Opportunities and Challenges in Applying Innovative Technology in Indonesia Case Study

Transcription

1 Opportunities and Challenges in Applying Innovative Technology in Indonesia Case Study Hari Yuwono, Consultant Presentation at AHK GIZ Event, Intercontinental Hotel - Jakarta 17 th November 2014

2 Outline 1. RE Resources, Opportunities & Value Creations 2. Electricity from Biomass 3. Business Structure 4. Challenges & Approaches P2

3 RE Resources, Opportunities & Value Creations 1 Source: P3

4 Characteristics of Electricity Generated from RE 1 Resource Plantation Palm Oil Mill Sugar factory Rice mill Power Generated Technology Biomass Biogas Small Hydro Agriculture Palm Oil Mill Municipal waste PV Wind River Sun shine speed > 6m/s Base load Base load Base load Intermittent Intermittent Combustion in boiler & steam turbine Efficiency 16 to 35 % depending on size, pressure, temperature Combustion in boiler and gas engine Hydro Turbine % % depending on head, flow and turbine type Solar Panel Wind turbine % % Availability 8000 h/y 8000 h/y 8000 h/y 3000 h/y 3000 h/y P4

5 Electricity Generation, Transmission & Distribution 1 Electricity generated = electricity demand + losses (transmission, distribution, transformer To be maintained in the power generation: Voltage, Frequency, Phase Resource Conversion Tech. Transmission/Dist ribution Availability Continuity & Cost Reliability Investment cost Availability Capability Demand Demand Characteristics Purchasing Power Source: P5

6 2 Electricity from Biomass: Combustion, Gasification & Biogas

7 Biomass & Some Transformation Path 2 During the photosynthesis process, carbon dioxide will react with water in the living plant and produces sugar: 6CO 2 + 6H (energy from sunlight) C 6 H O 2 Combustion process : C 6 H 12 O 6 + 3O 2 6H 2 O+ 6CO 2 + Energy Decomposition of organic wastes through anaerobic process : C 6 H 12 O 6 3CH 4 + 3CO 2 + Energy Source: agroindustriindonesia.blogspot.com, P7

8 Biomass Technology Status (1) 2 Source: IEA Bioenergy 2009 P8

9 Biomass Technology Status (2) 2 Source: IEA Bioenergy 2009 P9

10 Combustion vs. Gasification Comparison Comparison between Direct Combustion and Gasification Technology for Electricity Generation 2 Direct Combustion Gasification Fuel flexibility High Moderate Technology Status Mature Early Commercial Typical Size > 5 MWe except for cogeneration > 1 MWe < 1MWe Reliability High Poor to reasonable Complexity High Moderate Operational aspect Relatively easy Difficult Further information: iea.org and etsap.org, and World Bank Technical Paper no. 422,March 1999 P10

11 3 Business Structure

12 Business Structure 3 Key Partners - Investors/Busine ss Developers - PLN - Lenders/Banks - Technology Providers - Vendors - Contractors - National & Local Government Institutions - Community, etc. Key Activities - Energy Conversion - Electricity production and selling to Grid Key Resources - RE resources measured - Technology - Human resources - Financing source Cost Structure - Capital expenditure recovery (Development - Labor cost - Operation & maintenance costs - Financing costs RE Business Model Value Propositions - Renewable energy - Improve access to electricity - Emission reductions - Reliability - Profit - Job creation Customer Relationship - Minimum committed power - Automated monitoring Channels - PLN grid - Small grid Customer Segments - PLN - End customer: PLN customers - B to B Revenue Streams - Feed-in Tariff (PPA & Period) - Annual power generation - Optional : carbon credit - Indirect : premium CPO price, cost saving due to replacement P12

13 Economic Analysis 3 IRR > 14% Payback Period 4-7 Years NPV > 0 Industry Profitability Standard : Power/Utility Sector Expected Return Lending Rate Source: P13

14 Funding 3 Readiness of : Project developers FS & Investment Consultant Bank/ Financial Institutions Technology Providers & Contractors Insurance Company Source: P14

15 4 Challenges & Approaches

16 Challenges Cost Overrun, Break down & Profit Good operational and maintenance practices are essential to ensure sustainable revenue. Unexpected problems/breakdowns have to be minimized. 4 Cost overrun Well funded feasibility study? Good expert? Good design? Reliability issue Good machines? Good Integration? Any profit? Income > Cost? Source: filetraffic.eu, P16

17 Making RE Work 4 Capacity Building Technical Assistance Demonstration projects RE Project Developers Consultants Technology Providers O&M Companies Local communities RE Business Profit/Value Growth Job creation Income Prosperity Sustainability GHG reduction Capacity Building Technical Assistance Demonstration projects Investment Sources: Banks Financial Institutions Private Equity Gov. Budget Donors Financing Schemes: Corporate Financing: Project Financing PPP Grant Government Policies (law, regulation, decree) Incentives Feed in tariff Sustainability Environment Taxation Order/Prohibition Discipline/Penalty Capacity Building Technical Assistance Demonstration projects P17

18 Thank You Website : info@imajigroup.com :