Country paper: Indonesia

Biomass for Electricity Generation

Dadan Kusdiana Directorate General of Electricity and Energy Utilization Republic of Indonesia

Introduction
Biomass available in all part of the country; Varied in different geographical location; Generally, the use of biomass is still in traditional activities; Biomass in the form of residue and waste is not utilized yet.

Biomass energy
Resource: Forestry Agro-industrial waste Crop residues Municipal city waste Energy form: Solid
Direct combustion, gasification, pellet

Liquid
Biodiesel Bioethanol, biomethanol Biofuel

Gas
Biogas

Biomass energy technologies currently being developed

Cooking stove Gasification and CHP generation Biodiesel Biogas

Policy developments for biomass

Promoting Green Energy Policy Priority in utilizing local energy resources

Biomass programmes

Short term (5 years)

Investment
Promoting renewable energy programmes to financial institutions Simplifies credit procedures Microfinance Developing public-private partnership Fiscal incentives (energy royalty, interest free loan) Tax incentives (VAT, luxury tax, etc)

Fiscal and tax incentives Energy pricing

Information Research and development

Continue to remove energy subsidies Premium pricing for renewable energies

Biomass programes

Long term (up to 20 year)

Non-fossil fuel obligation Mandatory in utilizing environmentallyfriendly technologies Financial institution for renewable energy projects

National technical know-how on biomass

Ministry of Energy and Mineral Resources

Directorate of New Renewable Energy and Energy Conservation Research and Development Center for Energy Technologies and Electricity

Agency for Assessment and Application of Technology

Energy Technology Laboratory Engineering Center

Level of national awareness and acceptance

Government has decided to put at least 5% of national electricity demand produced from renewable energy including biomass Kyoto Protocol has been ratified; CDM project as well as developers begin to growth ISO14002 in relation with renewable energy utilization; the use of biodiesel

Renewable energy status

Sources
Hydro Geothermal Mini/Micro Hydro Biomass

Potential
75,000 MW 27,000 MW 459 MW 49,810 MW

Installed Capacity
4,200 MW (6 %) 802 MW (4 %) 64 MW (14 %) 302 MW (6 %)

Solar Energy
Wind Energy Total

4.8 kWh/m2/day
3-6 m/sec

5 MW
0.5 MW 5375 MW

Note: 1. Operating time is 24 h/d for biomass, biogas, geothermal and micro hydro, 8 h/d for solar PV and wind 2. Total land area for wind power generation per unit is 250 x 250 m2 3. Total potential area for solar generation is equivalent to total area of Indonesia 4. Total geothermal potential was based on the sum of proven reserves, expected and speculative possible and hypothetical reserves 5. Wind energy potential as well as installed capacity was based on generating capacity of 20 kVA (15 kW)

Potential for biomass technologies in selected industries

Type of industry Mill size
Capacity of CHP technology 40-100 kWe

Biomass potential for power generation

0.6 m3 wood waste/m3 sawn timber ~ 130 kWh/m3 sawn timber 0.8 m3 wood waste/m3 plywood ~ 200kWh/m3 plywood

1. Saw mills

1000-3000 m3/y

2. Ply wood mills

40 000-120 000 m3/y

1.5 3 MWe

3. Sugar mills
4. Rice mills

1000- 4000 TCD

< 0.7 t/h >0.7 t/h 20- 60 t FFB/h

3-10 MWe
30-70 kWe 100-300 kWe

0.3 t bagasse/t sugarcane ~ 100 kWh/t sugar cane

280 kg husk/t paddy ~ 120 kWh/t paddy 0.2 t EFB/t FFB 0.2 t fibre/t FFB 70 kg shells/t FFB ~160 kWh/t FFB

5. Palm oil mills

Note: TCD= tones of Cane per day; FFB= Full Fruit Bunches; EFB= Empty Fruit Bunches. Source: ZREU (2000)

Level of potentially available biomass residues for power generation

Biomass Rubber wood Main region Sumatera, Kalimantan, Java Sumatera, Kalimantan Sumater, Kalimantan Kalimantan, Sumatera, Java, Papua, Maluku Java, Sumatera, South Kalimantan Java, Sumatera, Sulawesi, Kalimantan, Bali, Nusa Tenggara Sumatera, Java, Sulawesi Sumatera, new areas: Kalimantan, Sulawesi, Maluku, Nusa Tenggara, Papua Production (million ton/year) 41 (replanting) 4.5 1.3 1.5 Bagasse: 10 Cane tops: 4 Cane tissues: 9.6 Husk: 12 Bran: 2.5 Stalk: 2 Straw: 49 Shell: 0.4 Husk: 0.7 Empty fruit bunches: 3.4 Fibers: 3.6 Palm shells: 1.2 Technical energy potential (million GJ/year) 120 Remarks
Small logs d <10 cm Big and medium logs are used as fire wood in brick and roof tile industries: price 20,00030,000 IDR/m3

Logging residues Sawn timber residues Plywood and veneer production residues Sugar residues

19 13 16 78
Bagasse is generally used in sugar factories (90%) The use of cane tops and tissues needs to be investigated Stalk and straw are generated at the field and generally burnt, in some areas used for feeding or raw material for paper industries Husks often burnt uncontrolled Residues are generated decentralized and usually left on the plantation field. Largely used as fire wood and for the production of charcoal Palm shells and fibers are common fuel sources, EFB are generally incinerated Residues of factories are often used as fire wood by local communities, residues available for free

Rice residues

150

Coconut residues

Palm oil residues

67

Estimated power capacity generated from biomass waste*

Industries Palm oil mills Sugar mills

Estimated power capacity, MW 90 250

510 1,030

Rubberwood industries
Logging industries Plywood waste Forest clearing residues Total

680 1,600
390 113 666 9,330 2,349-12,713

* ESMAP, 1994

Estimated surplus power capacity in palm oil industries

Province Total capacity (t FFB/h) 230 2070 300 10 30 Power capacity based on CPO residues (MW) Lower estimate 7.0 63.0 9.1 0.3 0.9 Higher estimate 19 168 24

Aceh North Sumatera Riau Jambi Bengkulu

South Sumatera
Lampung West Java West Kalimantan East Kalimantan South East Sulawesi

120
70 30 90 30 30

3.6
2.1 0.9 2.7 0.9 0.9

10

Irian Jaya
Total

30
3,040

0.9
92 247

Note: Calculated on the basis of 7884 operating hours per year. The lower estimate takes account of an efficiency of 15% while the higher estimates 35%. Source: from ESMAP, 1994.

Prospective options for generation capacity in palm oil industries

Large centralized systems (30 MW and up) utilizing EFB as residues and a central collection system; Medium size regional systems (3 5 MW) utilizing EFB from a number of mills in a designated radius; Decentralized systems (500 3 MW) for individual palm oil mills.

Daily garbage production in some main cities

No. City Population Total waste (ton/day)

1.
2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Jakarta
Surabaya Bandung Bekasi Tangerang Semarang Malang Surakarta Denpasar Yogyakarta Bogor

9,784,308
2,913,973 2,603,855 1,577,958 1,466,596 1,454,932 828,710 534,079 485,538 442,824 306,246

4,892
1,457 1,301 789 733 727 414 267 243 221 154

Source: R. Sudrajat, 2004

Composition of garbage in Metropolitan cities (in percentage)

Composition
Papers Wood/bamboo Kitchen wastes textile Rubber/leather Plastics Metal Sand, ceramic, dusts Glass Others

Medan
17.5 0 48.2 0 2.3 13.5 3.5 2.3 12.7

Palembang
18.8 75.2 0.3 0.5 3.3 0.8 0.4 0.6

Bandung
10.4 0 63.6 1.8 4.1 5.6 0.9 1.5 12.1

Semarang
12.28 25.74 34.12 1.56 1.08 13.5 1.82 0.49 1.74 7.64

Surabaya
12.45 71.85 1.94 0.54 7.6 0.9 0.9 3.82

Jakarta
10.11 3.12 65.05 2.45 0.55 11.08 1.9 1.63 4.11

U.Pandang
14.15 1.15 65.84 1.22 0.36 6.19 1.89 1.28 2.33 5.6

Source: Ministry of Public Works of Indonesia, 1999

Cost-effectiveness of biomass vs commercial applications

Case of Rice husk gasification

Diesel genset and gasifier (Rp/kWh) 234.0 324.0 1.8 559.8 Diesel generator set (Rp/kWh) 194.0 495.0 1.8 640.8

Component cost
Investment Fuel Variable OM Total

Gas Power Electricity Generation (Rp/kWh) 227.0 231.0 1.2 459.2

Simple economic analysis

Rice husk-diesel generator Diesel fuel consumption Diesel fuel price, Rp/L Diesel fuel cost, Rp/year Rice husk, Rp.
(1.5 kg/kWh, 439,920 kg, Rp. 50/kg)

Conventional diesel generator 0.30 L/kWh 87,984 L 1,650 145,173,600

0.06 L/kWh 17,597 L 1,650 29,034,720 21,996,000 43,992,000 95,022,720 324 50,150,880

Gasification cost, Rp.

(Rp. 150/kWh)

Total production cost, Rp. Specific fuel cost, Rp/kWh Total saving, Rp.

145,173,600 495

Rice husk gasification project facility Haurgeulis, West Java

10.3 MW Palm Oil Residue Plant, Pangkalanbrandan, Sumatra.

Project Description

Project Description

Conventional steam cycle system The plant will utilize:

Empty Fruit Bunches: Shell: Fibre: 57% 31% 12%

Fuel sourced from 6 mills. 100% of the required fuel can be supplied within 80km. Reduce dumping of 110,000 tonnes of EFBs annually. Net electrical output 10.3 MWe sold to PLN, Area II under 20 year PPA.

Financial Model Results

Total Project Cost Debt/Equity Ratio Debt Interest Rate
(during operations)

US$ 18 million 60 : 40 8.5 %

Terms of Debt
20 years IRR
(after local tax)

2 + 10 years
17.36%
(without sale of CERs)

Characteristic renewable energy for electricity generation

No. 1. 2. Type of energy Microhydro Solar -Photovoltaic -Solar thermal Investment cost (US$/kW) 700 2,500 5,000 6,000 300 Electricity generating cost (Cent/kWh) 3-5 -

3.
4. 5. 6.

Geothermal
Biomass Wind Diesel fuel -With subsidy -Without subsidy

1,150 3,000
500 - 700 3,500 4,000 550 550

2.5 - 7
3-4 12 - 21 3.4 6

Source: MEMR, 2001

Market for biomass

Government energy policy to support utilization of renewable energy including biomass PSK Tersebar Electricity crisis Recovery of economic activities

Road map biomass development for electricity generation

Year Capacity (MW) Share (%) Growth (%/a) 2003 2004 2008 2012 2016 2020

445.0 466.6 563.9 654.0 727.9 810.9 1.79 1.76 4.9 1.62 1.49 1.27 2.7 1.04