Supreme PDD V 4.4 Clean

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.
CDM Executive Board

page 1
CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A.
General description of project activity
B.
Application of a baseline and monitoring methodology
C.
Duration of the project activity / crediting period
D.
Environmental impacts
E.
Stakeholders comments
Annexes
Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan

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SECTION A. General description of project activity

A.1
Title of the project activity:
>>
Liki Pinangawan Muaralaboh Geothermal Power Plant
Version 04.4
03/10/2012
A.2.
Description of the project activity:
>>
Liki Pinangawan Muaralaboh Geothermal Power Plant (hereinafter referred to as the project activity) is a
234MW greenfield geothermal power project in West Sumatera Province, along the Sumatera Fault
System (SFS) in Indonesia. The project being implemented by PT Supreme Energy Muara Laboh (PT
SEML) (hereinafter referred to as the project owner) is a grid connected geothermal power plant and
supplies low emission power to the Sumatera grid (hereinafter referred to as the grid).
The project activity consists of two turbines of 117 MW each that will be installed in the southern Muara
Laboh resource area (WKP). The power plant will generate electricity to export to the state-owned
electricity company, PT Perusahaan Listrik Negara (herein referred to as PT PLN) via Sumatera Grid.
The project activity is expected to have a net capacity of 220MW and PT PLN will buy this at 90% Take
or Pay Energy (ToP).
Geothermal power is a renewable source of energy which displaces the fossil fuel fired power generation
in the connected grid. Hence the project activity will reduce greenhouse gas emissions by producing
electricity from a renewable resource with low carbon emissions. At the current point in time, the project
activity has implemented a number of preliminary surveys and studies but has not yet started its
exploration drilling phase. The project activity is estimated to generate emission reductions equivalent to
993,428 tCO2 /year during the first crediting period. The actual amount of emission reductions may differ
from this figure as they depend on the concentration of non-condensable gases in the steam (Project
Emissions) and on the thermodynamic parameters of the extracted geothermal fluid, unknown at this
point in time. The project is expected to start its operation in the third quarter of year 2015.
As determined in Section B.4, the baseline scenario is same as the scenario existing prior to the start of
the implementation of the project activity i.e. electricity delivered to the Sumatera grid by the project
activity would have otherwise been generated by the operation of grid-connected power plants and by the
addition of new generation sources. The project boundary includes the CO2 emissions from electricity
generation in the fossil fuel fired power plants that are displaced due to the project activity and the
emissions of CH4 and CO2 from non-condensable gases contained in geothermal steam.
Contribution of the project activity to Sustainable Development
The project is a geothermal power plant and hence diversifies the sources of electricity generation in the
host country, which is important for meeting growing energy demands, and facilitates the transition away
from diesel and coal-supplied electricity generation.
Contribution of the project activity to the social and economic conditions

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The project will contribute significantly to the social and economic situation of the local people through
creation of employment opportunities during the construction of the power plant besides providing
employment opportunities during the operation of the plant. Approximately 800 people will be employed
during the construction phase (Exploitation) and the number of total direct employees will be around 100
during operational phase (Utilization). Efforts will be made to source the material and labour locally to
maintain local community participation.
Contribution of the project activity to the environment
The proposed project activity utilizes available heat under the surface of earth as a source for power
generation, which is considered a low emissions power source. The project activity will displace part of
the electricity generated in Sumatera Grid, which is dominated by fossil fuel fired power plants, and thus
reduce greenhouse gas emissions, thereby improving the air quality.
Contribution of the project activity to technological well being
The project activity would utilize environmentally safe and sound technology available in the geothermal
power generation sector. The technology will be procured from an Annex 1 country and hence
technology transfer will take place from Annex 1 country to the host country.
A.3.
Project participants:
>>
Name of Party involved
((host) indicates a host Party)
Private and/or public entity(ies)

project participants (as applicable)
If Party wishes to be
considered as a project
participant
No
Private Entity: PT Supreme Energy

Muara Laboh
(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public
at the stage of validation, a Party involved may or may not have provided its approval. At the time of
requesting registration, the approval by the Party(ies) involved is required.
Indonesia (host)
Contact details as listed in Annex I.

A.4.
Technical description of the project activity:

A.4.1. Location of the project activity:
>>
A.4.1.1.
>>
Republic of Indonesia
A.4.1.2.
Host Party(ies):
Region/State/Province etc.:
>>
West Sumatera Province
A.4.1.3.
City/Town/Community etc:
>>
Solok Selatan Regency, Pauh Duo Subdistrict

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A.4.1.4.
Detail of physical location, including information allowing the
unique identification of this project activity (maximum one page):
>>
The project activity is located at Liki Pinangawan Muaralaboh Geothermal Working Area, about 100 km
south east of Padang, the capital city of West Sumatera.
The GPS coordinates of the exploration area of the project activity are:
Longitude:
101002 101008 East
Latitude:
01028 01036 South
Pauh Duo
Subdistrict
Figure. A.4.1. Location map of Liki Pinangawan Muaralaboh Geothermal Power Plant, Pauh Duo
Subdistrict, West Sumatera

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A.4.2. Category(ies) of project activity:

>>
Sectoral Scope 1: Energy Industries (renewable/non renewable sources)
A.4.3. Technology to be employed by the project activity:
>>
Geothermal power uses naturally occuring heat within the earth to produce steam to rotate the turbine and
generate electricity. The technology which will be applied in the project activity to produce net 220 MW
power is the direct use of the steam (probably generating additional steam through flashing in separators)
in an open cycle steam turbine.
Steam is separated from the water-dominated resource through flashing in steam separators and after
passing through steam scrubbers, the steam is directed to the steam turbine coupled to the generator. This
is the most common technology for high temperature geothermal fluids (above 180oC). The water
separated from steam in the separator (brine) and the steam condensed in the condenser after passing
through the turbine are re-injected to the reservoir.
The technology is technically sound and environmentally safe as demonstrated by succesfull installations
around the world. The direct open steam cycle (steam turbine) has historically been the conventional
technology used worldwide in most high temperature geothermal power plants. The technology will be
procured from an Annex 1 country and hence technology transfer will take place from Annex 1 country to
the host country. The technology supplier will conduct a comprehensive training for the employees to
make sure the plant is properly maintained and operated efficiently.
Geothermal power plant development can be broadly divided into the following five phases:
1.
2.
3.
4.
5.
Preliminary survey
Exploration
Feasibility Study
Exploitation
Utilization
Currently, the project activity has implemented a number of preliminary surveys and studies but has not
yet started its exploration drilling phase. The collected geoscientific data and their analysis permit to
conclude, with high probability, that the Muara Laboh resource is a high temperature (2400C or more)
resource in a liquid dominated (i.e. two-phase) reservoir. The fluid enthalpy (i.e. steam content) and
concentration of non-condensable gases will only be known after the first wells are drilled.
Consequently, the preliminary engineering studies and evaluations had to make assumptions about these
essential parameters of the extracted geothermal fluid.
The power plant will use two condensing steam turbines, each with an installed capacity of 117MW,
coupled with the generator. The main equipments to be installed in the project activity are as follows:
-
Condensing steam turbine

Main generator
Gas extraction system (GES)

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Cooling water systems (CW)

Generator step-up transformer and step-down transformers
Scrubbers
Plant DCS (Distributed Control System)
SAGS ( Steamfield Above Ground System)
A common emergency diesel generator will be set up. The system is capable of meeting the starting and
operational demands for essential services required to maintain the generating unit and the steam field in
a safe condition and ready to be re-started once start-up power is re-established.
The geothermal power equipments typically have lifespan of 30 years1. In the case of project activity, the
average lifetime of the project activity is estimated to be 30 years based on the Preliminary Development
Plan for the project activity2 and it is in line with the contractual period agreed with PLN.
As suggested by the Preliminary Development Plan, the plant capacity factor of the project
activity is 98% and the availability factor is 96% and both combination results a service
capacity factor of 94%3 and the steam flowrate is estimated to be 289 kg/s for each unit. The PP
will enter into a 90%4 take-or-pay agreement of the net installed capacity (220MW) with PT
PLN so that the yearly amount of electricity to be purchased by PT PLN from the project has
been fixed. PT PLN is not obliged to pay for the extra kWh generated over the agreed amount of
electricity and it is of the interest of the PP not to produce less this amount because otherwise it
will be penalized.
http://www.os.is/gogn/unu-gtp-sc/UNU-GTP-SC-02-23.pdf
Final Report Preliminary Development Plan for the Muara Labuh Geothermal Resource, West Sumatra,
Indonesia, Sinclair Knight Merz, June 2009 page 67
3
Final Report Preliminary Development Plan for the Muara Labuh Geothermal Resource, West Sumatra,
Indonesia, Sinclair Knight Merz, June 2009 page 35
4
As per Tender document released by the local government of Solok regency and confirmed by Letter of Intent
(LOI) for electricity purchase by PT PLN dated 29/03/2011

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Process Diagram of Power Plant is shown below:
Figure. A.4.3. Process Flow Diagram Condensing Steam Turbine Power Plant
The proposed project activity is the installation of a new grid-connected geothermal power plant
(greenfield). In the absence of the project activity, the demand of electricity would have otherwise been
met by the generation of power by the operation of grid-connected power plants and by the addition of
new power generation sources in the Sumatera grid. Hence the baseline emissions are calculated as per
the approved methodology based on the CO2 emissions from electricity generation in fossil fuel fired
power plants connected to Sumatera grid that are displaced due to the project activity. The fugitive
emissions of CH4 and CO2 from non-condensable gases (NCG) contained in geothermal steam and CO2
emissions from combustion of fossil fuel of the emergency diesel generator are taken into account for the
project emissions of the geothermal power plant.
In case of the project activity, the baseline scenario is the same as the scenario existing prior to the start of
implementation of the project activity.
The quantity of net electricity generation supplied by the project plant to the Sumatera grid will be
metered by 2 bidirectional meters, main meter and check meter, located at Substation of Muara Laboh
Power Plant 150kV, with accuracy class of 0.2. The measurement procedures to be applied are in
compliance with the provisions of the Power Purchase Agreement.
The calculation of steam quantities produced will be conducted based on the the measurement of the
steam flow in the main steam line from the separators wells with Venturi flow meter.
The quantity of diesel combusted by the emergency diesel generator will be based on the measurement of
the flow meter installed at the output of the diesel storage tank.

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Non-condensable gases sampling will be carried out in production wells and at the steam field-power
plant interface. The gas portion is then analyzed using gas chromatography to determine the content of the
residuals including CH4 and CO2.

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A.4.4
Estimated amount of emission reductions over the chosen crediting period:
>>
A seven year renewable crediting period has been chosen for the project activity.
Years
18/09/2015-17/09/2016
18/09/2016-17/09/2017
18/09/2017-17/09/2018
18/09/2018-17/09/2019
18/09/2019-17/09/2020
18/09/2020-17/09/2021
18/09/2021-17/09/2022
Total estimated reductions (tonnes CO2e)
Total number of crediting years
Annual average over the crediting period of
estimated reductions (tonnes of CO2e)
Annual estimation of emission reductions in

tonnes of CO2e
993,428
993,428
993,428
993,428
993,428
993,428
993,428
6,953,997
7
993,428
A.4.5. Public funding of the project activity:

>>
The project activity does not involve any public funding or Official Development Assistance (ODA) from
Annex I countries.

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SECTION B. Application of a baseline and monitoring methodology

B.1.
Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
>>
Approved consolidated baseline and monitoring methodology
ACM0002 - Consolidated baseline methodology for grid-connected electricity generation from
renewable sources, Version 12.2.0, EB 65 Annex 16
The project activity also refers to the latest approved versions of the following tools:
Version 02.2.1 - Tool to calculate the emission factor for an electricity system, EB 63 Annex 19
Version 06.0.0 - Tool for the demonstration and assessment of additionality, EB 65 Annex 21
Version 02 - Tool to calculate project or leakage CO2 emissions from fossil fuel combustion, EB
41 Annex 11
B.2
Justification of the choice of the methodology and why it is applicable to the project
activity:
>>
The project activity meets the applicability criterion mentioned in the applicable methodology
follows:
S. No.
1.
2.
3.
Criteria
This methodology is applicable to gridconnected renewable power generation project
activities that
(a) install a new power plant at a site where
no renewable power plant was operated
prior to the implementation of the project
activity (greenfield plant);
(b) involve a capacity addition;
(c) involve a retrofit of (an) existing plant(s);
or
(d) involve a replacement of (an) existing
plant(s).
The project activity is the installation, capacity
addition, retrofit or replacement of a power
plant/unit of one of the following types: hydro
power plant/unit (either with a run-of-river
reservoir or an accumulation reservoir), wind
power plant/unit, geothermal power plant/unit,
solar power plant/unit, wave power plant/unit
or tidal power plant/unit.
In the case of capacity additions, retrofits or
replacements (except for wind, solar, wave or
tidal power capacity addition projects which
use Option 2: on page 11 to calculate the
parameter EGPJ,y): the existing plant started
as
Justification
The project activity is the installation of a new

geothermal power plant (greenfield plant)
connected to Sumatera grid and hence
conforms to this criterion.
The project activity is the installation of a new

geothermal power plant and hence conforms
to this criteria.
This criterion is not applicable as the project

activity is a new power plant and not a
capacity addition, retrofit or replacement.

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4.
5.
commercial operation prior to the start of a

minimum historical reference period of five
years, used for the calculation of baseline
emissions and defined in the baseline emission
section, and no capacity expansion or retrofit
of the plant has been undertaken between the
start of this minimum historical reference
period and the implementation of the project
activity.
In case of hydro power plants, one of the
following conditions must apply:
The project activity is implemented in
an existing reservoir, with no change
in the volume of reservoir; or
The project activity is implemented in
an existing reservoir, where the
volume of reservoir is increased and
the power density of the project
activity, as per definitions given in the
Project Emissions section, is greater
than 4 W/m2; or
The project activity results in new
reservoirs and the power density of the
power plant, as per definitions given in
the Project Emissions section, is
greater than 4 W/m2.
In case of hydro power plants using multiple
reservoirs where the power density of any of
the reservoirs is lower than 4 W/m2 all the
following conditions must apply:
The power density calculated for the entire
project activity using equation 5 is greater
than 4W/m2;
Multiple reservoirs and hydro power plants
located at the same river and where are
designed together to function as an
integrated project1 that collectively
constitute the generation capacity of the
combined power plant;
Water flow between multiple reservoirs is
not used by any other hydropower unit
which is not a part of the project activity;
Total installed capacity of the power units,
which are driven using water from the
reservoirs with power density lower than 4
W/m2, is lower than 15MW;
Total installed capacity of the power units,
which are driven using water from
This criterion is not applicable as the project

activity is a geothermal power plant.
This criterion is not applicable to the proposed

project activity since the project activity is the
installation of a new geothermal power plant.

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6.
reservoirs with power density lower than 4

W/m2, is less than 10% of the total installed
capacity of the project activity from
multiple reservoirs.
In the case of retrofits, replacements, or
capacity additions, this methodology is only
applicable if the most plausible baseline
scenario, as a result of the identification of
This condition is not applicable since the
baseline scenario, is the continuation of the
project activity is the installation of a new
current situation, i.e. to use the power
geothermal power plant.
generation equipment that was already in use
prior to the implementation of the project
activity and undertaking business as usual
maintenance.
The version of the methodology is not applicable under the following conditions:
S. No.
Criteria
Project activities that involve switching from
fossil fuels to renewable energy sources at the
site of the project activity, since in this case
the baseline may be the continued use of
fossil fuels at the site;
Justification
The project activity is a greenfield geothermal
power plant and hence is applicable under the
methodology.
The project activity is a geothermal plant and
hence is applicable under the methodology.
Biomass fired power plants;
Hydro power plants that result in new

reservoirs or in the increase in existing The project activity is a geothermal plant and
reservoirs where the power density of the hence is applicable under the methodology.
power plant is less than 4 W/m2.
The project activity therefore fulfils all the above conditions and hence is applicable under the chosen
methodology ACM0002, version 12.2.0.
In addition, the project activity meets the applicability conditions included in the tools referred to as
follows:
Applicability conditions of Tool to to calculate the emission factor for an electricity system version
02.2.1:
S. No.
1.
Criteria
This tool may be applied to estimate the OM,
BM and/or CM when calculating baseline
emissions for a project activity that substitutes
grid electricity, i.e. where a project activity
supplies electricity to a grid or a project
activity that results in savings of electricity
that would have been provided by the grid
(e.g. demand-side energy efficiency projects).
Justification
The project activity supplies electricity to
Sumatera grid and hence this tool may be
applied to estimate the OM, BM, and CM
when calculating the baseline emissions for
the project activity.

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2.
3.
Under this tool, the emission factor for the

project electricity system can be calculated
either for grid power plants only or, as an
option, can include off-grid power plants. In
the latter case, the conditions specified in
Annex 2 - Procedures related to off-grid
power generation. should be met. Namely, the
total capacity of off-grid power plants (in
MW) should be at least 10% of the total
capacity of grid power plants in the electricity
system; or the total electricity generation by
off-grid power plants (in MWh) should be at
least 10% of the total electricity generation by
grid power plants in the electricity system;
and that factors which negatively affect the
reliability and stability of the grid are
primarily due to constraints in generation and
not to other aspects such as transmission
capacity.
In case of CDM projects the tool is not
applicable if the project electricity system is
located partially or totally in an Annex I
country.
The emission factor the project electricity

system is calculated for grid power plants
only.
The project electricity system (Sumatera Grid)

is not located partially or totally in an Annex I
country.
Applicability condition of Tool to calculate project or leakage CO2 emissions from fossil fuel combustion
version 02:
S. No.
Criteria
This tool provides procedures to calculate
project and/or leakage CO2 emissions from the
combustion of fossil fuels. It can be used in
cases where CO2 emissions from fossil fuel
combustion are calculated based on the
quantity of fuel combusted and its properties.
Methodologies using this tool should specify
to which combustion process j this tool is
being applied.
Justification
In the case of the project activity, the CO2

emissions from fossil fuel combustion are
calculated based on the quantity of diesel oil
combusted for electricity generation in the
geothermal power plant.

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B.3.
Description of the sources and gases included in the project boundary
>>
As per the applied methodology the project boundary is defined as:
The spatial extent of the project boundary includes the project power plant and all power plants
connected physically to the electricity system that the CDM project power plant is connected to.
The boundary of the proposed project activity includes the project activity and all the other power plants
connected to the Sumatera grid of Indonesia. The project boundary is clearly shown in the below
diagram:
Geothermal
steam
NCG
End
users
All power
plants
connected to
Sumatera Grid
Unit 1
Unit 2
Project boundary
Project power plant
Emergency diesel generator
Emergency case
Monitoring variables
Figure.B.3.1.Project Boundary
The greenhouse gases and emission sources included in or excluded from the project boundary are shown
in the table below from the applicable methodology:
BASELINE
Emissions sources included in or excluded from the project boundary

Source
Gas Included?
Justification/ Explanation
CO2
emissions
from CO2 Yes
This gas is included in the project boundary as
electricity generation in
this was produced in the baseline by the
fossil fuel fired power
operation of fossil fuel fired power plants
plants that are displaced
connected to the Sumatera grid.
due to the project activity. CH4 No
The methodology considers this as a minor
emission source and hence has been excluded
for simplification.
N2O No
for simplification.

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For geothermal power CO2

plants, fugitive emissions
of CH4 and CO2 from nonCH4
condensable
gases
contained in geothermal
N2O
steam.
Yes
Main emission source
Yes
Main emission source
No
CO2 emissions from

combustion of fossil
fuels for electricity
generation in solar
thermal power plants and
geothermal power plants
CO2
Yes
CH4
No
N2O
No

for simplification.
Main emission source from the fossil fuel
combusted for emergency diesel generator.
This gas is included in the project emission and
will be monitored at actual.
for simplification.
for simplification.
B.4.
Description of how the baseline scenario is identified and description of the identified
baseline scenario:
>>
As described in the methodology, the baseline for greenfield renewable energy power plants is:
If the project activity is the installation of a new grid-connected renewable power plant/unit, the
baseline scenario is the following:
Electricity delivered to the grid by the project activity would have otherwise been generated by the
operation of grid-connected power plants and by the addition of new generation sources, as reflected in
the combined margin (CM) calculations described in the Tool to calculate the emission factor for an
electricity system.
Hence the baseline scenario is that the electricity delivered to the grid by the project activity would have
otherwise been generated by the operation of grid-connected power plants and by the addition of new
generation sources to the Sumatera grid in Indonesia.
To calculate the emission factor of the Sumatera grid, the data has been taken from the Agency for the
Assessment and Application of Technology- (BPPT) and Directorate General of Electricity and Energy
Utilization (DJLPE)5 under the Ministry of Environment of Indonesia as Indonesian DNA and the
approach specified in the Tool to calculate the emission factor for an electricity system, version 02.2.1 has
been adopted.
for determining the electricity emission factors, if the DNA of the host country has published a
delineation of the project electricity system and connected electricity systems, these delineations should
be used.
Recently changed into Directorate General of Electricity

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The parameter values are summarized below:

Parameter
Operating margin
Build margin
Combined margin
Value
(in tCO2/MWh)
0.905
0.581
0.743
The detailed calculations are presented in Annex 3.

B.5.
Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality): >>
>>
CDM Consideration
In line with the Guidelines on the demonstration and assessment of prior consideration of the CDM,
version 04 (Annex 13, EB 62), the project proponent have demonstrated that CDM was seriously
considered in the decision to implement the project activity.
Paragraph 2 of the guidelines states that for project activities with a starting date on or after 02/08/2008
the project participant must inform the Host Party DNA and the UNFCCC secretariat in writing of the
commencement of the project activity and of their intention to seek CDM status. Such notification must
be made within six months of the project activity start date. Hence, the project proponents have notified
the Indonesian DNA and the UNFCCC secretariat in writing of their intention to undertake the project
activity and seek CDM status. The prior consideration forms were sent and acknowledgements received
from both DNA (03/08/2010) and UNFCCC (02/07/2010) (please see UNFCCC website). The emails
and letters have been provided to the DOE during validation.
National/ Sectoral policies
There are currently no laws compelling an independent power producer (IPP) to develop geothermal
power plants in Indonesia; however the government does aim to increase the usage of both coal fired and
renewable energy plants in national energy consumption, which includes geothermal6. To meet, the rapid
growing demand of energy, two fast track programs had been announced, in which First Fast Track
Program established new coal based electricity generation with a total capacity of 10,000 MW; whilst the
Second Fast Track Program consisted of over 52% new capacity from renewable resources, in particular
approximately 4,000 MW or 40% from geothermal resources and 12% from hydro resources. The
Second Fast Track Program, to be realized in the period of 2009-2014, also aims to increase the access to
electricity in the outer islands outside the islands of Java and Bali. To move towards this program and
policy, from year 2007 to the present time, the Government of Indonesia has established more laws and
regulations to encourage the development of renewable energy, with the issuance of Presidential Decree
Presidential Regulation (2006) Kebijakan Energi Nasional (National Energy Policy), [Online] Presidential
Regulation No. 5/2006, in effect since 25 January 2006, Available from:
http://www.djpp.depkumham.go.id/inc/buka.php?czoyMzoiZD0yMDAwKzYmZj1wczUtMjAwNi5odG0iOw==

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No. 04/20107 followed by Regulation of Ministry of Energy and Mineral Resources No. 02/20108,
regarding the accelerated development of renewable energy projects, including the geothermal plants.
Some of the regulations were found relevant to the project activity, such as the regulation on the
electricity tariff for geothermal power plant9, and Government regulation No. 1/2007 and its addendum in
Government regulation No. 62/2008, which stipulated the incentives available to an IPP for setting up of
a geothermal power plant (accelerated depreciation, investment allowances, dividend tax and loss carry
forward). These incentives have been considered in the investment analysis.
The following section demonstrates that the project activity is not a part of the baseline scenario by
drawing on version 06.0.0 of Tool for the demonstration and assessment of additionality for
demonstration of additionality.
Applicable geographical area covers the entire host country of Indonesia.
Step 1: Identification of alternatives to the project activity consistent with current laws and
regulations
Sub-step 1a: Define alternatives to the project activity:
As per the Tool for the demonstration and assessment of additionality version 06.0.0, project activities
that apply this tool in context of approved consolidated methodology ACM0002, only need to identify that
there is at least one credible and feasible alternative that would be more attractive than the proposed
project activity.
The demonstration of the baseline scenario (in section B.4.) incorporated the steps contained within this
section and the plausible baseline scenarios correspond to the alternatives that are related to technology
and circumstances as well as to the investor. The project activity is being set up by an Independent Power
Producer (IPP) and hence in the absence of the project activity the plausible alternatives are mentioned
below. Other alternatives like coal, wind, hydro power plants etc have not been considered plausible
alternatives in the case of the project activity since as per the additionality tool these are not alternatives
for an IPP (see footnote 7 of the Tool for the demonstration and assessment of additionality version
06.0.0). In the case the project activity was being set up by a public utility, these would have been
plausible alternatives. However since the project is being set up by an IPP, the plausible alternatives are
limited to:
1. The proposed project activity undertaken without CDM i.e. the construction of a new geothermal
power plant of 234 MW connected to the Sumatera grid, implemented without CDM status.
Presidential Decree No. 4/2010 - the Assigment to PLN for the Accelerated Development of Renewable Energy
Projects, 8 January 2010
8
Regulation of Ministry of Energy and Mineral Resources No. 2/2010- List of Accelerated Development of
Renewable Energy Projects, 27 January 2010, superseded by Regulation of Ministry of Energy and Mineral
Resources No. 15/2010
9
Regulation of Indonesian Minister of Energy and Mineral Resources No. 32/ 2009, superseded by Regulation of
Ministry of Energy and Mineral Resources No. 02/2011

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page 18
Under this scenario the project will generate low emission power and cause emission reduction by
displacing equivalent power generation from fossil fuels. However, the project cannot be implemented
without CDM benefits due to the investment barrier, which is analyzed in detail under Step 2.
2. Continuation of the current situation i.e. electricity will continue to be generated by the existing
generation mix operating in the Sumatera grid.
Under this alternative, the increasing demand of electricity would be met by increasing the installed
capacity through the possible expansion of existing power plants as well as construction of new power
plants in accordance with the current policies and regulations of host country, Indonesia. This is a
realistic and credible scenario.
In conclusion the feasible alternative scenario for the project activity is Alternative (2).
Sub-step 1b: Consistency with mandatory laws and regulations:
The alternative outlined above conforms to the local and national policies and hence is credible.
Step 2: Investment analysis
The investment analysis has been undertaken in compliance with EB62 Annex 05 -Guidelines on the
Assessment of Investment Analysis, Version 05.0.
Sub-step 2a: Determine appropriate analysis method
As established in Section B.4, in the absence of the project activity the electricity would have been
supplied to third party users from operational or planned generation in the Sumatera grid. No investment
has to be made by the independent power producer (IPP) in the absence of this geothermal power project.
Therefore as per paragraph 19, Annex 05, EB 62, Guidelines on the assessment of investment analysis, a
benchmark approach is considered appropriate for the project activity. Hence Option III, benchmark
analysis has been used to demonstrate additionality for the project activity.
Sub-step 2b: Option III. Apply benchmark analysis
To analyze the feasibility of the project, the project proponent has conducted a project internal rate of
return (IRR) analysis and compared it with a suitable benchmark.
The project activity could be implemented by an entity other than the project participant and hence a
standard market benchmark is suitable. The Indonesian Ministry of Finance together with the Japan
International Cooperation Agency (JICA) and West Japan Engineering Consultants, Inc. published a
Study on Fiscal and Non-fiscal Incentives to Accelerate Private Sector Geothermal Energy Development
in the Republic of Indonesia, in July 2009. The study has determined that the Project IRR should be a
minimum of 17.10% for an IPP to invest in a geothermal power project in Indonesia10. The benchmark
presented in the study of JICA has been derived from a WACC (weighted average cost of capital)
10
Page 6-13 of Fiscal and Non-fiscal Incentives to Accelerate Private Sector Geothermal Energy Development in
the Republic of Indonesia, in July 2009

CDM Executive Board
page 19
calculation, using parameters that are standard in the market. This study is supplied by relevant national
authority and it is applicable to the project activity and the type of IRR calculation. This is selected as a
transparent and conservative appropriate benchmark.
The domestic capability of the host country is weak in almost all the major areas of geothermal
development from resource identification to operation of geothermal power generation facilities. The
level of domestic participation in all parts of the value chain of geothermal resource development is low,
and project costs remain high as a result. Geothermal energy development involves various kinds of risks
since it is a development of underground resources. Technically, each stage of geothermal project
activity has some risks, as follows:
a) Exploration stage cost overruns due to access road construction difficulty, geographical problems
and unfavorable drilling success rate etc.
b) Development stage cost overruns due to depth of production wells, capacity of production wells,
characteristics of the geothermal fluid, non-condensable gas concentration, unfavorable
production well drilling success rate, and construction material price increases etc.
c) Operation stage degradation of performance due to faster than expected declines in wellhead
pressure and/or flow rates etc.
Indonesia has abundant potential geothermal resources of about 28,000 MW but less than 4% has been
utilized. Since the early 1970s, the Government of Indonesia has made efforts to promote geothermal
resources. It has done this through the appointment of PT Pertamina, the National Energy Company to
conduct exploration, exploitation, and utilization of steam from geothermal resources to produce energy.
This was regulated based on the Presidential Decree No.16/1974, Presidential Decree No.22/1981,
Presidential Decree No.23/1981, Presidential Decree No. 45 in 1991 and Presidential Decree No.49/1991.
Yet despite this change, geothermal development remains a small contributor to overall power generation.
The private sector is hesitant to invest in the sector due to legal uncertainty, amongst other risks discussed
above.
In the early to mid-1990s, private sector contracts committed to provide close to half of the national target
of geothermal power. These contracts were made by entering into Joint Operation Contracts (JOCs) with
state owned oil and gas company PT Pertamina and Power Purchase Agreements (PPAs) with PT PLN.
However, the 1997 Financial Crisis caused a number of contracts to be suspended, cancelled or
renegotiated.
Since the Financial Crisis, private developers and lenders have hesitated to invest in geothermal business
due to a lack of trust in the existing legal framework in protecting business arrangements and contracts
and uncertainty on taxation regulations. The law No. 44 of 1960 on Oil and Gas used to regulate the
geothermal sector but the new Oil and Gas Law, passed on 23/10/2001, removed geothermal development
as an area of oil and gas regulation. In 2003, Parliament passed a Geothermal Law, supplemented by a
number of implementing regulations. However, certain voids still exist in the regulatory framework,
resulting in lack of clarity and certainty for the investors.
Despite a flurry of government initiatives in the last few years two critical issues remain unaddressed:
a) The environmental benefits and the high initial cost of developing geothermal power, compared
with building coal fired power plants, meaning that economic incentives for harnessing the
benefits and bridging the cost gap are needed to promote investments in geothermal power. The

CDM Executive Board
page 20
high initial capital investment includes initial exploration and the commitment to purchase a large
portion of the eventual fuel supply at start-up in the form of development wells. Thus,
geothermal contracts require base load status and long term price security in order to justify
development. A guarantee from government is required to ensure that PLN will meet its
obligations because PLN still survives on government subsidy.
b) The exploration risks associated with developing upstream geothermal resources, which, without
proper mitigation mechanisms or compensation, often deter investments in the sector.
In addition to the above, geothermal energy development involves significant risks during the surface
survey, resource confirmation and development stages. Since a project has little chance of obtaining
financial support in the early stages, its early stage development needs to be conducted with equity alone
and the project developer needs to bear all the risks. Only after a certain level of progress has been made
on the project, the project can apply for funding from banks.
Sub-step 2c: Calculation and comparison of financial indicators (only applicable to Options II and
III):
The financial calculations presented for the IRR analysis include all the relevant revenues and costs
associated with the project. The project activitys only source of revenue is the sale of generated
electricity to PT PLN. All the assumptions have been taken from the various studies prepared for the
project activity during the investment decision process of the project activity which have been compiled
in the P85 investment decision document. In line with the paragraph 3 of the guidance on investment
analysis, the project IRR analysis has been done for a period of 30 years in accordance with the technical
lifetime of the project actvity.
As mentioned in Section A.2, the concentration of non-condensable gases and the thermodynamic
characteristics of the geothermal fluid (enthalpy in particular), the injectivity of the injection wells, the
exact depth and success rate of the production wells, the EPC and financing costs and many other
parameters are not known today. These variations and uncertainties all contribute to the high risk of this
project which is borne by the project owner.
The project IRR without taking into account CER revenues is 11.36% which is below the chosen
conservative benchmark of 17.10%, thus the project activity is found to be financially unattractive for the
project owner to undertake.
Project IRR without CDM
Benchmark
11.36%
17.10%
The investment analysis has been carried out following the most recent guidance on investment analysis.
The land cost has not been depreciated and added back as revenue at the end of the assessment period.
All the input parameters were applicable at the time of investment decision and conservative values have
been taken. The input parameters of the investment analysis have been highlighted in the table below
with their sources:
S.
No.
1
Parameter
Unit
Value
Source
Plant Installed capacity
MW
234
P85 investment decision

CDM Executive Board
page 21
Plant net capacity
MW
220
Annual electricity for sale (90%

of production at Plant net
capacity)
Electricity tariff
MWh
1,734,480
c.USD/kWh
9.40
Royalty to be given to
government
% of gross
revenue
2.50
90
Take or Pay (ToP) energy of net

capacity
Operation & Maintenance cost
c.USD/kWh
1.20
Overhead cost
c.USD/kWh
0.12
Make up wells
6.50
10
Major well work-over
11
Plant overhaul
12
Corporate Income Tax
USD
million/well
(Every 5
years)
USD million
/well (Every 3
years)
USD million
/year (Every 3
years)
%
13
Tax incentive for Dividend
10
14
Depreciation
Year
15
Accelerated depreciation rate
25%
16
17
Inflation
Portion of electricity tariff to be
%
%
2.92%
25%
document
document
document/calculated
document
Letter of Directorate General
of Mineral, Coal and
Geothermal No.
496/84/DJB/2008
regarding proposal of new
regulation to supersede
Government Regulation
No.45/2003
document
document
document
document
1.20

document

document
25
Law No. 36/2008 on Income

Tax
Government Regulation on
Tax No. 1/2007 superseded by
Tax No.62/2008
Tax No.62/2008
Tax No.62/2008
US CPI

CDM Executive Board
page 22
18
escalated
Tariff escalation per year
2.30%
USD million
794.00
22
Investment cost (excluding total

sunk costs of 3.66 USD million
of feasibility study and geology
and geophysic study costs)
Debt ratio before construction
Equity ratio before construction
Debt ratio during construction
Equity ratio during construction
Interest rate
%
%
%
%
%
0%
100%
65%
35%
6.76%
23
24
Grace period
Repayment period
Year
Year
1
7
25
Phasing of equity financing
Year
26
Phasing of debt financing
Year
2 (before
constructio
n)
2 (during
constructio
n period)
19
20
21
document
US PPI, (average value of last
24 years used in the forecast)
document

document
document
The available interest rate at
Central Bank of Indonesia for
investment loan in the period
of March 2009 end of
February 2010
http://www.bi.go.id/seki/tabel/
TABEL1_27.xls
Loan term as per lending
option available for the
construction and operation
stage of a geothermal power
project 11
document
document
Sub-step 2d: Sensitivity analysis

The robustness of the conclusion drawn above has been tested by subjecting critical assumptions to
reasonable variations. The sensitivity analysis has been done in accordance with EB 62, Annex 05
Guidelines on the Assessment of Investment Analysis paragraph 20 and 21. The project IRR of the
proposed project activity is driven by the following variables:
1. Investment cost
2. Tariff
3. Operation and Maintenance cost
11
http://www.nrel.gov/geothermal/financing/construction.html.
A mini-perm loan is a senior debt facility with a term that is longer than typical bank debt but shorter than longterm permanent facilities. These facilities are typically payable over five to seven years and include a balloon
payment at the end of the facility. In this case, the facility has a 7-year term: 2 years of construction and 5 years of
production.

CDM Executive Board
page 23
4. Electricity generation
The impacts were analyzed in the range of 10% and the corresponding impacts have been highlighted in
the tables and graphs below.
Investment cost
The investment cost has been given a variation of -15% and +35% as per the accuracy estimation of the
investment cost suggested by the underlying Preliminary Development Plan which is considered more
appropriate in the case of the project activity. This variation has covered the 10% range suggested by
the Guidelines on the Assessment of Investment Analysis. The results of the variation are tabulated
below:
Variables
Investment cost

-15%
0%
35%
13.56% 11.36%
7.87%
Tariff
The tariff will not increase since the base tariff has been fixed as per the Solok Selatan Regency Decree
No. 540/01/DESDM/Bup-2010. However to be conservative the parameter has been given a variation of
10% as per the investment guidance. The results of the variation are tabulated below:
Variables
Base Tariff

-10%
0%
10%
9.75% 11.36% 13.08%
Operation and Maintenance cost

The operation and maintenance cost affects the IRR of the project activity as decrease in the cost would
allow an increase in the revenues associated with the project activity. The operation and maintenance
cost has been given a variation of 10% and the results are tabulated below:
Variables
Operational and Maintenance Cost

-10%
0%
10%
11.67% 11.36% 11.06%
Electricity generation
This variable covers the possibility of increase or decrease of the electricity generation by 10% of the
contractual Take or Pay (ToP) offtake level. The results of the variation are tabulated below:
Variables
Electricity generation

-10%
0%
10%
10.12% 11.36% 12.76%
It is evident from the above that even under the most optimistic conditions; the project IRR does not cross
the chosen benchmark.

CDM Executive Board
page 24
Step 3: Barrier analysis

Investment analysis has been undertaken.
Step 4: Common practice analysis
Common practice analysis acts as a credibility check to complement the investment analysis done in Step
2. According to the Tool for the demonstration and assessment of additionality version 06.0.0
Projects are considered similar if they are in the same country/region and/or rely on a broadly similar
technology, are of a similar scale, and take place in a comparable environment with respect to regulatory
framework, investment climate, access to technology, access to financing, etc.
The common practice analysis is discussed through the following sub-steps:
Sub-step 4a: Analyze other activities similar to the proposed project activity:
The identification of similar activities has focused on the operational geothermal power plants in
Indonesia at the time the investment decision was taken for the project activity. The host country,
Indonesia, is chosen as the appropriate region and applicable geographical area for comparison of power
plants. The analysis excludes the geothermal power plants which have been published on the UNFCCC
website for global stakeholder consultation or already registered with the UNFCCC.
For measures that are listed in paragraph 6 of version 06.0.0 of Tool for the demonstration and
assessment of additionality:
Step 1: Calculate applicable output range as +/- 50% of the design output capacity of the proposed
project activity.
The proposed project activity has a design output of 220 MW, and therefore the applicable output range is
110 MW 330 MW.
Step 2: In the applicable geographical area, identify all plants that deliver the same output or capacity,
within the applicable output range calculated in Step 1, as the proposed project activity and have
started commercial operation before the start date of the project. Note their number Nall. Registered
CDM project activities and project activities undergoing validation shall not be included in this step.
For the common practice analysis, the project proponents have taken the data published by Dewan
Nasional Perubahan Iklim (DNPI, National Council on Climate Change) on 17/03/2010 which contained
the list of all power plants operational in Indonesia. In total there were 30 power plants in Indonesia that
had started commercial operation before the start date of the project and that are within the applicable
output range (Nall = 30). The list is provided below:
No
Grid
connection
Power Plant
Owner
Fuel
Operating
year
Installed
capacity
(MW)

CDM Executive Board
page 25
1.
3.
4.
5.
6.
7.
8.
South and
Central
Kalimantan
grid
Sultanbatara
grid
Sumatera grid
Sumatera grid
Sumatera grid
Sumatera grid
Sumatera grid
Sumatera grid
9.
10.
11.
Sumatera grid
Sumatera grid
Sumatera grid
Basam 3&4
GT-22 Belawan
ST-20 Belawan
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23
24.
25.
26.
Sumatera grid
Sumatera grid
Sumatera grid
Sumatera grid
Sumatera grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
Jamali grid
GT-11 Belawan
Belawan 3&4
GT-12 Belawan
Basam
Belawan
GT- Cilegon Unit 1and 3
Tambak Lorok unit 3
GT-Tambak Lorok Unit 4
GT-Tambak Lorok Unit 8
Gilimanuk
Gresik baru phase 1-unit 4
Grati blok 1
Wayang windu Unit 1
27.
Jamali grid
Cikarang
28.
Jamali grid
Salak phase 1
29.
Jamali grid
Salak phase 2
2.
Asam-Asam
PLN
Coal
2000
130
Bakaru
PLN
Hydro
1990
126
Borang
Pekan Baru
Singkarak
Ombilin 1
GT-21 Belawan
ST-10 Belawan
IPP
PLN
PLN
PLN
PLN
PLN
2004
1998
1998
1996
1995
1995
150
114
175
200
130
149
1994
1994
1994
130
130
162.6
1993
1989
1988
1987
1984
2006
1993
1993
1993
1997
1990
1990
1990
1964
2000
117.5
130
128
130
130
180
192
176
176
133
180
170
180
165
110
1993
150
1994
3 x 60
1997
3 x 66.7
Gas
Hydro
Hydro
Coal
Gas turbine
Steam
turbine
PLN
Coal
PLN
Gas turbine
PLN
Steam
turbine
PLN
Gas turbine
PLN
Coal
PLN
Gas turbine
PLN
Coal
PLN
Diesel
PLN
Gas
PLN
Coal
PLN
Gas
PLN
Gas
PLN
Gas
PLN
Gas
PLN
Gas
PLN
Gas
PLN
Gas
Star Energy Geothermal
(JOC with
Pertamina)
PT.
Gas
Cikarang
Listrindo
Chevron
Geothermal
Geothermal
Indonesia
(JOC with
Pertamina)
Chevron
Geothermal
Geothermal
Indonesia
(JOC with
Pertamina)

CDM Executive Board
page 26
30.
Jamali grid
Kamojang Unit 2&3
PT.PLNPT
Pertamina
Geothermal
1987
2 x 55
Step 3: Within plants identified in Step 2, identify those that apply technologies different that the
technology applied in the proposed project activity. Note their number Ndiff.
Indonesia has 8 types of power plants, namely geothermal, hydro, mini hydro, diesel, gas, coal, gas
turbine, and steam turbine.
As per the definition of different technologies in paragraph 9 of Tool for the demonstration and
assessment of additionality version 06.0.0, all the power plants of hydro, mini hydro, diesel, gas, coal, gas
turbine and steam turbine have different energy source/ fuel and hence are different from the project
activity.
There are four (4) geothermal projects identified from Step 2 that satisfy the same fuel condition as the
project activity and are in the applicable output range as described in Step 1 above, namely Wayang
Windu 1, Salak phase 1, Salak phase 2, and Kamojang Unit 2&3. However, as also defined in the version
06.0.0 of Tool for the demonstration and assessment of additionality, one of the aspects which
differentiates between similar project activities which have the same output delivery is the investment
climate on the date of the investment decision, inter alia: access to technology; subsidies or other financial
flows; promotional policies; and legal regulations. The four identified geothermal projects differ from the
project activity as below:
1. Wayang Windu 1 - It was developed by Magma Nusantara Limited (MNL) under the JOC with
PT Pertamina. Due to the Asian Economic crisis the project was handed over to the bank
creditors (Credit Suisse First Boston and Deutsche Bank) following its failure to repay loans in
2001. In 2005, Star Energy, a domestic oil company acquired the project from the bank and
operates it since then. It is evident that the project was initially implemented by state owned
company and later taken over by the bank due to financial unattractiveness of the project. Hence
the project is not similar to the proposed project activity at Muara Laboh which is being
developed by private investment.
2. Salak Phase I It was built by PT PLN which is a state owned company and had better access to
financing thereby reducing the risks associated with the implementation of the project activity.
Hence the power plant is not found comparable to the proposed project activity.
3. Salak Phase II It was constructed under the Joint Operation Contract (JOC) between Unocal
Geothermal of Indonesia Ltd and PT Pertamina. Since 2006, Unocal was acquired by PT
Chevron which took over the operation and maintenance of the steam field. Since this power
plant also had access to financing due to the involvement of the state owned company, PT
Pertamina, hence is not similar to the proposed project activity.
4. Kamojang Unit 2&3- The power plants have had better access to financing due to the ownership
of state owned company. Furthermore Kamojang Unit 2 and 3 have been financed by the World
Bank and hence not similar to the project activity which is promoted by an IPP.
Since the above four (4) identified projects are also proven to be different from the proposed project
activity in respect of their ownership structure and investment conditions and climate, the identified
number of Ndiff is noted as 30.

CDM Executive Board
page 27
Step 4: Calculate factor F=1-Ndiff/Nall representing the share of plants using technology similar to the
technology used in the proposed project activity in all plants that deliver the same output or capacity
as the proposed project activity. The proposed project activity is a common practice within a sector in
the applicable geographical area if the factor F is greater than 0.2 and Nall-Ndiff is greater than 3.
Drawing on the result of previous steps, Nall = 30, and Ndiff = 30, thus factor F=1-Ndiff/Nall is calculated as
zero.
As per paragraph 9 of the guideline The proposed project activity is a common practice within a
sector in the applicable geographical area if the factor F is greater than 0.2 and Nall-Ndiff is greater than
3. However, since in the case of the project activity F = 0 and Nall-Ndiff = 0, therefore the project activity
is concluded not a common practice in the applicable geographical area i.e. the host country Indonesia.
Sub-step 4b: Discuss any similar Options that are occurring

No similar power plants were found to operate in the host country.
Based on the above steps, it can be established that the project activity is additional and requires CDM
revenues for its successful implementation.

CDM Executive Board
page 28
B.6.
Emission reductions:
B.6.1. Explanation of methodological choices:

>>
Baseline emissions
Baseline emissions include only CO2 emissions from electricity generation in fossil fuel fired power
plants that are displaced due to the project activity. The methodology assumes that all project electricity
generation above baseline levels would have been generated by existing grid-connected power plants and
the addition of new grid-connected power plants.
The baseline emissions are calculated as follows:
BE y = EGPJ , y EFgrid ,CM , y

Where:
BEy
EGPJ,y
EFgrid,CM,y
(1)
Baseline emissions in year y (tCO2/yr)

Quantity of net electricity generation that is produced and fed into the grid as a result of
the implementation of the CDM project activity in year y (MWh/yr)
Combined margin CO2 emission factor for grid connected power generation in year y.
This is calculated using the latest version of the Tool to calculate the emission factor for
an electricity system (tCO2/MWh)
Calculation of EGPJ,y
The project activity is a Greenfield renewable energy project. Hence the net electricity generation is
calculated as follows:
EGPJ , y = EG facility, y
Where:
EGPJ,y
EGfacility,y
(2)
Quantity of net electricity generation that is produced and fed into the grid as a result of
the implementation of the CDM project activity in year y (MWh/yr)
Quantity of net electricity generation supplied by the project plant/unit to the grid in year
y (MWh/yr)
Project emissions
For most renewable power generation project activities, PEy = 0. However some project activities such
as geothermal power plants may involve project emissions. These emissions shall be accounted for as
project emissions by using the following equations from the applied methodology:
PE y = PE FF , y + PEGP, y + PE HP, y
Where:
PEy
PEFF,y
(3)
Project emissions in year y (tCO2e/yr)

Project emissions from fossil fuel consumption in year y (tCO2/yr)

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page 29
PEGP,y
PEHP,y
Project emissions from the operation of geothermal power plants due to the release of
non-condensable gases in year y (tCO2e/yr)
Project emissions from water reservoirs of hydro power plants in year y (tCO2e/yr)
Since the project activity is not a hydro power plant, the project emissions from water reservoirs are not
considered further.
Fossil Fuel Combustion (PEFF,y)
For geothermal power plants which also use fossil fuels for electricity generation, CO2 emissions from the
combustion of fossil fuels shall be accounted for as project emissions (PEFF,y ). Small amounts of High
Speed Diesel (HSD) will be fired in emergency generator set to start-up the turbines and to provide backup electricity in case of blackout or turbine-trip. For ex-ante emissions the project emissions from the
diesel combusted in the diesel generator has been considered zero. The parameter will be monitored expost and the project emissions taken into account at actual.
These project emissions will be monitored and will be calculated as per the Tool to calculate project or
leakage CO2 emissions from fossil fuel combustion, version 02, using the following equations:
PE FF , y = PE FC , y
PE FC , y = FC y COEFy
(4)
(5)
Where:
PEFC,y
FCy
COEFy
CO2 emissions from diesel combustion in process, during the year y (tCO2/yr)
Quantity of diesel combusted in the process, in year y (mass or volume unit/yr)
CO2 emission coefficient of diesel, in year y (tCO2/mass)
Option B of the tool is chosen to calculate the CO2 emission coefficient COEFy based on net calorific
value and CO2 emission factor of the fuel type, as follows:
COEF y = NCV y EFCO 2 , y

Where:
NCVy
EFCO2,y
(6)
Weighted Average net calorific value of diesel in year y (GJ/m3)

CO2 emission factor of diesel (tCO2/GJ)
Emissions of non-condensable gases from the operation of geothermal power plants (PEGP,y )
For geothermal project activities, the fugitive emissions of carbon dioxide and methane due to release of
non-condensable gases from produced steam shall be taken into account. Non-condensable gases in
geothermal reservoirs usually consist mainly of CO2 and H2S. They also contain a small quantity of
hydrocarbons, including predominantly CH4. In geothermal power projects, non-condensable gases flow
with the steam into the power plant. A small proportion of the CO2 is converted to carbonate/ bicarbonate
in the cooling water circuit. In addition, parts of the non-condensable gases are reinjected into the
geothermal reservoir. However, as a conservative approach, the applied methodology suggests to assume
that all noncondensable gases entering the power plant are discharged to atmosphere via the cooling

CDM Executive Board
page 30
tower. Fugitive carbon dioxide and methane emissions due to well testing and well bleeding are not
considered, as they are negligible.
PEGP,y is calculated as follows:
PE GP , y = (wsteam ,CO 2 , y + wsteam ,CH 4 , y GWPCH 4 ) M steam , y
Where:
PEGP,y
wsteam,CO2,y
wsteam,CH4,y
GWPCH4
Msteam,y
(7)
non-condensable gases in year y (tCO2e/yr)
Average mass fraction of carbon dioxide in the produced steam in year y (tCO2/t steam)
Average mass fraction of methane in the produced steam in year y (tCH4/t steam)
Global warming potential of methane valid for the relevant commitment period
(tCO2e/tCH4)
Quantity of steam produced in year y (t steam/yr)
Leakage
No leakage emissions are considered. As per the methodolgy these emissions sources are neglected.
Emission reductions
Emission reductions are calculated as follows:
ER y = BE y PE y
Where:
ERy
BEy
PEy
Emission reductions in year y (tCO2e/yr)

Baseline emissions in year y (tCO2/yr)
Project emissions in year y (tCO2e/yr)
(8)

CDM Executive Board
page 31
B.6.2. Data and parameters that are available at validation:

Data / Parameter:
Data unit:
Description:
Source of data used:
Value applied
Justification of the
choice of data or
description of
measurement methods
and procedures actually
applied :
Any comment:
GWP,CH4
tCO2e/tCH4
IPCC 2006
For the first commitment period: 21 tCO2/tCH4
This is in accordance with the applied methodology ACM0002.
Data / Parameter:
Data unit:
Description:
EFgrid,CM,y
tCO2/MWh
Combined margin CO2 emission factor for grid connected power generation in
year y
Published data by BPPT
0.743
Calculated according to Tool to calculate the emission factor for an electricity
system, Version 02.2.1.

Value applied
choice of data or
description of
measurement methods
applied :
Any comment:
This parameter has been fixed ex-ante
Data / Parameter:
Data unit:
Description:
EFgrid,OM,y
tCO2/MWh
Operating margin CO2 emission factor for grid connected power generation in
year y
0.905 for ex-ante estimate of emission reductions.

Value applied
choice of data or
description of
measurement methods
applied :
Any comment:
Data / Parameter:
Data unit:
Description:
EFgrid,BM,y
tCO2/MWh
Build margin CO2 emission factor for grid connected power generation in year

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Value applied
choice of data or
description of
measurement methods
applied :
Any comment:
Data / Parameter:
Data unit:
Description:
Value applied:
choice of data or
description of
measurement methods
applied :
Any comment:
y
0.581 for ex-ante estimate of emission reductions.
Density of diesel oil

kg/m3
Density of diesel oil
Energy Statistics Manual, IEA, 2004 Table A3.8 page 181
843.9
Density of diesel oil = 843.9 kg/m3
B.6.3 Ex-ante calculation of emission reductions:

>>
Baseline Emissions
BE y = EGPJ , y EFgrid ,CM , y

EGPJ , y = EG facility, y
The net installed capacity of the power plant is 220 MW, with the Take or Pay (ToP) energy at 90% and
8760 operating hours, the annual net generation is 1,734,480 MWh/year.
EGfacility,y
= installed net capacity x operational hours x % Take or Pay

= 220 MW x 8760 hours/year x 90%
= 1,734,480 MWh/year
EFgrid,CM,y
= 0.743 tCO2/MWh (Sumatera Grid)
BEy
= 1,734,480 MWh/year x 0.743 tCO2/MWh

= 1,288,719 tCO2/year
Project emissions
Fossil Fuel Combustion (PEFF,y )

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PE FF , y = PE FC , y
PE FC , y = FC y COEFy
For ex-ante emissions the project emissions from the diesel combusted in the diesel generator has been
considered zero. The parameter will be monitored ex-post and the project emissions taken into account at
actual.
COEF y = NCV y EFCO 2 , y

COEFy
= 36.54 GJ/m3 x 0.0748 tCO2/GJ

= 2.73 tCO2/m3
PEFC,y
PEFC,y
= 0 m3/year x 2.73 tCO2/m3

= 0 tCO2/year
Emissions of non-condensable gases from the operation of geothermal power plants ( PEGP, y )
PE GP , y = (w steam ,CO 2 , y + w steam ,CH 4 , y GWPch 4 ) M steam , y

wsteam,CO2,y
wsteam,CH4,y
GWPCH4
Msteam,y
Average mass fraction of carbon dioxide in the produced steam in year y (tCO2/t steam)
Average mass fraction of methane in the produced steam in year y (tCH4/t steam)
(tCO2e/tCH4)
Quantity of steam produced in year y (t steam/yr)
PE GP , y = (w steam ,CO 2 , y + w steam ,CH 4 , y GWPch 4 ) M steam , y

PEGP,y = ( 0.018 tCO2/t steam + 0 tCH4/t steam * 21) * 16,405,027 t steam/year
= 295,290 tCO2/year
PE y = PE FF , y + PEGP , y
Where:
PE,y
PEFF,y
PEGP,y
Project emissions in year y (tCO2/yr)

Project emissions from fossil fuel consumption in year y (tCO2/yr)
non-condensable gases in year y (tCO2/yr)
Project emissions (PE,y ) = 0 tCO2/year +295,290 tCO2/year (High Entalphy case)

= 295,290 tCO2/year
Leakage
No leakage emissions are considered.

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Emission Reductions
ER y = BE y PE y
Emission reductions (ERy)
= 1,288,719 tCO2/year - 295,290 tCO2/year

= 993,428 tCO2/year
B.6.4 Summary of the ex-ante estimation of emission reductions:

>>
Estimation
Year
Estimation of
Estimation of
of leakage
project activity baseline emissions
(tonnes of
emissions
(tonnes of CO2e)
CO2e)
(tonnes of
CO2e)
18/09/2015-17/09/2016
295,290
1,288,719
0
18/09/2016-17/09/2017
295,290
1,288,719
0
18/09/2017-17/09/2018
295,290
1,288,719
0
18/09/2018-17/09/2019
295,290
1,288,719
0
18/09/2019-17/09/2020
295,290
1,288,719
0
18/09/2020-17/09/2021
295,290
1,288,719
0
18/09/2021-17/09/2022
295,290
1,288,719
0
Total tonnes of CO2e
2,067,033
9,021,033
0
B.7
Estimation of
overall emission
reduction (tonnes
of CO2e)
993,428
993,428
993,428
993,428
993,428
993,428
993,428
6,953,997
Application of the monitoring methodology and description of the monitoring plan:

B.7.1
Data and parameters monitored:
Data / Parameter:
Data unit:
Description:
Source of data to be
used:
Value of data applied
for the purpose of
calculating expected
emission reductions in
section B.5
Description of
measurement methods
and procedures to be
applied:
wsteam,CO2,y
tCO2/t steam
Average mass fraction of carbon dioxide in the produced steam in year y
Site records
0.018
Non-condensable gases sampling should be carried out in production wells and

at the steam field-power plant interface using ASTM Standard Practice E1675
for Sampling 2-Phase Geothermal Fluid for Purposes of Chemical Analysis (as
applicable to sampling single phase steam only).
The CO2 and CH4 sampling and analysis procedure consists of collecting noncondensable gases samples from the main steam line with glass flasks, filled
with sodium hydroxide solution and additional chemicals to prevent oxidation.
Hydrogen sulphide (H2S) and carbon dioxide (CO2) dissolve in the solvent
while the residual compounds remain in their gaseous phase. The gas portion is

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Monitoring frequency:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
for the purpose of
section B.5
Description of
measurement methods
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
for the purpose of
then analyzed using gas chromatography to determine the content of the

residuals including CH4. All alkanes concentrations are reported in terms of
methane.
At least every 3 months and more frequently, if necessary
As per ASTM Standard Practice E1675
All data collected as part of monitoring will be archived electronically and be
kept at least for 2 years after the end of the last crediting period.
w steam,CH4,y
tCH4/t steam
Average mass fraction of methane in the produced steam in year y
Site records
0
Non-condensable gases sampling should be carried out in production wells and

at the steam field-power plant interface using ASTM Standard Practice E1675
for Sampling 2-Phase Geothermal Fluid for Purposes of Chemical Analysis (as
applicable to sampling single phase steam only).
The CO2 and CH4 sampling and analysis procedure consists of collecting noncondensable gases samples from the main steam line with glass flasks, filled
with sodium hydroxide solution and additional chemicals to prevent oxidation.
Hydrogen sulphide (H2S) and carbon dioxide (CO2) dissolve in the solvent
while the residual compounds remain in their gaseous phase. The gas portion is
then analyzed using gas chromatography to determine the content of the
residuals including CH4. All alkanes concentrations are reported in terms of
methane
At least every 3 months and more frequently, if necessary
As per ASTM Standard Practice E1675
kept at least for 2 years after the end of the last crediting period.
Msteam,y
t steam/yr
Quantity of steam produced in year y
Site records
16,405,027

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section B.5
Description of
measurement methods
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
for the purpose of
section B.5
Description of
measurement methods
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
The steam flow in the main steam line from the separators wells should be
measured with a Venturi flow meter (or other equipment with at least the same
accuracy). Measurement of temperature and pressure upstream of the Venturi
meter is required to define the steam properties. The calculation of steam
quantities will be conducted on a continuous basis and should be based on
international standards. The measurement results will be summarized
transparently in regular production reports.
Daily
Calibration: following the technical specification/requirement of the
manufacturer but at least every three years
kept at least for 2 years after the end of the last crediting period. 100% of the
data will be monitored.
EGfacility,y
MWh/year
Quantity of net electricity generation supplied by the project plant/unit to the
grid in year y
Site records
1,734,480
There will be 2 bidirectional meters, main meter and check meter, located at
Substation of Muara Laboh Power Plant 150kV, with accuracy class of 0.2. The
measurement procedures to be applied are in compliance with the provisions of
the Power Purchase Agreement. The bidirectional meters will measure the
electricity export and the electricity import. The quantity of net electricity
supplied to the grid by the power plant will be calculated based on the
electricity export deducted by the electricity import.
Continuous measurement and monthly recording
Cross check measurement results with records for sold electricity and imported
electricity. The energy meters will be calibrated each year in line with the host
country accuracy level regulations.
FCy
m3/year
Quantity of diesel combusted in the process, in year y (diesel generator)
Onsite measurement
0

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page 37
for the purpose of

section B.5
Description of
measurement methods
applied:
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
for the purpose of
section B.5
Description of
measurement methods
applied:
Monitoring frequency
QA/QC procedures to
be applied:
Any comment:
Data / Parameter:
Data unit:
Description:
used:
for the purpose of
section B.5
A flow meter will be installed at the output of the diesel storage tank. The
reading will be taken every day and recorded in logbooks by operator.
Monitoring continuously and recording daily. The data will be aggregated

monthly.
The consistency of metered fuel consumption quantities should be crosschecked based on purchased quantities and stock changes. Calibration:
following the technical specification/requirement of the manufacturer but at
least every three years
NCVy
GJ/m3
Net calorific value of diesel in year y
Table 1.2, Chapter 1, Volume 2 (Energy) of the 2006 IPCC Guidelines on
National GHG Inventories
36.54
The IPCC data gives an NCV of 43.3TJ/Gg at the upper limit of the uncertainty
at a 95% confidence interval. The unit is then converted to 36.54 GJ/m3 by
multiplying it with diesel density of 843.9 kg/m3.
Any future revision of the IPCC Guidelines should be taken into account
EFCO2,y
tCO2/GJ
CO2 emission factor of diesel
Table 1.4, Chapter 1, Volume 2 (Energy) of the 2006 IPCC Guidelines on
National GHG Inventories
0.0748

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Description of
measurement methods
applied:
Monitoring frequency
QA/QC procedures to
be applied:
Any comment:
The IPCC data gives a value of 74,800 kg/TJ at the upper limit of the
uncertainty at a 95% confidence interval (CO2 emission factor). The units are
converted to tCO2/GJ.
Any future revision of the IPCC Guidelines should be taken into account
-

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B.7.2 Description of the monitoring plan:

>>
In accordance with the methodology, all the data collected during the crediting period will be archived
electronically and kept for at least two years after the end of crediting period. 100% of the parameters
mentioned in B.7.1 will be monitored (if not indicated differently) and the energy meters will be
calibrated annually to ensure low uncertainty in the monitored data.
Monitoring procedures
Emission reductions are claimed on the net electricity supplied to the Sumatera grid by the project
activity. The project owners will follow procedures laid by government entity PT PLN in the Power
Purchase Agreement to monitor the energy parameter. On the project emissions, the monitoring
procedures will follow the procedures as described in the tables of the section B.7.1 above. The power
plant manager will analyze the data every month and report to the head office.
The organisational set up for the CDM operational and monitoring management structure is described in
the following figure:
Head Office CDM Manager

Design, train, establish and manage the system of CDM
Responsible for the implementation and administration of
overall CDM project activity
Field Manager (Power Plant Manager)

Check the monthly aggregated data and report to the HeadOffice
Archive the aggregated data in electronic form for at least 2
years after the crediting period
Regularly back up the data
Project Supervisor
Aggregate data monthly and report to Field Manager
Manage the calibration of equipments
(Measure, record, archive)
Project Operators
measurement and recording
(measure, record, archive)
Figure. B.7.2.1 CDM operational and management structure

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Period of archiving
The data will be archived electronically every month and invoices of electricity sales to PT PLN will be
maintained. The project will employ highly skilled workers and periodic training of employees would
ensure that they are well equipped to handle emergency situations.
Calibration of monitoring equipment
The energy meters will be calibrated annually as per national standards and in compliance with the
provisions of the Power Purchase Agreement. The calibration of other monitoring equipment will follow
the technical specification/requirement of the manufacturer but at least once in every three years. The
calibration certificates will be made available to the DOE doing the periodic verification of the project
activity.
Training requirements
The suppliers of the equipments will train the staff in- charge to ensure that the equipment will be
efficiently maintained and correctly operated. Apart from this, the equipment supplier will provide
complete manuals and documentation providing details for the maintenance schedule and the required
activities associated with it. Periodic training will be undertaken at the project activity site to ensure
proper operation of the power plant and monitoring of the parameters.
B.8
Date of completion of the application of the baseline study and monitoring methodology and
the name of the responsible person(s)/entity(ies)
>>
25/03/2011
Bhawna Singh,
Agrinergy Pte Ltd
bhawna.singh@agrinergy.com

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SECTION C. Duration of the project activity / crediting period

C.1
Duration of the project activity:
C.1.1. Starting date of the project activity:

>>
15/08/201212
This refers to the indicative date of well drilling for the exploration activity.
C.1.2. Expected operational lifetime of the project activity:

>>
30y-00m
C.2
Choice of the crediting period and related information:

C.2.1. Renewable crediting period
Chosen crediting period

C.2.1.1.
Starting date of the first crediting period:
>>
18/09/2015 or the date of registration (whichever is later)
C.2.1.2.
Length of the first crediting period:
>>
7y-00mm
C.2.2. Fixed crediting period:
C.2.2.1.
Starting date:
C.2.2.2.
Length:
>>
Not Applicable
>>
Not Applicable
12
It is an indicative date and and as yet no real action has taken place in the project activity.

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SECTION D. Environmental impacts

>>
D.1.
Documentation on the analysis of the environmental impacts, including transboundary
impacts:
>>
The project activity has obtained the approval for its UPL (Environment Monitoring Plan)/ UKL
(Environment Management Plan) from Solok Selatan Regent as stated in Regent Head Decree
No.660.32.SK-UPL-UKL-V-2009. The approval dated 15/05/2009 has been provided to the DOE during
validation.
In general, the UPL/UKL consists of initial environment assessments, mainly focused at geothermal
exploration impact on air quality, noise intensity, and social economy aspect. When the exploration phase
is complete and the project activity proceeds to exploitation phase, more comprehensive and detailed
environment assessment will be presented in the form of AMDAL (Environment Impact Assessment)
document.
D.2.
If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
The project activity is a geothermal power project that utilizes steam from under earths surface. There
are no significant environmental impacts occurring as a result of its implementation.

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SECTION E. Stakeholders comments

>>
E.1.
Brief description how comments by local stakeholders have been invited and compiled:
>>
The local stakeholders meeting was carried out on 22/03/2011 at the Pauh Duo Solok Selatan
Subdistrict Office. Invitation letters were sent to the Chief of Villager and local authorities along with
publishing a notification in the local newspaper Singgalang on 12/03/2011 to invite the stakeholders to
the meeting.
The stakeholderss meeting was attended by 79 people comprising of:
- Local people
- Chief of village
- Local authorities
- The local legislative board members (DPRD)
- The representatives of Local official agencies of Environment (BAPPEDAL), Forestry, and
Energy and Mineral Resources
- The representatives of Dewan Nasional Perubahan Iklim (DNPI), Indonesian DNA.
- The representatives of PT. SEMLs management and staff
- PT Agrinergy Indonesia, as CDM consultants
The stakeholders meeting opened with a welcome speech by the representative of Local Legislative
Board Members, Mr. Yuzrisal Salta and a brief explanation about the project activity from Mr. Prijandaru
Effendi as VP. Commercial & Business Relations - PT. SEML, followed by welcome speech from Mr.
Andi Samyanugraha, as the representative of Indonesian DNA. Afterwards, Mr. Ismoyo Argo, as the
representative of PT. SEML presented the company profile, description of project activity, and its
environmental effects. This was followed by a presentation about Clean Development Mechanism and its
benefits to the project at PT. SEML by PT. Agrinergy Indonesia. The presentations described the project
activity in detail which allowed the local stakeholders to understand the project. After the presentations,
an interactive question and answer session was held.
The minutes of the meeting, photographs and signature of attendees will be provided to the validator
during the site visit.
E.2.
Summary of the comments received:
>>
Summary of the question and answer session during the stakeholder meeting is provided below:
No.
1.
Questions
Mr. Dali Himawan (Wali Nagari Local
Authorities)
We really support this project and request the
project owner to inform us earlier in terms of
number of employees required for the project
activity. We suggest that the employment should be
started from local people (Nagari), including the
land clearing process as well so that local
Response
Mr. Prijandaru Effendi (SEML)
We would like to convey that earlier we have
conducted socialization even since the
preliminary stage where we involved all
related parties. In regards to the SEMLs
contribution sharing, we will do this in
accordance with the central and local

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page 44
2.
3.
4.
5.
6.
authorities can give accurate information if there is governments procedures. For the local
any question or clarification required from community, represented by Wali Nagari, we
Provincial government.
will have negotiation together before the
project start and we will accommodate your
suggestion through our CSR program. In
terms of land clearing process, we have
carried it out with the assistance of Land
Clearing Committee established by the Local
Government which constitutes various
elements of society.
Mr. Akhirudin (Former Chief of Village)
Mr. Asrizal Masri (SEML)
The preliminary survey study has been done since According to the study result, the potential
long time ago but we never heard the result and location for the Geothermal PP lies at Liki
Village Pekonina is not included in the Geothermal Pinang Awan and Muara Laboh, but it does
Working Area (WKP)
not mean that we will understate its vicinity.
We also have company obligation towards
the closest society. Now, our team is
designing the precise location for the well
location.
Mr. Asrizal Masri and Mr. Prijandaru
Mr. M. Natsir
Effendi (SEML)
We really support the establishment of this Our team will design the precise location for
geothermal PP, however there was no invitation turbine and the power plant based on the
letter addressed to the elder community leaders. exploration study result later. However, now
Moreover, as per Wali Nagari, before the project we are focusing on the determination of wells
starts, please conduct the socialization from the location. The land clearing process will be set
community level. We would like to know the afterwards. Previously there were 30 people
precise location of the turbine which will be which had been dispatched to the project
installed at the project. We hope that Supreme can location and for the working visit, we will
facilitate the working visit for the local authorities discuss further with the Regent so that the
to the project location.
visit will be well represented and in time.
Mr. Noviardi Salha
The presentation slides showed us that this project Considering the previous event, we will
is big. You were saying that 30 people had been discuss with the government so that the
despatched, we hope that the despatched people working visit will be well-represented and
were the ones who have direct relationship with beneficial for local people. Thank you for the
local community and can convey us the result of the input.
visit, so that local community can be wellinformed. Please let us know when the project will
be started and how about the employment?
Mr. Bahrudin (Local Tradition and Community Mr. Asrizal Masri (SEML)
Committee)
Is there relation between the gas and mountain? Is If there is any potential of mountain eruption,
there any negative impact of the project to the the geothermal PP will not be built. All risks
mountain?
have been considered, including the
mountain history. If it is safe, then only the
project will be recommended.
Mr. Dasril Ahmad (local community)
Mr. Asrizal Masri and Mr. Prijandaru

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page 45
The exploration site will be at community area with

HGU (rights granted over State land to exploit the
area/soil) . There is a concern that there will be
forced evicitions to the community with HGU
status. Please explain to the government because
the areas are productive areas cultivated by people
and should be returned to the people. In addition,
what if there is human error in the geothermal
exploration process, like Lapindo case, what will
be the compensation for the affected people?
Effendi (SEML)
We have studied the impacts and risks of the
establishment. This case is different from
Lapindo. The risks of volcano and geological
aspects have been assessed, and the mud case
like Lapindo is unlikely to happen here. We
have collaborated as well with international
experienced parties and thus safety is
ensured.
If there is human error in the process, the
company will take responsibility, thus we
have done thoroughly pre-assessment to
mitigate the risks. If the exploration fails, we
will rehabilitate the areas to meet its original
conditions. For the HGU, we will discuss
further with the relevant parties.
Recruitment mechanism will be discussed
further in line with the available mechanism
with the relevant parties, including the elder
community leaders and religious leaders. For
the royalty, we will conduct it in accordance
with the central government regulation.
Supreme cannot interfere at the further
distribution. But for the local people, the
CSR program is under Supreme and will be
aimed for the local people. We will discuss
with the relevant parties to set the objective
of the programs.
Supreme will launch its representative office
in the project site soon. The exact location
will be determined after the survey is
completed.
Ms. Santy Dermawi (Agrinergy)
7.
Mr. Zulkifli (Local community)

About the royalty to the government, we hope that
the distribution can be started from the local
community, not central government. For the
employment, we hope that Supreme can establish a
labour union before recruitment so that the process
will be smooth.
8.
Mr. Saprudin (Local Community)

Where is the location of representative office of
Supreme ?
9.
Mr. Jon Kapi (Local official agency of Forestry)

How the carbon emissions can be reduced? In our
understanding, the carbon emissions reduction is The emission reduction of this project is
obtained through the tree planting.
calculated based on the renewable source of
electricity which displaces the fossil fuel
fired power generation in the regional grid. In
the absence of the project, the electricity
would be generated from Sumatera grid
which consists of mostly coal and diesel
power plants. Thereby the zero emissions
project will reduce the overall carbon dioxide
emissions.

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page 46
E.3.
Report on how due account was taken of any comments received:
>>
There were no objections or negative comments received from the stakeholders which required the
project owner to take specific action.

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page 47
Annex 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization:
Street/P.O.Box:
Building:
City:
State/Region:
Postfix/ZIP:
Country:
Telephone:
FAX:
E-Mail:
URL:
Represented by:
Title:
Salutation:
Last Name:
Middle Name:
First Name:
Department:
Mobile:
Direct FAX:
Direct tel:
Personal E-Mail:
PT Supreme Energy Muara Laboh

Sudirman Central Business District Lot #9
Jl. Jendral Sudirman Kav.52-53
Equity Tower, 18th Floor
Jakarta
DKI Jakarta
12190
Indonesia
+62 21 5155222
+62 21 5155333
Prijandaru Effendi
VP. Commercial & Business Relations
Mr.
Effendi
Prijandaru
effendi@supreme-energy.com; ismoyo-argo@supreme-energy.com

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page 48
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
The project activity does not involve any public funding.

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page 49
Annex 3
BASELINE INFORMATION
The data of emission factor of Sumatera grid is published by Indonesia DNA, which was calculated by
BPPT. The calculation of emission factor of Sumatera Grid was conducted based on Tool to calculate
the emission factor for an electricity system Version 02.2.1. The determination of the emission factor is
performed by following the steps below:
Step 1. Identify the relevant electricity systems.
According to PLNs actual grid structure, Sumatera grid covers NAD Province, North Sumatera Province,
Riau Province, Jambi Province, West Sumatera Province, South Sumatera Province and Lampung
Province. The project activity is located in West Sumatera province which is covered by Sumatera Power
Grid. Thus, the relevant electric power system is Sumatera Power Grid.
Step 2. Choose whether to include off-grid power plants in the project electricity system (optional).
Option I is chosen in this calculation that is only grid power plants are included in it.
Step 3. Select a method to determine the operating margin (OM).
The Tool to calculate the emission factor for an electricity system Version 02.2.1 offers four methods to
calculate the operating margin (OM):
a. Simple OM; or
b. Simple adjusted OM; or
c. Dispatch data analysis OM; or
d. Average OM
From 2003 to 2007, the low-cost/ must-run resources in Sumatera grid were 20.95%, 17.90%, 17.28%,
19.25%, and 21.99% respectively. All were accounted less than 50% of the total amount in the Sumatera
grid. According to the data, the simple OM method is selected for calculating the emission factor. For
the simple OM, the emission factor can be calculated using either of the two following data vintages:
Ex ante option: this option does not require monitoring and recalculation of the emission factor
during the crediting period because the emission factor is determined once at the validation stage. A
3-year generation-weighted average, based on the most recent data available at the time of the
submission of the CDM-PDD to the DOE for validation.
Ex post option: the emission factor is determined for the year in which the project activity displaces
grid electricity, requiring the emission factor to be updated annually during monitoring. If the data
required calculating the emission factor for year y is usually only available later than six months after
the end of the year y, alternatively the emission factor of the previous year y-1 may be used. If the
data is usually only available 18 months after the end of year y, the emission factor of the year
preceding the previous y-2 may be used. The same data vintage (y, y-1 or y-2) should be used
throughout all crediting periods.
Ex ante option: A 3-year generation-weighted average has been selected for the calculation of emission
factor for the project activity.
Step 4. Calculate the operating margin emission factor according to the selected method.

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The simple OM emission factor is calculated as the generation-weighted average CO2 emissions per unit
net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including
low-cost/ must-run power plants/units. The simple OM may be calculated by choosing one of these below
two options:
Option A: Based on the net electricity generation and a CO2 emission factor of each power unit; or
Option B: Based on the total net electricity generation of all power plants serving the system and the fuel
types and total fuel consumption of the project electricity system.
Option B can only be used if:
(a) The necessary data for option A is not available; and
(b) Only nuclear and renewable power generation are considered as low-cost/ must-run power sources
and the quantity of electricity supplied to the grid by these sources is known; and
(c) Off-grid power plants are not included in the calculation (i.e., if Option I has been chosen in Step 2).
The calculation of the simple OM emission factor uses option B, based on the total net electricity
generation of all power plants serving the system and the fuel types and total fuel consumption of the
project electricity system. The reason of choosing option B is because the necessary data needed in
Option A is not available for all power plants in the Sumatera grid. Data on fuel consumption of each
power plant owned by Independent Power Producer (IPP) is not publicly available. Thus, option B is
selected.
The simple OM emission factor is calculated based on the net electricity supplied to the grid by all power
plants serving the system, not including low-cost/ must-run power plants/units, and based on the fuel
type(s) and total fuel consumption of the project electricity system, as follows :
Where:
EFgrid, OM simple, y
FCi,y
NCVi,y
EFCO2,i,y
EGy
I
y
Simple operating margin CO2 emission factor in year y (tCO2/MWh)

Amounts of fossil fuel type i consumed in the project electricity system in year y
(Mass or volume unit)
Net calorific value (energy content) of fossil fuel type i in year y (GJ/ mass or
volume unit)
CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)
Net electricity generated and delivered to the grid by all power sources serving
the system, not including low-cost/ must-run power plants/ units, in year y
(MWh)
All fossil fuel types combusted in power sources in the project electricity system
in year y
The relevant year as per the data vintage chosen in step 3
Operating Margin
Total GHG emissions in 2005, 2006, 2007 (tCO2)
Total net electricity produced in 2005, 2006, 2007 (MWh)
Weighted average for the most recent 3 years (tCO2/MWh)
32,757,065
36,177,853
0.905

CDM Executive Board
page 51
Source: Spreadsheet-Updating Baseline EF Sumatera provided by BPPT.

In terms of vintage of data, project participants can choose between one of the following options:
Option 1: For the first crediting period, calculate the build margin emission factor ex ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation. For the second crediting period, the build margin emission factor
should be updated based on the most recent information available on units already built at the time of
submission of the request for renewal of the crediting period to the DOE. For the third crediting period,
the build margin emission factor calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting period.
Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex ante, as described in Option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
Option 1 is chosen by the project participant in terms of vintage of data.
Step 5. Calculate the build margin (BM) emission factor;
In terms of vintage of data, project participants can choose between one of the following two options:
Option 1: For the first crediting period, calculate the build margin emission factor ex ante based on the
most recent information available on units already built for sample group m at the time of CDM-PDD
submission to the DOE for validation. For the second crediting period, the build margin emission factor
should be updated based on the most recent information available on units already built at the time of
submission of the request for renewal of the crediting period to the DOE. For the third crediting period,
the build margin emission factor calculated for the second crediting period should be used. This option
does not require monitoring the emission factor during the crediting period.
Option 2: For the first crediting period, the build margin emission factor shall be updated annually, ex
post, including those units built up to the year of registration of the project activity or, if information up to
the year of registration is not yet available, including those units built up to the latest year for which
information is available. For the second crediting period, the build margin emissions factor shall be
calculated ex ante, as described in Option 1 above. For the third crediting period, the build margin
emission factor calculated for the second crediting period should be used.
Option 1 is chosen by the project participant in terms of vintage of data.
Capacity additions from retrofits of power plants should not be included in the calculation of the build
margin emission factor.
The sample group of power units m used to calculate the build margin should be determined as per the
following procedure, consistent with the data vintage selected above:

CDM Executive Board
page 52
(a) Identify the set of five power units, excluding power units registered as CDM project activities, that
started to supply electricity to the grid most recently (SET5-units) and determine their annual electricity
generation (AEGSET-5-units, in MWh);
(b) Determine the annual electricity generation of the project electricity system, excluding power units
registered as CDM project activities (AEGtotal, in MWh). Identify the set of power units, excluding
power units registered as CDM project activities, that started to supply electricity to the grid most recently
and that comprise 20% of AEGtotal (if 20% falls on part of the generation of a unit, the generation of that
unit is fully included in the calculation) (SET20%) and determine their annual electricity generation
(AEGSET-20%, in MWh);
(c) From SET5-units and SET20% select the set of power units that comprises the larger annual
electricity generation (SETsample); Identify the date when the power units in SETsample started to
supply electricity to the grid. If none of the power units in SETsample started to supply electricity to the
grid more than 10 years ago, then use SETsample to calculate the build margin. Ignore steps (d), (e) and
(f).
Otherwise:
(d) Exclude from SETsample the power units which started to supply electricity to the grid more than 10
years ago. Include in that set the power units registered as CDM project activity, starting with power units
that started to supply electricity to the grid most recently, until the electricity generation of the new set
comprises 20% of the annual electricity generation of the project electricity system (if 20% falls on part
of the generation of a unit, the generation of that unit is fully included in the calculation) to the extent is
possible. Determine for the resulting set (SETsample-CDM) the annual electricity generation (AEGSETsample-CDM, in MWh);
If the annual electricity generation of that set is comprises at least 20% of the annual electricity generation
of the project electricity system (i.e. AEGSET-sample-CDM 0.2 AEGtotal), then use the sample
group SETsample-CDM to calculate the build margin. Ignore steps (e) and (f).
Otherwise:
(e) Include in the sample group SETsample-CDM the power units that started to supply electricity to the
grid more than 10 years ago until the electricity generation of the new set comprises 20% of the annual
electricity generation of the project electricity system (if 20% falls on part of the generation of a unit, the
generation of that unit is fully included in the calculation);
(f) The sample group of power units m used to calculate the build margin is the resulting set
(SETsample-CDM->10yrs).
The Group of Power Units to be included in the Build Margin (BM)

CDM Executive Board
page 53
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Station
PLTU Tarahan 1
PLTU Tarahan 2
PLTG Riau Power (rental)
PLTD Sewa Arti Duta AU (rental)
PLTG Meppo Gen (IPP)
PLTG Apung
PLTA 1 Renun
PLTA Musi 1
PLTA Musi 2
PLTA Musi 3
PLTD-12 Gunung Sitoli
PLTD-13 Gunung Sitoli
PLTD-1 Teluk Dalam
PLTA-2 Renun
PLTG Inderalaya II
PLTG Truck Mounted 1
PLTG Truck Mounted 2
PLTG Rental Tl. Duku #1
PLTD 12 LUENG BATA
PLTD 13 LUENG BATA
PLTD 14 LUENG BATA
PLTGU Borang (IPP)
Installed
capacity (kW)
100.000
100.000
20.000
15.000
80.000
30.000
41.000
71.825
71.825
71.825
1.010
1.010
1.010
41.000
40.000
20.000
20.000
20.000
3.450
3.450
3.450
150.000
Year of
Commission
2007
2007
2007
2007
2007
2007
2006
2006
2006
2006
2005
2005
2005
2005
2004
2004
2004
2004
2004
2004
2004
2004
Fuel Type
coal & HSD
coal & HSD
Gas
HSD
Gas
HSD
Hydro
Hydro
Hydro
Hydro
HSD
HSD
HSD
Hydro
Gas & HSD
Gas
Gas
Gas
HSD
HSD
HSD
Gas
Source: Spreadsheet-Updating Baseline EF Sumatera provided by BPPT

The build margin emission factor is the generation-weighted average emission factor (tCO2/MWh) of all
power units m during the most recent year y for which power generation data is available, calculated as
follows:
EG EF
=
EG
m, y
EFgrid , BM , y
EL ,m , y
m, y
Where:
EFgrid,BM,y
EGm,y
=
=
EFEL,m,y
m
y
=
=
=
Build margin CO2 emission factor in year y (tCO2/MWh)

Net quantity of electricity generated and delivered to the grid by power unit m
In year y (MWh)
Power units included in the build margin
Power units included in the build margin
Most recent historical year for which power generation data is available
Build Margin
Total GHG emission in 2007 (tCO2)
Total net electricity produced in 2007 (MWh)
Build margin (tCO2/MWh)
1,885,681
3,248,295
0.581

CDM Executive Board
page 54
Step 6. Calculate the combined margin (CM) emissions factor.

The calculation of the combined margin (CM) emission factor (EFgrid,CM,y) is based on one of the
following methods:
(a) Weighted average CM; or
(b) Simplified CM.
The weighted average CM method (option A) should be used as the preferred option.
The simplified CM method (option b) can only be used if:
The project activity is located in a Least Developed Country (LDC) or in a country with less than
10 registered projects at the starting date of validation; and
The data requirements for the application of step 5 above cannot be met.
The weighted average CM method is used and the combined margin emissions factor is calculated as
follows:
EFgrid ,CM , y = EFgrid ,OM , y WOM EFgrid ,BM , y WBM

Where:
EFgrid,BM,y
EFgrid,OM,y
WOM
WBM
=
=
=
=
Build margin CO2 emission factor in year y (tCO2/MWh)

Operating margin CO2 emission factor in year y (tCO2/MWh)
Weighting of operating margin emissions factor (%)
Weighting of build margin emissions factor (%)
Combined Margin
Build Margin (tCO2/MWh) (50%)
Operating Margin (tCO2/MWh) (50%)
Combined Margin (tCO2/MWh)
0.581
0.905
0.743

CDM Executive Board
page 55
Annex 4
MONITORING INFORMATION
Please refer to section B.7.1 and B.7.2.
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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM

General description of project activity

Application of a baseline and monitoring methodology

Duration of the project activity / crediting period

Annex 1: Contact information on participants in the project activity

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

SECTION A. General description of project activity

Description of the project activity:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Private and/or public entity(ies)

Private Entity: PT Supreme Energy

Contact details as listed in Annex I.

Technical description of the project activity:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

A.4.2. Category(ies) of project activity:

Condensing steam turbine

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Cooling water systems (CW)

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Process Diagram of Power Plant is shown below:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Estimated amount of emission reductions over the chosen crediting period:

Annual estimation of emission reductions in

A.4.5. Public funding of the project activity:

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

SECTION B. Application of a baseline and monitoring methodology

The project activity is the installation of a new

The project activity is the installation of a new

This criterion is not applicable as the project

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

commercial operation prior to the start of a

This criterion is not applicable as the project

This criterion is not applicable to the proposed

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

reservoirs with power density lower than 4

Biomass fired power plants;

Hydro power plants that result in new

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Under this tool, the emission factor for the

The emission factor the project electricity

The project electricity system (Sumatera Grid)

In the case of the project activity, the CO2

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

Emergency diesel generator

Emissions sources included in or excluded from the project boundary

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

For geothermal power CO2

Main emission source

Main emission source

CO2 emissions from

The methodology considers this as a minor

Recently changed into Directorate General of Electricity

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

The parameter values are summarized below:

The detailed calculations are presented in Annex 3.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03.1.