ANDRITZ HYDRO Adhi Satriya

32
www.andritz.com Challenges and Opportunities of Renewable Power Development for Indonesia Renewable Energy Sector meeting during the EU-Indonesia Business Dialogue (EIBD) By Ir. Adhi Satriya M.Sc.

Transcript of ANDRITZ HYDRO Adhi Satriya

Page 1: ANDRITZ HYDRO Adhi Satriya

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Challenges and Opportunities

of Renewable Power Development for Indonesia

Renewable Energy Sector meeting during the EU-Indonesia Business Dialogue (EIBD)

By Ir. Adhi Satriya M.Sc.

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ANDRITZ HYDRO

Adhi Satriya

2

Adhi is a Master in Electrical Engineering graduated from “10

November” Surabaya Institute of Technology (ITS) in 1974 and

successfully got his Master of Science in Power System

Engineering, Union College, Schenectady, New York, USA in

1983.

He started his career as a PLN’s planning engineer in 1975 and

worked with PLN for 25 years. Appointed in various PLN’s

strategic position from planning, operation, to top

management and became a President Director of PLN until

1999.

He started his professional experiences by became an

independent consultant from 2001 – 2007, then joined PT

Priamanaya Energi in 2008 until July 2014 as a Vice President

Director. During his employment at PT Priamanaya, he was

appointed as a Vice President Director from 2011 – 2012 in PT

Andritz Hydro, continue to became President Commissioner in

2012 – July 2014 and currently active as a Senior Advisor to

BOD in PT Andritz Hydro.

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ANDRITZ HYDRO More than 170 years of experience and knowledge

in the field of hydropower generation

KVAERNER

Boving

NOHAB

Tampella

Escher Wyss

Baldwin-Lima-Hamilton

GE HYDRO inepar

GE HYDRO Sulzer Hydro

Pelton Water Wheel

J.P. Morris Bouvier

Pichlerwerke

Hydro Vevey

VA TECH HYDRO

Andritz VA TECH HYDRO

VOEST

ELIN

Ateliers de Construction

Méchanique de Vevey (ACMV)

Charmilles

Andritz

Waplans

SAT

Finnshyttan

C.E.G.B.

English Electric

Bell

KMW

VOEST MCE

Møller

KAMEWA

Dominion

Engineering

Sorumsand

Veksted

3

More than 170 years of turbine experience

Over 30,000 turbines (more than 400,000 MW)

installed

Over 120 years of experience in electrical equipment

Complete range up to more than 800 MW

Leading in Service & Rehabilitation

World leader for Compact Hydro

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How will we satisfy the electricity Demand?

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Electricity Consumption per Capita (kWh/year)

13.647

6.287

3.3782.453 2.232

566

USA Europe /

Eurelectric

CEE China Brazil India

Cumulative investments in energy supply infrastructure

in the IEA reference scenario, 2007 - 2030

In 2009, 1.44 bn. people lacked access to electricity

(20% of global population) !!

In 2030, still 1.2 bn. people will be affected !

Indonesia with an electrification ratio of 70% wants

to reach 100% by 2025

Hence new ideas on how to secure implantations

will be required for the benefit of Indonesia

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The Market

Evolution of global energy demand

Source: IEA, World Energy Outlook 2010

Worldwide Electricity Consumption (TWh)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

1980 2001 2008 2020 2035

TW

h

Current Policy Scenario New Policies Scenario 450 Scenario

Electricity Consumption per Capita (kWh/year)

13.647

6.287

3.3782.453 2.232

566

USA Europe /

Eurelectric

CEE China Brazil India

Cumulative investments in energy supply infrastructure

in the IEA reference scenario, 2007 - 2030

Source: IEA, World Energy Outlook 2007

In 2009, 1.44 bn. people lacked access to electricity

(20% of global population) !!

In 2030, still 1.2 bn. people will be affected !

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Renewable Pros Renewable Cons

• Reliability and consistency is a significant drawback

with respect to renewable energy. Atmospheric

conditions and geographical locations make a huge

impact on the efficacy of these energy sources.

• The initial investment or setup cost is significantly high,

in case of renewable energy sources. This, often, acts as

a deterrent in people switching over to renewable energy

sources.

• Every form of renewable energy has its own set of

problems, drawbacks or limitations with respect to

environment and ecology.

• People are not yet fully convinced about the

sustainability and the value-for-money aspect of

renewable energy. Therefore, global acceptance of

renewable energy on a mass scale is something that is

yet to happen.

• The word 'renewable', says it all. Fossil fuels are

perishable sources of energy, whereas renewable

energy sources are non-perishable and can be easily

replenished.

• Most renewable energy sources do not involve the

combustion or burning of fossil fuels or other

substances, which otherwise result in the release of

toxic chemicals or other harmful atmospheric

byproducts. Therefore, renewable energy is a clean

source of energy and one that offers numerous

environmental benefits.

• Renewable energy sources are plentiful and are

available all over the world. Plus, being non-perishable

energy sources, one doesn't have to worry about these

energy reserves declining or getting exhausted in the

future.

• Most of these energy sources have low maintenance

costs associated with them. Also, renewable energy

sources such as solar energy, can be tapped very easily

and conveniently for domestic use by individual home

owners.

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Hydro Power

• Hydropower offsets the emissions of non-renewable energy sources (such as

coal and natural gas), thus reducing our contribution to global climate change.

• Hydropower is the most important source of renewable energy in the world.

• Hydropower is a consistent, reliable and renewable source of clean power.

• More than 150 countries around the world generate hydropower.

• Nearly 20% of the world’s electricity is produced by hydropower.

• Hydropower is one of the electricity sources that generate the fewest

greenhouse gases, i.e. 60 times less than coal-fired power plants and 18 times

less than natural gas power plants.

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Proportion of Hydropower Developed, by Region

Sources: EIA 2010 and IHA 2010, CHA, 2011

The fundamental difference between the emerging countries and the

developed countries is the effective use of their renewable energy

resources

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Electricity generating cost by technology

Hydro is the cheapest …..

• Eurelectric - Union of the Electricity Industry in Europe

• VGB PowerTech - European technical association for power and heat generation

Eurelectric/VGB levelised costs of electricity (at 5% discount rate)

0

50

100

150

200

250

Nuclear E

PR

Coal Bk

Coal Br

Coal Bk U

SC w/C

C(S)

Gas CCGT

Onshore w

ind

Offshore

win

d (Clo

se)

Offshore

win

d (Far)

Hydro la

rge (R

iver)

Hydro L

arge (P

ump)

Solar P

V

Solar t

hermal

US

D / M

Wh

Investment costs O&M Fuel costs Waste management Carbon costs

9

Source: IEA Projected Costs of Generating Electricity;

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HYDRO

The backbone of renewable energies

Large Hydro and Compact Hydro will remain the dominating

segment within the hydropower market in the future

New Technologies for Low Head Hydro’s and Ocean Kinetics will

be more globally accepted

Most of the increase of hydropower occurs in non-OECD

countries (China, India, ASEAN, South America)

Incremental renewables-based electricity generation by region in the new policies scenario,

2008-2035 Source: IEA, World Energy Outlook

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2010-2020 2021-2035

$2

00

9 b

illi

on

Investment in renewables-based electricity generation by technology in the New Policies Scenario

Concentrated Solar Power

Solar Photovoltaic - buildings

Solar Photovoltaic - large scale

Geothermal

Wind - offshore

Wind - onshore

Biomass

Ocean

Hydro - small

Hydro - large

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New Technologies

Tap the untapped resources

HYDROMATRIX®

Utilization of existing structures

No geological risk

No additional land usage

New dams with very low heads

Standardized modular concept

Compressed project schedule

HYDROMATRIX® modules removable at flood

conditions

Existing river flow pattern can be maintained

High availability

ECOBulb™

Axial unit with direct coupled generator

Synchr. generator with permanent magnetic excitation

Ecological unit without oil lubrication loop

No external cooling system required

Silent unit and best integration in site and landscape

Reduction of the civil costs

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New Technologies

Tap the untapped resources

Tidal power plants

Seawater-proof bulb turbines

World‘s largest tidal plant

Sihwa Tidal / Korea (10 x 26 MW)

Commissioning in 2011

Tidal stream power plants

distributed underwater installation on the

seabed

HS300 (300kW) – Hammerfest / Norway

world’s first installation synchronized

to the grid

successfully in operation since 2004

(9,500 h, 98% availability)

HS1000 (1MW) – EMEC / Scotland

In commercial operation since October

2011

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Investments in

rehabilitation

of existing plants

Investments in

new capacity

Electricity Market

Rising electricity

consumption

per capita

Urbanization

and

industrialization

Liberalization

of electricity

markets

Insufficient

capacity

Grid

security

Higher and

volatile fossil

fuel prices

Legal

restrictions

(CO2)

Increasing

electricity

prices

Population

growth

The Market

Drivers for investments in power generation

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Renewable energy development on the Mekong River

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Iceland

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In 2005, Landsvirkjun, national power

company of Iceland, produced 7,143 GWh of

electricity in total, of which 6,676 GWh or 93%

was produced via hydroelectric power plants

5,193 GWh or 72% was used for power-

intensive industries like aluminum smelting

In 2009 Iceland built its

biggest hydroelectric project to date, a 690

MW hydroelectric plant to provide energy for

another aluminum smelter, Kárahnjúkar

Hydropower Plant (left side)

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Abundant renewable energy/ non tradable energy

Declining oil and gas resources

Abundant coal resources/ tradable fuels

Abundant mineral resources mined and exported unprocessed

Unequal treatment towards the different type of energy resources

Renewable energy is considered as non tradable commodity

Majority of Indonesian population is unaware about renewable energy

No Indonesian renewable energy champions and lobby

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Awareness and Cost Benefits

Lack of technical Expertise

Long development lead time

Remote Location and Access Infrastructure

Over population and resettlement

Environmental discrimination

Inconsistent legal Framework

Short Term Political Goals

Investment cost

Investor attractive PPA tariffs and permitting structure

Limited Renewable Energy Banking experience and know how

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The Constraints of Renewable Energy Development

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Renewable energies especially geothermal , and hydropower needs

careful planning and assessment. The expertise, creativity and

knowledge of the engineer is very much needed and insufficient

knowledge results in:

Poor performance of feasibility studies

Poor performance of the choice of equipment and machines

Poor performance of location choice

Brings the sustainability of the project in jeopardy

Brings the environment in danger

That’s why the need on “Know How Cooperation” with foreign

investors is encouraged and welcome by the new Administration

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Issues and Remedies - Know-How

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Clear economic understanding of sustainable renewable energy development by

Governments institutions and BANKS as well as Investors

Correct assessment of Development Risk and the distribution of it

Consistent legal Framework and Jurisdiction

Sanctuary of a contracts

Land rights / acquisition issues and permitting structure

Resettlement requirements issues

Clear universal environmental assessment rules as introduced by IHA

Bankable PPA contracts

Attraction of foreign direct investment and expertise

Attraction of foreign development assistance and expertise

Sustainable development of Renewable Energy Resources for the benefit of the

people of Indonesia

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Issues and Remedies – Economy and Financial

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Maximization the use of renewable energy as the primary energy resources for the

development of energy hungry industries

creating an integrated working and living hub

synergy of Industries

HR &Education Systems

R & D (Self Sustainable Excellence Synergy Hub)

Job creation and poverty alleviation

Increase Tax Revenues

Development of several hubs for different industry clusters

Establish a second transmigration move for white collar workers and blue collar

workers with the focus of HR development

Maintaining competitive edge through R & D

Leading to sustainable economic development base on Self Sustainable Excellence

“hubs” in several parts in the Region

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Renewed Objectives with the Support of Renewable Energy

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@ Wayang Windu 110 MW, @ Darajat 145 MW

@ Gn Salak 375 MW, @ Kamojang 140 MW

@ Sibayak 2 MW @ Lahendong 20 MW

@ Dieng 60 MW

# 741.4 MW # 160 MW

# 3.568.3 MW

# 180.8 MW

# 27.2 MW

# 31.52 MW

Potential and Installed Capacity for Hydro & Geothermal

# 43.68 MW

Installed Potential

# Hydro 4,400MW 75,000MW

@ Geothermal 824MW 27,000MW

2007 2008 2009

343,600,300 436,325,000 523,590,000

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To be updated

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VALE (Sorowako, S. Sulawesi) – Private Company Initiative

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Name Karebbe (left) Larona (middle) Balambano (right)

Installed Capacity (MW) 2 X 65 3 x 67 2 x 68

Start of Operation 2011 1979 1999

Turbines Francis Vertical (200 rpm, Head: 70.8 m) Francis Vertical (272.7 rpm, Head: 140-

142.3 m)

Francis Vertical (214.3 rpm, Head: 83.5 -

86.5 m)

Generator 200 rpm, Capacity: 78 MVA, Voltage:

11,000 V

272.7 rpm, Capacity: 85 MVA, Voltage:

11,000 V

214.3 rpm, Capacity: 80 MVA, Voltage:

11,000 V

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LOKASI PLTA DI KALIMANTAN UTARA

Besahan(Kayan-K3)

Sungai Kayan, Kabupaten

Bulungan

Long Sepayang

(Mentarang 3), Sungai

Mentarang, Kabupaten

Bulungan

2014/11/20 24

N. Kalimantan Province – Regional Government Initiative

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2 approaches for harnessing Renewable Energy

(way forward)

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Hydro Power Potential

Development Strategy

(RUKN) ͣ

Demand Driven

Development Demand Creation

Development

Electricity Power

Development Plan by

PLN ( RUPTL) b

Hydro Power Developed

4,284 MW

Renewable Energy Based

Industrial Development

(REBID)

Hydro Power Potential

70,692 MW

Future Direction of Hydro Power

Development in Indonesia (a) RUKN : National Electric Power Development Plan

(b) RUPTL : Electricity Planning by National Electricity

Company (PLN)

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Classic Integrated PPA Approach

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Characteristics:

Top down paradigm (GOI offer targeted locations to interested investors)

Grid connected

Based on demand (population density)

Based on RUKN and RUPTL

Government role and presence as regulator

Consider environmental and spatial zoning

PLN as single off-taker in PPA

Problems:

Source of funding from State Budget, PLN’s operating profit and loan

Heavily reliance on PLN’s capital strengthening

Obstacles from high Debt to Equity ratio of PLN

Portion of others purchasers beyond PLN is relatively insignificant

No breakthrough to overcome realization gap between potential and installed

Risk of electricity consumption growth surpass GOI’s projection

Risk of bottlenecking of transmission system

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REBID Approach

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Characteristics:

Bottom up paradigm (interested investors come with integrated package with end-user industries)

Isolated system

Based on supply (electricity creates its own demand for surrounding industry)

Based on private needs

Government role and presence as regulator (now still inexistence)

Consider environmental and spatial zoning (now still inexistence)

Source of funding from private companies

Not depend on PLN’s capital strengthening

High Debt to Equity ratio of PLN is not a concern

Industry as off-taker

Portion of others purchasers beyond PLN is significant

Breakthrough to overcome realization gap between potential and installed

Problems:

Under single Authority nationwide or regional Authority (Otorita Daerah) to be regulated by GOI

Risk of concentration of supply to be regulated by the Authority

Risk of concentration of concession of strategic resources to be regulated by GOI

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Benefit of REBID

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Sustainable economic & industrial development

The Benefits

Development of several hubs of industry clusters

Synergy of Industries

Job creation & poverty alleviation

Creating an integrated working & living hub

Establish a second transmigration move

R & D (Self Sustainable Excellence Synergy Hub)

Maintaining competitive edge through R & D

HR & Education Systems

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Flow Diagram Towards REBID Development

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Supported

by

Identification the

location of natural

resources in

Indonesia

Filter the best location

positioning base on land

volume of energy strategic

location

REBID’s

Policy framework:

Marketing Development

Strategy

Legal

Institutional

Commercial

Industrial Development

Strategy Institutional Development

Strategy

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Planned Hydro

☒ Iron & Steel

☐ Nitrogen

© Coal

Pet Petroleum

☒ Iron

☒ ☒

©

©

©

Calcium

Cement

Pet

Pet

Pet

Pet

Pet Pet Pet

Pet

Pet

Pet

Pet

Pet

Pet

Pet

©

©

© ©

©

LNG

LNG Pet

Pet

Pet

NG

NG

NG

NG

NG

Pet

Pet Pet ©

©

©

©

G

Total Sumatra

8,000 MW

Tot Kalimantan

15,000 MW

Tot Sulawesi

6,000 MW

Hydro

Port

River

Total Papua 20,000

MW

Hydro Power Potential for REBID in Indonesia

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CONTACTS

BOARD OF COMMISSIONERS:

I Gusti Made Ariaguna, [email protected]

Wolfgang Semper, [email protected]

BOARD OF DIRECTORS:

Josef M. Ullmer, [email protected]

Ichjar Musa, [email protected]

LARGE HYDRO:

Gerhard Enzenhofer, [email protected]

Martin Plouzek, [email protected]

COMPACT HYDRO / MATRIX TURBINE:

Thomson Hugeng, [email protected]

Meiwardi Yuswan, [email protected]

SERVICE & REHAB:

Thomas Locher, [email protected]

Hadirat Burmeister, [email protected]

AUTOMATION & SCADA:

Fx Prasetyoadi, [email protected]

Reza Fakhrizal, [email protected]

ELECTRIC POWER SYSTEMS

San Akri, [email protected]

INSTALLATION & SERVICES:

Hari Hartono, [email protected]

PT. ANDRITZ HYDRO

Jl. Talang No. 3

Jakarta 10320

INDONESIA

Phone: +62 (21) 390 6929

Fax: +62 (21) 390 5006

www.andritz.com

ANDRITZ HYDRO GmbH

Head Office

Eibesbrunnergasse 20

1120 Vienna

Austria

Phone: +43 (5) 0805-5000

Fax: +43 (5) 0805-1015

www.andritz.com

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Malaysia ANDRITZ POWER SDN BHD

(860223-M)

A-9-D2, Block A, Plaza Mont Kiara,

2, Jalan Kiara, Mont Kiara

50480 Kuala Lumpur, Malaysia

Phone: +603 62011741

Fax: +603 62012758

Contact person:

Michael Moggie

([email protected])

Philippines ANDRITZ POWER Inc.

Unit 3004,

88 Corporate Center

Makati City, 1227

Philippines

Phone: +63 (0) 2501 50 93

Fax: +63 (0) 2501 50 96

Contact person:

Albin Koenigshofer

([email protected])

China ANDRITZ Technologies Ltd.

Hangzhou Branch Office

13F, B2, 560 Jincheng Road,

Xinyi, Xiaoshan, China

Phone: +86 571 83788101

Beijing Branch Office

18F/B1-7 Hanwei Plaza,

7 Guanghua Road, 100004 Beijing, China

Phone: +86 10 6561 3388 887

Fax: +86 10 65614191

Contact person:

Frank Mette

([email protected])

Vietnam/Laos Andritz Hydro

Representative Office Hanoi

58 Trieu Viet Vuong Street

Hai Ba Trung District

Hanoi, Vietnam

Phone: +84 4 39 454 765

Fax: +84 4 39 454 773

Contact person:

Martin Koubek

([email protected])

India ANDRITZ HYDRO Private Limited

49/5, Mathura Road, Village Prithla,

District Palwal – 121 102 (Haryana) India

Phone: +91.1275.262161-63

Fax: +91.1275.262055

Contact person:

Anand Mahadevan

([email protected])

Australia / NZ ANDRITZ PTY LTD

56-58 Gaine Road, Dandenong South

Melbourne, Victoria 3175

Australia

Phone: +61 38795 9840

Fax: +61 (3) 97994899

Contact person:

Stefan W-Cambridge

([email protected])

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Myanmar Andritz Hydro

Shwe Taung Gyar Street 52 A,

Bahan Township, Yangon,

Myanmar

Phone: +95-1-536760

Contact person:

Harald Friedl

([email protected])