SOLAR PV IN INDONESIA TAKING ADVANTAGE OF THE NEW LANDSCAPE

Transcription

1 SOLAR PV IN INDONESIA TAKING ADVANTAGE OF THE NEW LANDSCAPE

2 Indonesia s Solar PV Landscape 23% renewable energy mix by 2025 Government targets of 5GW of solar; supported by the utility company commitment in their electricity supply plan High potential for solar PV integration Diverse commercial and legal framework that allow different business models

3 HOW BIG IS THE MARKET

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5 Indonesia s Installed Generation Capacity (2015) Java-Bali and Sumatra (41GW) Total Indonesian solar PV potential at 10% penetration (4.5GW) Rest of Indonesia (4.1 GW)

6 Installed and Targeted Solar PV Projects in Indonesia GW GW Planned for 2025*** *** Maritje Hutapea, Director of Various Renewable Energy tuk.capai.target.23.persen.pada.2025 Target for 2018** ** Rida Mulyana, Director General of New and Renewable Energy and Energy Conservation warkan.250.mw.energi.surya MW* * %20Energy%20Strategy%20Report.PDF

7 Localized Energy Generation Costs A GIZ study reveals Indonesia s utility energy generation costs throughout the country. This is very relevant since Indonesia s electricity grid consists of over a large system in Java-Bali, medium sized grid systems in Sumatra, Kalimantan and Sulawesi, as well as 600 smaller isolated grids (*). * = ADB - Summary Of Indonesia s Energy Sector Assessment

8 Indonesia s Electricity Sector Stakeholders

9 Abbreviated Direct Solar IPP Procedure With PLN Developer submits proposal to PLN (this is in essence the Pre- FS) Request for Proposal by PLN (which includes submission of FS and grid study) Proposal reviewed by PLN for final approval Commercial Operation Date Commences (PLN start counting sale) Some steps here PLN reviews proposal Pre-Qualification of project details and project developer Price negotiation with PLN (based on PLN s assessment of the project financials) Commissioning with PLN and handover to project developer Negotiate terms of proposal with PLN (this is in essence the grid study and full FS) Direct appointment permit issued by Ministry of Energy PPA Signing Construction A lot of steps here Approval for direct appointment by PLN Request for direct appointment by Ministry of Energy Financial close EPC contract negotiated and awarded

10 Timeline of MEMR Regulation 19/2016

11 BASIC PROJECT DEVELOPMENT PROCESSES National Grid Identification A desk study of the Indonesian grid to identify suitable regions for the project developer s risk appetite and other criteria Captive power Regional Study A regional study is done to identify high-level logistics and project implementation risks and select a likely region Project Area Review Within the region(s) that have been identified, location specific reports and preliminary discussions with PLN and potential sites will be identified Site Assessment Look for potential land to acquire, specific discussions with PLN and local government. Perform pre-feasibility surveys on a few highly likely sites with possible land agreements Feasibility Study Full feasibility study of the project site including grid interconnection study, logistics and project management assessment, and other work as required

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13 Challenges = Opportunities

14 LOGISTICS WHAT ARE THE PORT FACILITIES LIKE OTHER THAN JAKARTA AND SURABAYA

15 HEAVY EQUIPMENT IS IT AVAILABLE ON LOCATION?

16 SURVEY NOT JUST A DESK STUDY

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22 A HIGHWAY

23 LET S GET SERIOUS

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27 BE DIFFERENT THAN THE REST

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29 SYSTEM SIZE 10% FROM DAYTIME PEAK LOAD IS TYPICALLY THE RULE OF THUMB

30 NREL STUDY WITH ADDITIONAL REASONABLE RESERVES AND RESOURCES DEPLOYED, OAHU AND MAUI CAN REACH ABOUT 20% PENETRATION WITH VARIABLE RENEWABLE ENERGY POWER PLANTS

31 Indonesia s Electricity Sector Stakeholders

32 B2B WITH PLN OVER 500MW IN ACTIVE BILATERAL INTEREST AGREEMENTS WITH PLN

33 ROOFTOP PV WITH DECREASING COST OF EQUIPMENT LARGE ROOFTOP SOLAR PV SYSTEMS ARE GETTING CLOSE TO GRID PARITY (US$0.08/KWH) IN INDONESIA

34 PRIVATE PPA MANY PRIVATELY HELD COMPANIES ARE OPERATING THROUGHOUT INDONESIA WITH HIGH COST OF ENERGY

35 FINANCIAL ENGINEERING RISK MANAGEMENT

36 OPPORTUNITY BEING CREATIVE WITH YOUR BUSINESS MODEL FOR SOLAR PV PROJECTS

37 THANK YOU