun Baru Gawah Buak Source: Data villagers Jeruk Manis in October 2010

9 Family Structure and Size Size of household Percent (%) 1. 3 person person 62 > 7 person 8 Source: Data villagers Jeruk Manis in October 2010 Age structure (year) Percent (%) Children & adolescents : < 17 tahun 25 Adult : 18 s/d 50 tahun 76 Elderly : > 50 tahun 9 Source: Data villagers Jeruk Manis in October 2010

10 Educational Profile Number of Educational Facilities Village Junior High Elementary High School School Jeruk Manis Number of villagers with completed schooling Village High School D 2 D 3 S1 Jeruk Manis Number of students currently enrolled in schools Village Elementary Junior high High school University school school Jeruk Manis

11 Economic Profile The unemployment rate in this region reached 20 25%. Villagers of "Jeruk Manis" mainly work in the sectors of agriculture, commerce, government, and local handicrafts industry. Employment sectors Village Farmer Trade Government Craftsman Jeruk Manis Source: Data villagers Jeruk Manis in October 2010

12 Average household income is IDR , 00 per year or IDR ,00 per month Average household expenditure for food, energy and school fees is ,00 IDR per year or ,00 IDR per month (Source: Need assesment questionnaire)

13 Energy Profile From the energy needs survey (100 respondent), the following energy use patterns emerged: the types of energy used for cooking are firewood and kerosene, energy for lighting are kerosene and electricity, energy for vehicles is gasoline.

14 Energy expenditures per fuel type Energy service Fuel type Average monthly consumption Average cost (in IDR, at the time of writing) Cooking wood 18,6 bundle IDR 0 IDR 0 Cooking Lighting kerosene stove kerosene lamp - IDR IDR 0 13,37 litre IDR per litre Lighting Electricity 0,84 kwh + (from microhydro) IDR per month Total monthly cost IDR IDR

15 Current energy provision Type of energy Energy supply (bundle/litre/watthour) Remark Wood 18,6 x 762 families per month cooking Kerosene ± 10, 187 kilolitre per month lighting Electricity (solar-battery) 650 Wp x 8 hour x 30 day lighting Electricity (micro-hydro) 18 kw x 12 hour x 30 day lighting

16 Total demand for the proposed technology The total demand for energy in the village of "Jeruk Manis" comes from 762 households. Conducting a survey for 100 families who have cows. Number of households that are eligible to be selected as the target of the program were 40 families or households.

17 Section 3: Product or Service Description Product : BIRU (Biogas Rumah or Domestic Biogas) BIRU Program are managed and implemented by HIVOS and SNV. Both are from the Dutch development agency, and funded by the Embassy of the Kingdom of the Netherlands and supported by the Directorate General of Electricity and Energy Utilization of Ministry of Energy and Mineral Resources. The BIRU program promotes the use of biogas to fulfill the daily needs of fuel for cooking. Meeting the family cooking fuel needs with biogas is very satisfying, it can replace the role of firewood or kerosene.

18 BIRU meets with the Current Local policy. Bumi SejutaSapi OneMillionCowsPopulationinWNT province. Biogas technology provides many benefits to its users, even when compared with other technologies. Biogas development contributes to poverty reduction and strengthening the resilience of livelihoods. In addition, the approaches undertaken by BIRU in the program have a broad effect of health conditions and job creation as well as the local economy.

19 Technology Description The reactor used by BIRU has six components: 1) inlet that serves as a mixing room for the entry of animal manure, 2) reactor that serves as the anaerobic decomposition chamber, 3) gas container, storage space, 4) outlet which serves as a space divider, 5) the gas transporter room, and 6) hole deposition as a place to rest processed biogas reactor

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21 Diagram of Installation of Biogas Reactors

22 The Technical Design of Biogas Reactor

23 Configuration, Sizes & Lifetime The model used is based on the model of cement biogas digester in Nepal (SNI Indonesia). The household size reactors can be of 4, 6, 8, 10, 12 m 3. With proper care, biogas reactors are expected to stay safe for years.

24 Technology s Track Record BIRU program started in 2009, and in early 2010 had built a total of 100 digesters in Java. In July 2010, the BIRU (Domestic Biogas) courses started running in West Nusa Tenggara (WNT). By December 2010, the program has been able to build about 84 units of biogas reactors on Lombok Island.

25 Cost of a Biogas Installation and Financing Options Sizes (m 3 ) Cows Total kg of manure per day Gas produced (m 3 ) 1 1,5 2 2,5 3 Duration of use to stove (hour) Construction cost (IDR million) ,7 6, ,8 Subsidies from Hivos (IDR million) The cost to be paid (IDR million) 3,7 4, ,8

26 Maintenance Requirements BIRU biogas reactor has a standard in the construction i.e. standard materials, standard work processes, standards builders and supervisors, the standard way of working, and management standards. So when the construction of biogas reactors is in accordance with these standards, special maintenance is not required. Usually maintenance is maintenance performed on the leakage of the reactor that is guaranteed for 3 years, maintenance of the supporting component (stove, pipe, main valve, hose, etc.) that are guaranteed for one year.

27 Construction Process The construction process begins with designing the construction area, then dig the ground according to the size of the reactor to be built. Next are the hardening of the foundation and basic reactor dome, the building inlet, entering the soil to form a dome construction, put the dome in accordance with the standards and mixed in the ratio 1: 2: 3, build outlets, and install other components such as pipelines, where bio slurry.after the dome is finished casted and dried.

28 Construction Process

29 Availability of Skilled Builders In every area of work, BIRU carries out training for local builders to create biogas reactor from a professional trainer. The goal is to have in each work area professional local builders who have ID cards. In Lombok, BIRU has 31 professional builders and 9 supervisors.

30 Economic Benefits Strengthen the integration of agriculture and cattle breeding for the improvement of agricultural resources Creating jobs in the biogas construction sector Strengthen food security by improving agricultural output through the use of biogas slurry Empowering women by providing opportunities in the national domestic biogas program as an operator of biogas engines, lights, and refrigerator. Reducing deforestation Controlling greenhouse gas emissions from livestock and organic waste disposal Recycling of nutrients and restore soil fertility Promoting environmental awareness and link it to economic advantage

31 Social Benefits Reducing the burden of women to collect firewood and facilitates alternative additional activities to fill the time available. Improving access to sanitation and to reduce diseases associated with poor sanitation. Reducing air pollution from smoke, which is closely related to respiratory diseases, eye infections, and accidental fires accidents due to the use of fire in open space. Improving sanitation and hygiene education.

32 Section 4: Regulatory setting There are several relevant policies on national, regional or local level influencing the BIRU program in WNT province i.e :

33 Policies / Programs Policies / Programs National level : Substitution of kerosene with LPG; Phase-out subsidy for kerosene & provide (free of charge) LPG system to the poor. Policy objectives Implementation Policy objective Main obj. Secondary obj. To date Future likely to be achieved Lower the cost of subsidizing fuel (for the government) To reserve the kerosene for use in transport (instead of cooking); to support the use of gas, which is the more abundant fuel in Indonesia In Lombok, this measure should start in 2010 with households. Will likely be fully implemented Yes, in the longer term it will cost the government less to subsidize gas than it would cost to keep subsidizing kerosene. Regional or local level : Self-sustain energy village (Desa Mandiri Energi): 60% of the community energy needs is provided by local resources To provide energy supply for underdevelop communities, to diversify energy source, to introduce productive activity, increase job opportunities. To reduce fuel oil 20 target location of DME until 2013 Will be implemented Mixed result A million cows and buffalo BSSK) Program acceleration the development of animal farms with more priority to the empowerment of local resources with the aim that as soon as possible to achieve the optimum population in accordance with the carrying capacity of the region. o o o Rural income, meet the needs of national meat. Meets the demand for cows for other regions. Meet the needs of meat consumption in the region One million cows and buffalo population in 2012 Will be implemented

34 Section 5: Project Management Project Champion : Mr. Umar (Coordinator of the BIRU program in Lombok, WNT)

35 The motivations of BIRU program Strengthen the integration of agriculture and cattle breeding for the improvement of agricultural resources Creating jobs in the construction sector biogas Improving access to sanitation and to reduce diseases associated with poor sanitation Strengthen food security by improving agricultural output through the use of biogas slurry

36 Description of the Project Team BIRU program is managed and implemented by HIVOS and SNV. BIRU representatives in Jeruk Manis village that consists of a Coordinator, Audit Quality, and Promotion staff. As an executive in the field in cooperation with construction partner organization (CPO) from NGOs namely YM3S. The CPO has a supervisor and professional builders. The Casindo Team conducting pre preparation and socialization in Jeruk Manis village.

37 Organisation of the Project BIRU (Biogas Rumah) Construction Partner Organisation (YM3S) CASINDO Project Mr. UMAR Coordinator BIRU Lombok TURMUZI Supervisor ABDUL NATSIR PIC TWG IV M. ALI IKHSAN Promotion Staff USER

38 Section 6: Technical Feasibility Input requirements Cattle dung kg per day (at least 3 cows) for a biogas reactor of 4 m 3 and the availability of adequate water for manure and water ratio (1: 1). Space requirements Sizes (M 3 ) Space requirement (M x M) (3 x 6) (3,5 x 7) 4 x 8 4,5 x 9 5 x 10

39 Other requirements Maximum allowed distance is 200 meters between biogas reactor with a kitchen. Closest distance ever is 12 meters, but in the implementation of the reactor can be done under the kitchen. Biogas reactor can work at ambient temperature, best at a temperature of 35 o C.

40 Output Biogas reactor to produce gas that has a gas pressure of 80 cm of water. min 55 cm water pressure, 2 days after full charging has begun to burn, and cook with blue flame and faster than kerosene stove. Consumers needs fuel that: 1) cheap, and easy to cook on, 2) saves time (no need to search for firewood, not lining up to buy kerosene), 3) safe when used against explosion, 4) clean and healthy, and 5) increase family welfare.

41 Section 7: Financial Analyses Capital costs (are Planning and Construction or Pre operation costs) Biogas digester to be installed in the village "Jeruk Manis" is estimated as many as 40 units to be built during 4 years, so it will build 10 units each year. BIRU program is covering the planning and pre operational cost including final enginering design and also worker training.

42 Capital Costs Planning Costs Year 0 P1 Obtaining all permits - 0 P2 Technical analysis - 0 Subtotal 0 TOTAL all years - 0

43 Operating Costs Number of biogas digester will be installed in Jeruk Manis village is 40 units, so can be estimated that will installed 10 unit each year Year Total Number of digester (unit) OPERATING COSTS Year 1 Year 2 Year 3 Year 4 1 General and Administrative Costs Labor costs Material costs TOTAL

44 Installation of digester depend on total demand installed and speed of construction. The total demand depend on socialization and financial possibility. General and administrative cost consist maintanance and construction fee.

45 Grants and Subsidies BIRU program will give subsidies 2 million IDR to consumen if their installing the biogas digester. 1 Grants and Subsidies Casindo Preoperation support Year 0 Year 1 Year 2 Year 3 Year Hivos Grant Subtotal TOTAL all years

46 Revenues Revenues represent what customers are expected to pay for goods and services offered. Revenues Year 1 Year 2 Year 3 Year 4 R1 Revenue from Units Revenue per Unit R2 Revenue from 2 Units Revenue per Unit REVENUES

47 Cash Flow The Cash Flow Projection (and analysis) is one of the most important parts of the business plan.itshowshowcashisexpectedtoflowin and out of your project, summarizing the expected costs, revenues and difference between them. A Cash Flow Projection will give you a much better idea of how much investment your idea needs.

48 TOTALS Year 0 Year 1 Year 2 Year 3 Year 4 COSTS (& GRANTS/SUBSIDIES) Capital Cost C c 0,0 0,0 0,0 0,0 0,0 Capital / pre-operation grants G c 0,0 0,0 0,0 0,0 0,0 Operating costs C o 0, ,0 Operating grants G o 0, ,0 TOTAL COSTS TC = (C c -G c )+(C o -G o ) 0, ,0 NPV TOTAL COSTS (discount rate = 12%) NPV TC = TC / (1+disc rate) t; t = year of operation 12% ,9 0, , , , , , , , , , , , , ,3 BENEFITS Revenues R 0, ,0 NPV R = R / (1+disc rate) t; t = year of NPV revenues operation 12% ,9 0, , , , , , , ,3 Interest Taxes Depreciation NET INCOME NI t = R t -TC t 0,0 0,0 0,0 0,0 0,0 Accumulated Income* AI t = AI t-1 + NI t 0,0 0,0 0,0 0,0 0,0 NPV NET INCOME NPV NI = NI / (1+disc rate) t; t = year of operation 12% 0,0 0,0 0,0 0,0 0,0 0,0 Benefit/cost Ratio B/C ratio = NPV R / NPV TC 1,000

49 Section 8: Risk Analysis Completion Risk There are several possibilities that cause delays in the construction of biogas digester, although funds were available include: The price of very significant material in the biogas digester construction rose sharply as rising cement prices. The unavailability of skilled builder, skilled builder are there to get another job that is more promising (cost of labour is higher) compared with standard from HIVOS. CPO or HIVOS late responding to users who are interested to build a biogas digester.

50 Technology Risk BIRU program has built 84 biogas digester spread in many villages (December, 2010). Based on information from the Coordinator and promotion staff BIRU program Lombok entirely to function properly. So could be said that BIRU program 100% successful to build biogas digester and operate properly on the Lombok island. In the implementation BIRU program in Lombok ever had problems for 1 user. Biogas digester construction goes well, when inserted cow manure for 7 days into the digester did not produce gas. Then the evaluation to the construction of digester and cow manure reissued, The next to be checked against leakage digester and re enter the new dirt (dirt does not mix the soil), then in 2 3 days biogas digester function properly as shown by producing a blue flame. Apparently that cow dung must not be mixed with the soil because it causes

51 Supply Risk The material to build a biogas digester available adequate much around the location, so there is no risk of material supply. Things may have happened to BIRU program Lombok is delay of delivery of component biogas stoves. Biogas stove imported from outside the area (Bandung) and thus require a long time.

52 Economic Risk People in village can not the pay biogas digester, because the price to build a biogas digester is 3 million more. Average income per month of the villagers "Jeruk Manis" is very low, so it is not possible to build biogas digester.

53 Financial risk Occurs either when variable interest rates are used, refinancing of the project is assumed sometime during its life or additional financing is required in the future. Changes in interest rates would cause financial risks occur. Based on historical growth rate is that interest rates in Indonesia are relatively stable (constant) so that very small risk caused by interest rates.

54 Political Risk Political issues at the regional level WNT did not result in changes in rules and regulations in the implementation of the BIRU program in Lombok. Instead the local government is support in the implementation of the biogas digester, because the government's main issue now is the utilization renewable energy. In addition, local governments have a program is one million cows population (BSS), where the BIRU program is very consistent with BSS program. The problems caused by the BSS program, the more the number of cattle will be a lot of dirt, this issue is an opportunity for BIRU to make biogas. Biogas can replace kerosene and firewood as a substitute energy for cooking.

55 Environmental Risk Biogas digester no negative impact to the community or a user, otherwise the biogas digester will have a positive impact include: Dirty cages and cows that used to disturb the environment, is now a clean, tidy and healthy. The smoke from wood stoves and fuel oil can harm the health, now a clean and safe from pollution. Forests around the village many harvested by residents who are looking for firewood, now awake and green forest.

56 Social Risk Implementation of biogas possible the social risks for some people: Residents who have not obtained the education and socialization of the benefits of biogas is still think taboo / unclean of cattle dung. The implementation will create jealousy if there are that can not, there are the first to etc.

57 Force Majeure Risk Force majeure risk that may occur in the construction of biogas digesters in the village "Jeruk Manis" is the occurrence of earthquakes, volcanic eruption, or landslide.