PLAN & READINESS OF PLN

TO EXPLOIT OR TO PURCHASE
BIOMASS BASED ELECTRICITY

Mochamad Sofyan
Head of New & Renewable Energy Division
INDONESIA GERMAN WORKSHOP
Institut Teknologi Bandung
Bandung , 26th of September 2011

AGENDA

AGENDA
AGENDA
A.

GENERAL POLICY

B.

THE UTILISATION OF BIOMASS TO GENERATE ELECTRICITY

C.

CONCLUSION

Policy on Energy Development

General Policy:
Conservation and Diversification of primary Energy by utilization of renewable energy
President Decree no 5/2006, contribution of renewable energy by 2025 : 17%.
PERMEN ESDM (Regulation of Ministry of Energy and Mineral Resources) LNG
no 31/2009
concerning energy price and obligation of PLN to purchase an electricity generated
from
Gas
small scale renewable energy ( under 10 MW ).

PLN Plan and Policy ( RUPTL 2010 -2019 ) :

The growth of electricity demand by 9,2 % annually which supplied by various energy
Coal
resources
Electrification ratio grows from 68 % in 2010 to be 91 % by 2019.
HSD
MFO oil consumption from 19 % to 3 % by 2015.
The
program to reduce
With the dominant of coal power plant development (58 %), the contribution of renewable
energy will increase from 12 % ( 2010 ) to be 19 % ( 2019 ).
Geothermal
The utillisation of biomass energy has been planned in the RUPTL ( general
plan for
Hydro
electricity supply).
PLN considered not to have biomass power plant, but treated as an Excess Power or IPP
power plant , due to feedstock supply issues.
3

Indonesia Energy Policies to Reduce GHG emission

Presidential Decree No 5/2006 regarding National Energy Policy

Presidential Decree No. 4/2010 that assigns PLN to accelerate development of power
generation plants using renewable energy, coal and gas. The renewable energy portion is
40% of the total capacity listed in this program

Target of National Energy Mix 2025

(Based on Presidential Regulation No. 5/2006)

Bio-fuel 5 %

Coal 33 %
Geothermal 5 %

N&RE
17 %

Gas 30 %
Oil
20 %

Biomass, Nuclear,
Hydro, Solar Power,
Wind Power 5 %
Coal Liquefaction 2 %

Planning Policy
Policy for Generation Expansion Planning
Reserve margin for power systems outside Java-Bali is allowed to be higher
than 40% to accommodate uncertainties in the completion of power plant
projects.
Site location for new power plant is determined by taking into account the
availability of local primary energy sources and considering the regional
balance principle to minimise investment of transmissions.
Development of renewable energy, especially geothermal, is not decided by
least-cost principle, but by considering its expected development period.
Fuel-oil power plants are only planned to meet peak demand, and other type
of peaking plants such as pumped storage hydro plants, reservoir hydro plants
and gas-fired turbine power plants are also planned.
The development of electricity supply in remote areas, the borders islands
and other outer islands, especially in the eastern part of Indonesian
archipelago, would be prioritized to utilize locally available renewable energy
5

Realisation and Projection of Electricity Demand 2010-2019 (GWh)

400,000

Realization

350,000

Projection
327
TWh

300,000

252
TWh

250,000
200,000
150,000
100,000
50,000
-

133
TWh
104
TWh
20 TWh
10 TWh

54 TWh
28 TWh

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Indonesia electricity demand is predicted to grow at average of 9.2% annually (Java-Bali 8.97%,
West Indonesia 10.2% dan East Indonesia 10.6%)

Renewable Energy ( RE ) Development Target

( RUPTL PLN 2010-2019)
Development Program
( up to 2019 ):
0%

100%

7%

13%

90%

3%

Hydro :
Additional Cap: 5.990 MW
Geothermal :
Addtional Cap: 5.550 MW
Others Small scale RE:
Additional Cap: 1.700 MW
( Including Biomass : 374 MW )
PLN will focus mainly on mini
hydro , solar and biomass
development.

80%
70%

0%

3%

0%
4.8%
2.0%
3%

0%
3%
1%
2%

0%
3%
0%
2%

0%
2%
0%
2%

0%
2%
0%
2%

0%
2%
0%
3%

0%
2%
0%
4%

0%
2%
0%
4%

24%

22%

19%

20%

18%

54%

56%

57%

56%

58%

0%

25%

28%

26%

29%

25%

60%
50%
51%

40%

51%

54%

52%

6%

6%

9%

12%

13%

13%

6%

13%

13%

13%

6%

6%

5%

5%

5%

4%

4%

4%

4%

4%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Nuklir

Batubara

MFO

HSD

46%

30%
20%
10%
0%

Hydro

Geothermal

Gas

LNG

Pumped Storage

RE contribution on National Energy Fuel Mixedi will increased from 12 % (2010) to 19 %, Coal
Thermal still dominant by 58 % ( 2019 )

AGENDA

AGENDA
AGENDA
A.

GENERAL POLICY AND POTENTIAL RESOURCES

B.

RE DEVELOPMENT PLAN AND THE UTILISATION OF BIOMASS

C.

PENUTUP

ADDITIONAL PLANT CAPACITY

Tahun

2010

2011

2012

2013

PLN
Coal STPP

3,291

Comb. Cy. PP

194

Gas TPP

105

Diesel PP

11

Geo. PP

10

Mini HEPP
HEPP

Total PLN

Comb. Cy. PP
Gas TPP
Diesel PP
Geo. PP
Mini HEPP
HEPP

Total IPP

2015

834

1,479

2,203

820

393

350

240

225

50

2016

110

2017

2018

2019

65

3,007

Tota l

1,200

200

700

1,500

2,250

6,447

235

800

1,065

1,280

3,825

(INCL. GREEN & NEW ENERGY

-

16,421

14

12

48

44

42

34

16

33

50

303

55

78

143

203

20

23

20

20

575

6
-

DEVELOPMENT)
6

14

10

300

1,000

65

103

715

1,311

818

4,321

66

3,625

4,985

1,558

2,384

3,698

306

2,299

3,242

4,686

5,175

31,958

26

891

2,649

1,703

2,212

2,160

2,550

1,930

1,410

745

16,276

290

110

30

10

10

80

IPP
Coal STPP

2014

4,090

14
-

CAPACITY

22
-

178

25

31

180

195

91

531

1,262

3,028

857

120

550

100

2,450

42

50

330

392

510

22
5,415

157

90

310

30

2,601

4,945

2,302

3,191

2,353

1,921

1,390

23,525

2,270

3,750

2,130

1,417

3,752

32,697

700

1,500

2,250

6,997

235

800

1,065

1,280

3,925

645

201

962

PLN+IPP
Coal STPP

3,317

4,981

3,483

3,182

4,415

Comb. Cy. PP

484

930

423

350

360

Gas TPP

115

10

305

50

65

Diesel PP

11

36

12

48

44

42

34

16

33

50

325

Geo. PP

10

58

256

1,000

2,653

70

353

395

530

665

5,990

Mini-Hydro PP

39

38

98

56

13

Hydro Electric PP

180

195

10

300

1,157

155

413

745

1,311

818

5,283

Total PLN+IPP

4,156

6,248

4,586

4,985

8,643

2,608

5,490

5,596

6,607

6,565

55,484

58

57

90

155

191

208

217

222

242

263

1,703

SMALL SCALE
GREEN & NEW
ENERGY PP

Total Capacity of Green & New Energy PP to be built in the period is 11,540 MW
(total capacity of Geothermal PPs, Hydro Electric PPs-HEPP, Mini HEPPs, and Small
Scale Green & New Energy PP)
57% of the total capacity of Green Energy PP will be expected from IPPs

267

SMALL SCALE RE DEVELOPMENT PLAN

PENGEMBANGAN PEMBANGKIT LISTRIK EBT - ENERGI ALTERNATIF
( RUPTL TAHUN 2010 - 2019 )
No
1
2
3
4
5
6
7

Pembangkit - EBT
PLTMH
PLT Surya
PLT Bayu
PLT Biomass
PLT Kelautan
PLT Bio-Fuel
PLT Gas-Batubara
TOTAL

Stn

2010 2011

MW
MWp
MW
MW
MW
MW
MW

2
0
4
0.0
0.0
12

5
5
10
0.0
0.5
15

MW

18

36

TAHUN
2012 2013 2014 2015 2016 2017 2018 2019 TOTAL
0
5
10
15
30
30
30
30
30
187
5
8
8
8
10
10
10
10
74
10
10
10
25
25
25
25
40
184
0.2
0.3
0.5
1.0
1.5
2.0
2.0
2.5
10
2
2
2
3
5
5
10
10
40
15
15
15
25
25
25
30
30
207
37

45

51

92

97

97

107

123

702

PENGEMBANGAN PEMBANGKIT LISTRIK EBT - ENERGI ALTERNATIF

( USULAN REVISI RUPTL TAHUN 2011 - 2020 )
No
1
2
3
4
5
6
7

Pembangkit - EBT
PLTMH
PLT Surya
PLT Angin
PLT Biomass
PLT Kelautan
PLT Bio-Fuel
PLT Gas-Batubara
TOTAL

Stn

TAHUN
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL

MW
MWp
MW
MW
MW
MW
MW

20
5
16
12

40
15
33
1
56

50
15
35
0
2
60

60
15
35
0
2
80

70
15
35
1
2
80

70
15
40
1
3
90

75
20
40
2
5
90

75
20
45
2
5
95

80
25
45
2
10
95

80
25
50
3
10
100

620
170
374
10
40
758

MW

53

145

162

192

203

219

232

242

257

268

1,972

PALM WASTE BIOMASS POTENTIAL ( MW )

( State Own Plantation Company)
Proyeksi Besarnya Daya (MW) BUMN Perkebunan 2009-2014
No

Uraian

Asumsi (MW) - Rata rata

2011
2012
2013

2010

2014

PTPN I

0.59

0.16

0.16

0.05

0.13

PTPN II

9.49

8.37

5.64

4.45

3.51

PTPN III

13.26

13.65

14.06

14.48

14.92

PTPN IV

11.54

14.98

12.84

16.05

16.05

PTPN V

21.86

18.59

17.11

14.49

13.29

PTPN VI

14.33

16.49

16.41

16.24

15.85

PTPN VII

3.91

3.56

2.71

2.24

2.24

PTPN VIII

0.62

0.75

0.75

0.75

0.75

PTPN XIII

3.09

3.34

3.66

3.92

4.32

10

PTPN XIV

1.82

2.24

2.65

2.90

2.90

11

RNI

4.83

5.24

5.37

5.74

6.58

85.34

87.38

81.38

81.32

80.55

249.10

265.23

268.25

285.24

287.19

12 Jumlah
13 Tot.Inti+Plasma+Phk III

Sahabat Setia untuk Kemajuan

11

MSW (PLTSampah) Potential (Proposed by Developers)

No

Lokasi

MW

Bekasi, Bantargebang

26

Bandung

10

Surabaya, Benowo

10

Bali, Suwung

Total

55

12

The Current Biomass Power Plant Contracted with PLN ( 38 MW )

Data Perusahaan Penjual Tenaga Listrik dari Biomassa
kepada PT.PLN (Persero)
No

Nama Perusahaan

Nama Pembangkit

COD

Jenis kontrak

Lokasi

Biomass
Type

PT Listrindo Kencana

PT Growth Sumatra

PT Navigat Organic

4
5

PT Navigat Organic
PT Belitung Energy

PT Growth Sumatra

PT Pelita Agung

PLTBiomassa
Listrindo Kencana
PLTBiomassa
Growth Sumatra 1
PLTSampah
Suwung
PLTSampah Bantar
Gebang
PLTBiomassa
Belitung Energy
PLTBiomassa
Growth Sumatra 2
PLTBiomassa
Dumai

2006

IPP

2006

Excess power

2008

Excess power

Bangka
Sumatera
Utara
Bali

Palm waste

Kapasitas
Kontrak
(MW)
5

Palm waste

MSW

Harga
Rp/KWh

766
785.4

800
2009

Excess power

Bekasi

MSW

4
800

2010

IPP

2010

Excess power

2010

Excess power

Belitung
Sumatera
Utara
Riau

Palm waste

Palm waste

787
785.4

Palm waste

787

13

Biomass Power Plant in Progress of Contract with PLN

( 21 MW )
No

Nama Perusahaan

Nama Pembangkit

COD

Jenis kontrak

Lokasi

Biomass
Type

Kapasitas
Kontrak
(MW)

Harga Rp/KWh

PT Victorindo

PLTBiomassa
Padang Lawas

2011
progress

Excess
power

Sumatera
Utara

Palm
waste

787

PT Nubika Jaya

PLTBiomassa
Pinang

2011
progress

Excess
power

Sumatera
Utara

Palm
waste

787.2

PT Growth Asia

PLTBiomassa
Growth
Sumatra 3

2011
progress

Excess
power

Sumatera
Utara

Palm
waste

10

787.2

14

Key Challenges / Constraints

1.

Legal aspect / regulation :

Permits
Pricing
Contract

2.

Uncertainty on long term fuel supply of biomass feed stock

Continuity of long term supply

3.

Lending Aspect
Contract for Excess Power limited to 3 year
Uncertainties on long term fuel / feed price

4.

Environmental and Social Aspect

15

Regulation for Feed-in Tariffs ( FIT )

MoEMR Decree 31/2009:
For RE with 10 MW Maximum installed capacity
Tariff is set as: - 7 c USD /kWh (connected to medium voltage line)
- 10.8 c USD /kwh (connected to low voltage line)
- Incentive factor of 1.1 1.5 for outside Java-Bali
Tariff higher than setting tariff : B to B mechanism and subject to GOI
approval
MoEMR Decree 32/2009 :
Ceiling tariff set as 9.7 c USD/kWh for Geothermal
Propossed FIT for Biomass :
Estimated Tariff propossed: 10 11 cent USD/kwh
Incentive factor based on region

16

The Barriers of Biomass Energy Development

There is no standard price of biomass fuel. The price tends to
follows oil price issue.
The continuity of supply is questionable as the feedstock producer
tend to export their product ( esp. Palm waste) for higher offer.
Feedstock producer do not want to be tightened with long term
contract .
The lack of interest of farmers to plant energy crops due to Income
from growing energy crops may not be competitive than growing
other crops.
Unpredictable crops failure that lead to uncertain financial return
for farmers.
High capital cost of advanced biomass technology
Social objection for MSW power plant
17

Opportunities of Biomass Energy Developers

Unlike in Sumatra and Kalimantan, there are only a few biomass
plant developers in Eastern Indonesia. These provide opportunities
for new players to invest.
Low electrification ratio by less than 60% in Eastern Indonesia
presents interesting chance for developers.
There will be new Feed in Tarif for electricity generated from
biomass, which is around 10 11 cent USD/ kWh.
The risk of sustainability of feedstock supply can be minimized
with the availability of various type of biomass
Availability of unproductive land that can be utilize as a cultivated
wood for wood pellets.
18

AGENDA

AGENDA
AGENDA
A.

GENERAL POLICY AND POTENTIAL RESOURCES

B.

THE UTILISATION OF BIOMASS TO GENERATE ELECTRICITY

C.

CONCLUSION

19

CONCLUSION
As the electricity demand growing rapidly, PLN is ready to
purchase electricity generated from Biomass.
Considering that the average selling electricity price to
customers is Rp 700,00 per kWh, the new proposed base
Feed in Tariff for biomass energy by Rp 950,- is sufficient
to provide profit for energy developers as well as to avoid
subsidy burden for government.
The export of raw materials biomass should be limited by
introducing the fiscal policy to stabilize domestic price.
Financial incentive is required by all stake holders in order
to accelerate the biomass plant growth.
20

Terima Kasih

21