Challenges and Opportunities of Renewable Power ... 2014/Energy-Renewable… · Challenges and...
Transcript of Challenges and Opportunities of Renewable Power ... 2014/Energy-Renewable… · Challenges and...
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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
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.
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)
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
17 www.andritz.com
18
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
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
20 www.andritz.com
Issues and Remedies – Economy and Financial
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
@ 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
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
LOKASI PLTA DI KALIMANTAN UTARA
Besahan(Kayan-K3)
Sungai Kayan, Kabupaten
Bulungan
Long Sepayang
(Mentarang 3), Sungai
Mentarang, Kabupaten
Bulungan
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N. Kalimantan Province – Regional Government Initiative
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)
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
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
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
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
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 ©
©
©
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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
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
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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
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
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
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
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
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
32
Myanmar Andritz Hydro
Shwe Taung Gyar Street 52 A,
Bahan Township, Yangon,
Myanmar
Phone: +95-1-536760
Contact person:
Harald Friedl