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Capacity Development and Strengthening for
Energy Policy Formulation and Implementation of
Sustainable Energy Projects In Indonesia
CASINDO
Regional Energy Efficiency Planning 2011
Regional CASINDO Team of Yogyakarta
Center of Regional Energy Management
of Universitas Muhammadiyah Yogyakarta
(PUSPER UMY)
Author:
1. Pamungkas Jutta Prahara (PUSPER-Universitas Muhammadiyah
Yogyakarta)
2. Ir. Tony K. Hariadi, M.T. (PUSPER-Universitas Muhammadiyah
Yogyakarta)
Steering Committee:
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1. Raouf Saidi, M.Sc. (Energy research Centre of the
Netherlands)
2. Nico van der Linden, M.Sc. (Energy research Centre of the
Netherlands)
© 2012 CASINDO Program, Pusat Studi Pengelolaan Energi Regional
Universitas
Muhammadiyah Yogyakarta (PUSPER-UMY) and Energy research Centre
of the Netherlands
(ECN)
http://www.casindo.info
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Preface
This report is deliverable No.24 of the project ‘Capacity
development and strengthening
for energy policy formulation and implementation of Sustainable
energy projects in
INDOnesia (CASINDO)’. The CASINDO project aims to establish a
self-sustaining and self-
developing structure at both the national and regional level to
build and strengthen human
capacity to enable the provinces of North Sumatra, Yogyakarta,
Central Java, West Nusa
Tenggara and Papua to formulate sound energy policies and to
develop and implement
sustainable energy projects.
The CASINDO project is funded by NL Agency and implemented by a
consortium co-
ordinated jointly by the Indonesian Ministry of Energy and
Mineral Resources and the Energy
research Centre of the Netherlands (ECN), comprising the
following organisations:
Indonesian Ministry of Energy and Mineral Recourses,
Jakarta.
Muhammadiyah University of Yogyakarta, Yogyakarta.
Diponegoro University, Semarang.
University of Sumatra Utara, Medan.
University of Mataram, Mataram.
University of Cenderawasih, Jayapura.
Institute of Technology of Bandung (ITB), Bandung.
Technical Education Development Centre (TEDC), Bandung.
Technical University Eindhoven, Eindhoven.
ETC-Nederland, Leusden.
Energy research Centre of the Netherlands ECN, Petten.
The sole responsibility for the content of this report lies with
the authors. It does not
represent the opinion of NL Agency and NL Agency is not
responsible for any use that may
be made of the information contained herein.
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List of Abbreviations: DIY : Daerah Istimewa Yogyakarta/Special
Region of Yogyakarta
AC : Air Conditioning
BOE : Barrel of Oil Equivalent
RUED : Rencana Umum Energi Dareah/Regional Energy Master
Plan
JAMALI : Electricity Interconnection System of
Jawa-Madura-Bali
MVA : Mega Volt-Ampere
TWh : Terra Watt Hour
PLN : Perusahaan Listrik Negara (National Electricity Company of
Indonesia)
IDR : Indonesia Rupiah
CFL : Cloro-Fluoro Lamps
TDL : Tarif Dasar Listrik/Basic Electricity Tariff
MWh : Mega Watt Hour
CRT : Cathode Ray Tube
BPS : Biro Pusat Statistik/Center of Statistic Bureau
kVA : Kilo Volt-Ampere
kWh : Kilo Watt Hour
NPV : Net Present Value
EE : Energy Efficiency
NGO : Non-Government Organization
GWh : Giga Watt Hour
HP : Horse Power
EPC : Energy Performance Contracts
ESCO : Energy Services Company
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TABLE OF CONTENTS
Preface
.................................................................................................................................
i
TABLE OF CONTENTS
..........................................................................................................
iii
CHAPTER 1. EXECUTIVE SUMMARY
.....................................................................................
1
CHAPTER 2. INTRODUCTION
................................................................................................
2
2.1. Background 2
2.2. Energy Efficiency Objectives: 3
2.3. Overview Energy Sector In Daerah Istimewa Yogyakarta 3
2.3.1. Energy Policy 3
2.3.2. Electricity 4
2.3.3. Fossil Fuel 5
2.3.4. Target Groups 7
CHAPTER 3. ASSUMPTIONS
..................................................................................................
8
3.1. External Factors 8
3.2. Local Assumptions 9
3.3. Key Data 9
3.3.1. General Assumptions 10
3.3.2. Household Sector 10
3.3.3. Commercial Sector 10
3.3.4. Industrial Sector 11
3.3.5. Social Sector 11
3.3.6. Public Sector 11
CHAPTER 4. RECOMMENDATION SCENARIO
........................................................................
12
4.1. Determining Energy Efficiency Target 12
4.2. Household Sector 12
4.3. Commercial, Industrial, Social, and Public Sector 25
CHAPTER 5. CONCLUDING ANALYSES AND DISCUSSIONS
...................................................... 35
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CHAPTER 6. APPENDICES WITH ASSUMPTIONS
....................................................................
40
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CHAPTER 1. EXECUTIVE SUMMARY
Increasing energy demand and decreasing energy supply has to be
faced by
strategic measures. Daerah Istimewa Yogyakarta (DIY) faces the
same problem with
more burdens since DIY depends on energy supply from other
region.
One strategic measure is to reduce energy consumption across
sectors. There
are, in total, 805.468 electricity consumers in Yogyakarta in
the household, social and
industrial sector. Through direct measures electricity
consumption can be reduced and
financial resources can be saved. One of the measures is energy
conservation
campaign to all sectors in the region which expected to reduce
the energy spent, for
example to switch off electronic devices totally instead of to
put them in standby
mode.
Survey in the region indicated there are various use of
electronic devices in
household dominated by refrigeration, television, and AC’s. In
industries and social,
AC and motors are dominating the sector. By applying inverter
technology and
refrigerant retrofitting to air conditioner can reduce
significantly the energy
consumption. Changing from old refrigerator with new energy
saver refrigerator
would also reduce energy consumption.
Strategic energy policy and tools has to be identified to push
the community to
apply the recommended measure. Energy labeling, tax reduction
program and energy
price increase would make the energy conservation program more
feasible and create
an environment where inventing in energy efficiency is more
attractive. Furthermore a
financial resource policy has to be prepared for community
education through
promotion and campaign on energy conservation program.
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CHAPTER 2. INTRODUCTION
2.1. Background
The share of national primary energy in Indonesia in 2009
reached 1,065 million BOE
with the composition of 50.3% petroleum, natural gas 22.9%, coal
22%, 3% hydro, and
geothermal 1.6%. Energy elasticity of 1.63, 66.7%
electrification ratio, energy consumption
growth rate average of 7% per year, and the subsidy amounted to
98.96 trillion rupiah.
If the national energy management conducted business as usual,
projected year 2025 share of
national primary energy reached 5,100 million BOE with oil
composition 41.7%, coal 34.6%, 20.6%
natural gas, and renewable energy 3.1%.
Conversely, if following the direction of national energy policy
which is reflected in the
25/25 vision of renewable energy, projected share of national
energy in 2025 reached 3,200
million BOE. Means there are savings of 37.25% obtained through
energy conservation.
Composition of energy also has been changed into 20% of
petroleum, natural gas 23%, coal
32%, and 25% renewable energy obtained through energy
diversification efforts.
In relation to environmental issues, including climate change
mitigation, carbon trading, and
reduction of carbon emissions the government of Indonesia is
committed to reducing carbon emissions
by 26% from the current state in 2020. Reducing carbon emissions
is obtained from the forestry sector
by 14%, 6% of energy, and waste management at 6%.
According to Law no. 30 of 2007 on energy, among others, stated
that in formulating
national energy plan includes the Central Government and the
Regional Command attention
to the opinions and input from the community. Furthermore, in
the Local Government Act
mandated to plan regional energy referring to the national
energy plan. Thus the general plan of
national and regional energy required interaction between
central and local governments. To increase the capacity of
Institutional Resources in the central and regional levels in order
interactions were
delivered five (5) provinces to join the program CASINDO.
The CASINDO program aims to build and strengthen capacity of
institutional resources in the
Provinces of North Sumatra, Yogyakarta, Central Java, West Nusa
Tenggara, and Papua in formulating
policies on renewable energy and energy efficiency, and develop
and implement renewable energy
projects.
This program aims to support Daerah Istimewa Yogyakarta Province
in realizing a
vision to make energy as infrastructure protection and welfare
of the people through a policy
combining the efficient use of fossil fuels and developing low
emission renewable energy
technologies.
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2.2. Energy Efficiency Objectives:
The purposes of energy efficiency master plan are as
follows:
a. Utilize energy efficiently and rationally without limiting
the function in support of national development.
b. Using the optimal energy needed to reduce the cost incurred
(cost-effective energy saving).
c. Maintaining the sustainability of natural resources in the
form of an energy source through a policy of technology selection
and use energy efficiently, rationally, and to
realize a sustainable energy supply capability.
d. Reducing greenhouse gas emissions and emissions of other
gases (SOx, NOx) to become an important part in preventing or
mitigating climate change.
2.3. Overview Energy Sector In Daerah Istimewa Yogyakarta
2.3.1. Energy Policy
Energy policy in DIY, especially as related to energy efficiency
are adopted directly
from the national energy policy. This is because there is no
regional master plan and local
regulations are published as the elaboration of a national
energy policy.
National energy policy refers to:
a. Presidential Regulation No. 5/2006 on National Energy Policy.
Implementation of energy conservation and energy efficiency, energy
audit,
partnership programs with stakeholder.
b. Law No. 30/2007 on Energy.
Energy conservation becomes responsibility of government
together with local
government, entrepreneur, and community. Implementation of
conservation program
was set with Government Regulation or Regional Regulation. These
also include
preparation of academic manuscript of RUED.
c. Law No. 15/1985 on Electricity. d. Presidential Instruction
No. 2/2008 regarding energy and water efficiency
Innovation action for energy and water savings in institution /
state own
company / local company, formatting energy task force,
conducting monitoring and
evaluation of energy savings.
e. Government Regulation no. 70/2009 concerning energy
efficiency. Energy conservation becomes responsibility of
government together with local
government, entrepreneur, and community. Guidance and
supervision by government
and local government, formatting energy task force, training and
technical assistance,
monitoring and evaluation of energy savings.
f. Minister Regulation of Energy and Mining Resources as
Chairman of Bakoren No. 100.K/48/M.PE/1995 on Rencana Induk
Konservasi Energi Nasional / National
Energy Conservation Master Plan (Riken 1995 and 2005).
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Information Policy, Set up Policy, Incentive Policy, Market
Transformation
Policies, training, forum, energy audit, partnership program,
DSM program (energy-
efficient lightings for RT and offices).
g. Law No. 28/2002 on Buildings; Government Regulation No.
36/2005 on Implementation Guidance of UU No. 28/2002; Minister
Regulation of PU No.
29/PRT/M/2006 on Technical Requirements for Building
Guidelines.
h. Government Regulation No. 3/2005 on provision and utilization
of electricity.
2.3.2. Electricity
The region has no large scale generator systems and Yogyakarta
is in the grid system of
JAMALI. DIY also has no fossil fuel reserves, and the potential
for renewable energy is not
being utilized yet. Because the electricity energy needs will be
fulfilled by JAMALI
interconnection system, so the generator system plan will also
be in-line with the generator
system development throughout in JAMALI interconnection system.
With this system,
electricity supply in Yogyakarta may come from several
generators within that
interconnection. Now, Yogyakarta electricity needs are supplied
by a substation spread over
five regions with a total capacity of 616 MVA. This can be seen
at table 1 (Annex).
Consumers of PT. PLN (Persero) APJ Yogyakarta from year 2007 to
2008 are
respectively around 745 thousand and 770 thousand. Most of them
are in the household
sectors; 93.21%. The biggest consumer is in the household
sector; 55.95%, and the total value
about IDR 920 million, also biggest contributor is households
with 50.33%. In the figure 2.1
below can be seen that electricity market share of industry
increase of 1% in 2008 compare
with year 2007, and as otherwise the household has decrease 1%.
But for total electricity
market share are increased by 6.75%. The electricity markets in
year 2007 to 2008 are
respectively around 1.48 TWh, and 1.58 TWh. For the total number
of electricity consumer in
Yogyakarta is shown in this table 2 (annex).
(a)
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(b)
(c)
Figure 2.1. (a). Electricity market share by cathegories for
year 2007, (b). Electricity
market share by cathegories for year 2008, and (c). Comparison
of total Electricity market for
year 2007 and 2008.
2.3.3. Fossil Fuel
In DIY, fossil fuels are energy carriers that are used for the
household, industry,
commercial, and transportation sector. Transportation is the
biggest consumer of oil energy,
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which is using premium as much as 2.03 million BOE in year 2007
and increase to 2.12
million BOE in year 2008, and diesel oil as 466 thousand BOE in
year 2007 and increase to
485 thousand BOE in year 2008. Growth rate for premium and
diesel oil are 4%. Energy
consumptions for transportation sector, are shown at the figure
bellow:
(a)
(b)
Figure 2.2. (a) Energy used in transportation sector year 2007,
(b) Energy used in
transportation
sector year 2008
Motorcycles dominate the energy consumption by type in transport
in D.I. Yogyakarta
province. It reached 908 thousand BOE in 2007 and 965 thousand
BOE in 2008. This is
followed by passanger cars with energy consumption as 906
thousand BOE in 2007 and as
948 thousand BOE in 2008, and dominated with passenger car that
use premium for its fuel,
which is 864 tousand BOE in 2007 and 900 thousand BOE in 2008.
Energy consumptions for
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truck and bus in 2007 is respectively 528 thousand BOE and 133
thousand BOE, and in 2008
is 534 thousand BOE and 139 thousand BOE. Detailed energy
consumptions for
transportation sector in 2007 and 2008 are shown in table 3
(annex).
The activities was not produce analysis for transportation
sector because it has technical
difficulty in calculating and draw assumptions to calculate
total energy savings, eventhough
the most potential energy savings are came from this sector. The
sector is dominated by
private vehicles. To be analyzed, widely use of public transport
and fewer private vehicles
must be achieved. The condition implies that the infrastructure
financing for development of
public transport will costs very high.
2.3.4. Target Groups
The biggest consumer groups are the household (about 54.94%),
business and industries
(33.38%), social and government agencies (11.68%) sectors, thus
these sectors are being
targeted for energy efficiency efforts. Surveys in the region
indicate there are various uses of
electronic appliances in households such as air conditioning
(AC), refrigerator, television, and
desktop personal computer (PC). In industry, business, and
social, AC and motors are
frequently used. Thus electrical appliances and equipments are
the target for energy efficiency
strategies.
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CHAPTER 3. ASSUMPTIONS
It was decided to take DIY as research objects with data
retrieval method are random
sampled survey combine with existing data due to limitations.
Combination method is expected to
produce valid data to represent the supply and demand for
electricity with very good
comparison.
3.1. External Factors
National energy conservation program is implemented through: (1)
the creation of
public awareness on energy conservation, (2) education and
training, (3) opens as the central
clearinghouse of information about energy conservation
activities, (4) a joint program of
energy conservation, competency certification program manager
energy for buildings and
industrial sectors, and (5) labeling program of efficiency level
of electric equipment.
Target energy efficiency is obtained by the elasticity of energy
smaller than 1 in 2025 and a
decrease in energy intensity of 1 percent per year until 2025.
The target levels of efficiency labeling
programs are like tables 3.1 and 3.2 below:
Table 3.1. Target of electrical equipment labeling
Y
ear Appliances
Ye
ar Appliances
2
010
CFL, refrigerator and
television
20
13
Wash machine and rice
cooker
2
011 AC, fan
20
14 Other appliances
2
012 Ballast and electric motor
Table 3.2. CFL Labeling
Power
(Watt)
Efficacy (Lumen/Watt)
5 - 9 45 – >49 – >52 > 55
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49 52 – 55
10 –
15
46 –
51
> 51 –
54
> 54
– 57 > 57
16 –
25
47 –
53
> 53 –
56
> 56
– 59 > 59
≥ 26 48 –
55
> 55 –
58
> 58
– 61 > 61
3.2. Local Assumptions
Until now, regulations and policies on energy conservation /
energy efficiency in DIY
does not exist, so it is assumed to refer to national
regulations.
3.3. Key Data
Key data used includes the value of equipment investment costs,
energy consumption of
equipment, the amount of electrical energy can be saved by more
efficient electrical
equipment or through changes in behavior in using the equipment,
the price of electric energy,
and how long the investment cost can be returned if the use of
equipment more efficient.
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3.3.1. General Assumptions Discount rates 12 % per year
Implementing Variable
Speed Drive
1,000,000 IDR/kWh
equipments
Occurs on motors, split AC’s
and central AC’s
Retrofitting Refrigerant 280,000 IDR per unit AC’s Occurs on
commercial,
social, and public with split
AC’s
Price of Electrical energy Increase maximum 20 % Political
situation difficulties
to establish regulation
Allowance of Subsidy
Scenario
Limit to 50 %
Equipment Technical
lifetime
5 years In line with ministry standard
analysis
3.3.2. Household Sector Electricity Price Using Basic
Electricity
Tariff (TDL) 2010
Consist of 2 groups of customers:
R-1/TR 450 - 900 VA price is 495
IDR/kWh
R-1/TR 1,300 – 2,200 VA price is 790
IDR/kWh
Household with power connected above 3,500 VA only applied for
behavior approach and
exclude in analysis because they already implement energy
efficiency equipment obtained
from survey
Survey Data Total respondent is 320
(urban 200, suburban 120)
Own refrigerator: 66%
Own CRT TV: 55 %
Own AC: 29 %
3.3.3. Commercial Sector
Analysis are performed on hotels and lodging. Data about hotels
and lodging were
obtained from PLN, government, and BPS, in detail:
Electricity Price Using Basic Electricity Tariff
(TDL) 2010
Consist of 2 groups of
customers:
B-1/TR 2,200 – 5,500 VA
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B-2/TR 6,600 VA – 200
kVA
Price is 900 IDR/kWh
Split AC’s Average 12 pieces per hotel Applied by non star
hotels
Most of star hotels use central AC’s in systems
Hotel amount Star hotels: 38
non star hotels: 1030
3.3.4. Industrial Sector Electricity Price Using Basic
Electricity Tariff
(TDL) 2010
I-3/TM above 200 kVA price
is 750 IDR/kWh
Analysis performed Leather, limestone, food and
wood industries
Leather: 20 industries
Limestone: 49 industries
Food: 36 industries
Wood: 30 industries
Improvement of Unbalance
Voltage
25,000,000 IDR Used to hire consultant
Energy savings 15,500
kWh/year
3.3.5. Social Sector Electricity Price Using Basic Electricity
Tariff
(TDL) 2010
S-2/TR 3,500 VA - 200 kVA
price is 755 IDR/kWh
Analysis performed Type C hospitals and above Total is 63
hospitals
3.3.6. Public Sector Electricity Price Using Basic Electricity
Tariff
(TDL) 2010
2 groups of customers:
P-1/TR 2,200 – 5,500 VA
P-2/TR 6,600 VA – 200 kVA
Price is 900 IDR/kWh
Analysis performed Government building P-1/TR 270 buildings
P-2/TR 146 buildings
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CHAPTER 4. RECOMMENDATION SCENARIO
Recommendations scenarios involve determining the energy
efficiency target,
calculating the potential savings (energy and energy costs), and
analyze the obstacles in
implementing energy efficiency in the DIY.
4.1. Determining Energy Efficiency Target
Energy efficiency can be done through two ways, namely by
changing:
(1) technology from energy-intensive equipment to more
energy-efficient equipment
(2) consumer behavior.
Both these changes require an initial investment. This can be to
purchase modern and
efficient technology, improved regulation or training in the
field of improved energy
management. For an energy user - be it in the household,
industrial, transport, commercial or
public sector - the interest to invest in an energy efficiency
measure is dependent on:
1. the size of the initial investment,
2. the payback period of that investment,
3. the total energy and cost savings.
4.2. Household Sector
Energy efficiency measures are found for refrigeration,
television, and air conditioning
(AC).
a. Refrigeration
A refrigerator works 24 hours and operates effectively for about
16 hours and is in
standby mode for roughly 8 hours. The amount of customers and
energy savings potential of
refrigerator is high.
Assumptions of refrigerator replacement
Current type of refrigerator : 1. 0.120
kW and
2. 0.07
kW IDR O/fridge
Operation time : 16 hours/day
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New type of refrigerator : 0.03 kW
Price IDR
1,500,000
Generating costs : IDR 1,300 at normal time
and IDR 1,500 at peak time (5 pm to 10 pm)
From the calculation, the electrical energy cost savings and
domestic customers
for the replacement of refrigerator are:
Figure 4.1. NPV Difference for 0.12 kW and 0.07 kW refrigerators
with price IDR 495
and IDR 790
Only a household with a 0.12 kW refrigerator at an energy cost
of IDR 790 will return
their investment of IDR 1,053 after 44 month. The next potential
customer is a household
with a 0.12 kW at energy cost of IDR 495 but didn’t have NPV
savings. For 0.07 kW groups
were not potential for NPV savings calculations.
From survey and customer’s data, we can obtain an amount of
potential
customers that can be implemented for replacement program. This
shown in below:
Table 4.1. Household Customers for Refrigerators
Group Total connected Total with
fridge
0.12 kW fridge 0.07 kW fridge
Case 1 (495
IDR/kWh)
671,102 436,216 256,059 180,157
Case 2 (790
IDR/kWh)
76,411 49,667 15,893 33,744
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Figure 4.2. Energy Savings for 0.12 kW and 0.07 kW at price IDR
495 and IDR 790
This shown that the largest total technical potential is for
people with a 0.12 kW
refrigerator in case 1, and the largest potential group is the
IDR 495/kWh group. The
second potential is for people with 0.07 kW refrigerators in
case 1. It’s on a same level
of potential for case 2, for people with a 0.12 kW and 0.7 kW
refrigerators. Total
energy savings are identified around 950 GWh within five years
or 190 GWh in one
year. The percentage is 6% from total energy consumption in
households in 2010 with
assumption growth 6.75% per year and base year is 2008.
Barrier analysis
From the above two analyses, the following barriers have been
identified:
Financial barriers:
The upfront investment cost of 1.5 million is probably too high,
especially for the lower
income 495 IDR group and the payback period is too long to offer
the household any financial
benefits. This is caused by a combination of a relatively high
investment cost and a very low
price for electricity.
Social barriers:
Consumers could benefit from increased knowledge about the
benefits of EE
refrigeration. This could be in the form of labeling, which can
be used for consumers who are
already thinking about buying a new refrigerator.
Policy Measures
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For the 790 group with 0.12 kW, increasing the electricity price
by 20% reduces
the payback period from 44 months to 36 months.
For the 495 group with 0.07 kW, the barrier is the same as the
495 group with
0.12 kW, which is upfront investment cost and does not offer the
household financial
benefits. From a household perspective the IDR 495 group the
following scenarios are
possible:
Figure 4.3. Policy options for a weighted average of 0.12 kW and
0.07 kW refrigerators
in the 495 group
For this group we see that when using these measures, the
electricity cost is still
too low to make a large impact on the total savings after 5
years. The only real benefit
is the reduced investment cost for consumers. From this we can
conclude:
1. Only the options with a subsidy break even
2. Only the option with a subsidy and a higher energy price will
generate savings for the
household
This demands a different approach where instead of looking at
consumers immediately
changing their refrigerator, we only analyze consumers who are
in the market for a new
refrigerator. Here consumers have a choice between a 75 w unit
at 1.75 million IDR and more
efficient 30 w unit at 1.5 million IDR. Below is the NPV
analysis for this situation:
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Figure 4.4. NPV Difference for New Refrigerator Consumers at
price IDR 495 and IDR
790
Here we see that the financial conditions are far more
favorable, and no financial
barriers exist. The remaining barrier is related to why
consumers would choose for the
more efficient option. Due to a lack of information, consumers
are not able to judge
the energy use of each refrigerator. However, a gradual increase
in energy costs could
improve the financial conditions drastically, and create more
motivation for choosing
an Energy Efficient refrigerator.
Policy scenario for the entire region
For the scenario where all consumers immediately replace their
refrigerator, the
subsidy and increased price policy options mentioned above will
be investigated using
the following penetration scenarios for both groups:
Table 4.2. Penetration Scenario for Refrigerator
Group Tot
al
connected
To
tal with
fridge
0.
12 kW
fridge
0.
07 kW
fridge
Pene
tration
Opti
mistic
Pene
tration
Mini
mal
Case 1 (495
IDR/kWh)
671
,102
43
6,216
2
56,059
1
80,157
30% 20%
Case 2 (790
IDR/kWh)
76,
411
49,
667
1
5,893
3
3,744
40% 25%
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Figure 4.5. Subsidy, Household Savings, and Government Savings
for Refrigerators
In this two policy options, subsidy and increase electricity
tariff plus subsidy, offers
small amount of benefit with differences are not significant. So
it is not interesting enough to
be implemented. Yet, this should be done for energy efficiency
and conservation purpose
because the energy savings are quite high. In Government
Savings, the point which compared
is the amount of subsidies to be borne by government that can be
saved, did not calculate
savings gained from raising electricity tariff as a whole.
Increase the electricity tariff can be
used to increase or gained public awareness and wisdom in energy
usage.
For the scenario concerning only consumers who are in the market
for a new
refrigerator, the assumption is made that the total number of
refrigerators sold in Indonesia
(956 thousands units per year) is spread equally amongst all of
the population and remains
constant for the next 5 years.
From the figure below we can see that there is still a
considerable potential that the
largest effects are long term and that policy efforts should
focus on stimulating consumers to
choose energy efficiency refrigerators, to have penetration
rates above 50% and realize large
savings.
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Figure 4.6. Potential Savings for New Refrigerator Consumers at
price IDR 495 and
IDR 790
b. Television
Energy efficiency of the use of television is difficult as it
relates to consumer behavior. If hours of
normal use of television on average is 10 hours a day and it can
be reduced to 8 hours, and put it in turn
off.
Assumptions conditions of reduce operating time of
television
Normal operating time: 10
hours
29 inch television use 0.15 kW
Reduce operating time: 2 hours 21 inch television in standby
mode use 0.005 kW
21 inch television use 0.1 kW 29 inch television in standby
mode use 0.0075 kW
Generating costs : IDR 1,300 at normal time and IDR 1,500 at
peak time (5 pm
to 10 pm)
Penetration scenario for reduce operating time of television
with optimistic 40% and moderate
scenario 30%, and the calculation can be resumed as follows:
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19
Figure 4.7. Subsidy, Household Savings, and Government Savings
for Television
This measure requires a change of behavior and habits.
Investments are borne by government to
encourage public awareness (campaign) and change of behavior for
implementation of policy measures.
The investments would be payback from the target achieved that
being established from the programs.
Then government gives a lot of effort and hard work.
Barrier analysis:
The main barrier is current behavior and a lack of knowledge
regarding energy conservation. For
reduce operating time of television 2 hours from 10 hours become
8 hours, and it is especially difficult
during peak hours between 5 pm to 10 pm. People are also not
aware about the benefits of energy
conservation.
Policy Measures and Recommendation
The attitude of the general public is an important aspect of the
policy framework. A supportive
public opinion towards energy efficiency is beneficial for
policy implementation supporting energy
efficiency, and the continuity of such policy. A supportive
public opinion will influence the market – either
directly through the creation of a larger demand, or indirectly
through stimulating demand and supply by
the commercial sector. Also, the public plays an important role
in consultation processes in many
permitting procedures. To create positive attitude towards
energy efficiency, and allow a demand driven
market to develop, awareness is a first step. Awareness of
environmental problems, climate change, or
other drivers behind energy efficiency would form part of this.
Measures to create awareness are
awareness and promotion campaigns, creation of institutions that
provide access to information, and
education on energy efficiency.
-
20
Voluntary approaches can also be done for successful campaigns.
Introducing efficient electricity is
available to customers on a voluntary basis. The customers of
this efficient electricity are prepared to pay
a premium on their electricity price, and guarantees that they
use energy efficient appliances. This is
monitored by an independent organization, often NGO’s. Efficient
electricity pricing is a voluntary market
initiative of the electricity sector. Private individuals can
also contribute to efficient electricity by
financing investments. Within the private sector, several means
have been developed to stimulate
investment in efficient electricity, such as efficient funds and
shareholder programs.
c. Air Conditioning (AC)
Replace an old AC with energy efficient one that is AC with
inverter. Perhaps AC is
secondary or tertiary needs hence not quite high in household,
which is 29% of total
household customers. But considering AC are include in high
energy capacity for household,
the calculation should be done to give perspective of energy
savings potential that is quite
high.
Assumptions of Air Conditioning replacement
Old type of AC’s : 0.7 kW IDR
0/AC’s
Operation time : 8 hours/day
New type of AC’s : 0.175 kW
Price IDR
5,000,000
Generating costs: IDR 1,300 at
normal time and IDR 1,500 at peak
time (5 pm to 10 pm)
From the calculation, the electrical energy cost savings and
domestic customers for the
replacement of AC are:
Figure 4.8. NPV Difference for 0.7 kW AC’s replacement with
price IDR 495 and IDR 790
-
21
This shown that only a household at case 2 will return their
investment of IDR 46,079 after 51
month, and at case 1 household will return their investment more
than 10 years and also customers are
quite low, and yet for case 1 group are not feasible to
implement the program in that reasons. From here
on we will only analyze the 790 IDR group as the 495 group
normally cannot afford an air conditioning
and will not have any effects on the analysis.
Figure 4.9. Energy Savings for 0.7 kW AC’s replacement with
price IDR 495 and IDR
790
Total technical potential savings is for people with air
conditioning in case 2, and does
not significant savings for people with air conditioning in case
1. This savings in case 2 group
does not quite high but worth to use as consideration to settle
a policy in energy efficiency
usage and energy conservation. Total energy savings are
identified around 167.5 GWh within
five years or simply 33.5 GWh in one year. The percentage is 1%
from total energy
consumption in 2010 with assumption growth 6.75% per year and
base year is 2008.
Barrier analysis:
From the above analyses, the following barriers have been
identified:
Financial barrier:
The upfront investment cost of 5 million is probably too high
and the payback period is
too long to offer the household any financial benefits.
Regulatory barrier:
No energy labeling, no policy for both inefficient product and
efficient product. Not a
lot similar product that available on the market, only one brand
that has issued such
equipment which is feared will lead to monopoly if it does not
handle wisely.
-
22
Social barriers:
Consumers could benefit from increased knowledge about EE air
conditioning. This
could be in the form of labeling, which can be used for
consumers who are already thinking
about buying a new air conditioning.
Policy Measures
From household perspective for price IDR 790 the following
scenarios are
possible:
Figure 4.10. Policy options for 0.7 kW AC’s replacement at price
IDR 790
For this group we see that when taking these options, the
electricity cost give an
impact on total savings after 5 years, which is all scenarios
are break even. But for two
scenarios which are no policy intervention and 20% higher energy
price did not give
much benefit that are break even on 51 and 42 month, hence not
yet attractive
considering the investment is for secondary needs purpose. The
main benefit is the
reduced of energy usage by consumers. From this we can
conclude:
1. Only the options with a subsidy is attractive for
investment
2. The option with a subsidy and a higher energy price with
subsidy will give attractive
options for household
This demands a different approach where instead of looking at
consumers immediately
changing their air conditioning, we only analyze consumers who
are in the market for a new
air conditioning. Here consumers have a choice between a 700 w
unit at 3 million IDR and
more efficient 175 w unit at 5 million IDR, as depicted in the
scenario above. Below is the
NPV analysis for this situation:
-
23
Here we see that the financial conditions are far more
favorable, even thought
financial barriers still exist, the difference investment cost
of 2 million IDR gives
payback period for EE air conditioning in 21 months. The other
barrier is related to
why consumers would choose for the more efficient option. Due to
a lack of
information, consumers are not able to judge the energy use of
each air conditioning.
However, a gradual increase in energy costs could improve the
financial conditions
drastically, and create more motivation for choosing an EE air
conditioning.
Figure 4.11. NPV Difference for New Air Conditioning Consumers
at price IDR 790
Policy Scenario for the region
For price IDR 790 we will investigate the three options
mentioned above, and
that are subsidy and increased price policy options, with the
following penetration
scenarios for each group:
Table 4.3. Penetration Scenario for AC’s replacement at price
IDR 790
Scenarios Total
Connected
Total
with AC
Penetra
tion
Optimistic
Penetra
tion Minimal
20 % higher
price and 10 %
subsidy 76,411 22,159 20%
25 %
Subsidy
-
24
20 % higher
price
8%
Figure 4.12. Subsidy, Household Savings, and Government Savings
for AC’s
replacement
From the figure above, it can be seen that there are savings for
household cases, even
the comparison is not significant between two policy options,
25% subsidies and 10%
subsidies plus raise electricity tariff, but both scenario
options feasible to be implemented. For
raise electricity tariff option offers small amount of benefit,
but it also have to be done within
the framework of energy conservation. In Government Savings, the
point which compared is
the amount of subsidies to be borne by government that can be
saved, did not calculate
savings gained from raising electricity tariff as a whole.
Increase the electricity tariff can be
used to increase or gained public awareness and wisdom in energy
usage.
For the scenario where only consumers who are in the market for
a new air
conditioning, the assumption is made that the total number of
air conditioning sold in
Indonesia (410 thousands units per year) is spread equally
amongst all of the population and
remains constant for the next 5 years.
-
25
Figure 4.13. Potential Savings for New Air Conditioning
Consumers at price IDR 790
From the figure above we can see that there is still a
considerable potential that the
largest effects are long term and that policy efforts should
focus on stimulating consumers to
choose energy efficiency air conditioning, to have penetration
rates above 50% and realize
large savings.
4.3. Commercial, Industrial, Social, and Public Sector
a. Implementation of Variable Speed Drive (VSD)
AC mostly used in hotels and lodging, and hospitals. AC
equipment commonly used
there are two types, namely split and centralized type. In
industry, the biggest loads are
motors. Energy efficiency can be done with implementing variable
speed drive.
Assumptions of Implementing Variable Speed Drive (VSD)
In Commercial sector: split AC
and centralized AC
Operation time AC: 8 hours/day
In Social Sector: split AC Operation time motor: 24
hours/day
In Industrial Sector: motors
Variable Speed Drive Cost:
IDR 1,000,000 / kW equipment
Generating cost: IDR 1,300 at
normal time and IDR 1,500 at peak
time (5 pm to 10 pm)
-
26
The calculation for implementing VSD shows below:
Figure 4.14. NPV Difference for Implementing VSD in Commercial,
Industrial, and
Social Sector
From figure above, it can be seen that there are savings for
implementing VSD at all
four sectors that being analyzed. The most interactive return
investment is at commercial
sector that use centralized AC’s and also split AC’s. They will
return their investment of IDR
187,144 after 25 month for centralized AC’s and of IDR 20,142
after 29 month. At all four
sectors, scenario of implementing VSD are feasible because
payback period is less than 36
month.
-
27
Figure 4.15. KWh Difference of Implementing VSD for Commercial,
Industrial, and
Social Sectors
This shown that the largest total technical potential is for
commercial sector with
a centralized AC’s, and the second potential is for industrial
sector. This potential are
common because in the two sectors using motor with large power
capacity for their
loads. For the social sector should also be seen its KWh
difference in line with
commercial sector with split AC’s because both use split AC’s.
The KWh difference is
the lowest but the KWh savings is quite high. Total energy
savings are identified
around 42.6 GWh within five years or simply 8.52 GWh in one
year. The percentage
is 2.4% from total energy consumption in 2010 with assumption
growth 6.75% per
year and base year is 2008.
Techniques such as the use of variable speed drives can adjust
the speed of the motor so
that the conversion in accordance with the load. Because the
motor is used constantly without
stopping, then little improvement inefficiency will be very
influential in the energy efficiency and can
bring many benefits through cost savings.
b. Refrigerant retrofit
Refrigerant retrofit can be done for split AC. This AC used in
Commercial, Social, and Public Sector.
Hydrocarbon Refrigerant has many advantages when compared with
other type of
refrigerants.
Assumptions of Refrigerant retrofit
Split AC on Commercial, Operation time AC: 8 hours/day
-
28
Social, and Public Sector
Investment Cost for AC:
IDR 280,000 / HP equipment
Generating cost: IDR 1,300 at
normal time and IDR 1,500 at peak
time (5 pm to 10 pm)
The calculation for refrigerant retrofit shows below:
Figure 4.16. NPV Difference for Refrigerant retrofit in
Commercial, Social, and Public
Sector
From figure above, it can be seen that there are savings for
refrigerant retrofit at all
three sectors that use AC’s. Its scenarios of refrigerant
retrofit are feasible because payback
period is less than 30 month.
-
29
Figure 4.17. KWh Difference for Refrigerant retrofit Commercial,
Social, and Public Sector
Total technical potential are does not significant for this
scenario. This savings are does
not quite high but worth to use as consideration to settle a
policy in energy efficiency usage
and energy conservation.
The steps that are usually applied to the retrofitting of
buildings technology upgrades and
conditioning equipment for energy saving behavior of the
occupants of the building.
c. Improvement of Unbalance Voltage
Improvement of unbalance voltage can be done in industry that
connected to the grid with three-
phase line (3ø) or use own generator in their production
process. Unbalance voltage condition is more
often caused by a variation of the loads. Perfectly balanced
condition will never be achieved for the three-
phase line, but efforts should be made to minimize.
Assumptions of Improvement of Unbalance Voltage
Investment for hiring
Consultant: IDR 25,000,000
Energy savings 15,500 kWh per
year
The calculation for improvement of unbalance voltage shows
below:
-
30
Figure 4.18. NPV Difference for Improvement of Unbalance Voltage
in Industrial Sector
From figure above, it can be seen that there are savings for
improvement of unbalance
voltage. Its scenario is feasible because payback period is less
than 24 month.
Figure 4.19. KWh Difference for Improvement of Unbalance Voltage
in Industrial Sector
This shown that large total technical potential is for
improvement of unbalance
voltage in industrial sector. This potential are common because
in the sector using
motor with large power capacity for loads. The KWh difference is
quite high hence
energy savings also high. Total energy savings are identified
around 10.5 GWh within
five years or simply 2.1 GWh in one year. The percentage is 0.6%
from total energy
consumption in 2010 with assumption growth 6.75% per year and
base year is 2008.
-
31
Barrier Analysis
Common barriers to the financing for implementation of
recommendations are high up-
front capital cost and inadequate accessibility to finance.
There are no effective supporting
investment and financing mechanisms available.
Second, there are no supporting policies or incentive mechanisms
formulated by the
legislative requirements for implementing the recommendations.
The existing policies are not
integrated, lacking power, stability and consistency.
Third, lack of knowledge of the energy users about energy
efficiency and conservation.
The critical part of any energy management program is commitment
to the saving of energy
by the manager or owner, who has not been a priority in most
organizations in Indonesia.
Policy Measures
From the perspective for all four sectors, the availability of
financing enhances
affordability and stimulates further demand which in turn leads
to further development.
Strategic policy options in source of finance can be categorized
in two main scenarios, which
are possible:
1. Increasing financing by private/public financial institutions
with improvement of
portfolio lending such as revolving funds and guarantee
funds.
2. Enhance private sector financing with two delivery
instruments: leasing and energy
service company (ESCO) performance contracts.
3. Promote trainings for managers in the respective sectors, and
create a platform through
regular seminars to exchange best practices.
Many methods of managing and conserving energy have been
discussed in many
researches. The critical part of any energy management program
is commitment to the saving
of energy by the manager or owner. These people must be
convinced that energy management
saves them money and is important for our energy resources.
Managers and owners should
always keep energy conservation in mind and develop realistic
objectives for energy use. The
key element is “awareness”.
Policy Scenario for the region
For the commercial, industrial, social, and public sector, the
three energy
efficiency measures mentioned above, implementing VSD,
refrigerant retrofit, and
improvement of unbalance voltage, the following penetration
scenarios for each
options are below:
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32
Table 4.4. Penetration Scenario for Commercial, Industrial,
Social, and Public
Sectors
Secto
rs
Tot
al
Connected
Implementing
VSD
Refrigerant
Retrofit
Improvement of
Unbalance Voltage
Pen
etration
Optimistic
Pene
tration
Minimal
Pene
tration
Optimistic
Pene
tration
Minimal
Pene
tration
Optimistic
Pene
tration
Minimal
Comm
ercial 1 1,0
30
40
%
25
%
35
%
25
%
Comm
ercial 2 38 25
%
15
%
Indus
trial 135
25
%
15
%
30
%
20
%
Socia
l 63
40
%
25
%
35
%
25
%
Publi
c 416
35
%
20
%
Implementing Variable Speed Drive (VSD)
Figure 4.20. Loan, NPV Savings, and Government Savings for
Implementing VSD in
Social Sector
From the figure above, it can be seen that there are always give
savings for sectors. The
policy that applied would give benefit by hastened the
implementation of energy efficiency
equipment. But the NPV savings for sectors would decrease a bit
because of a significant
-
33
consequence of benefit shares with third party. Again, it has to
be done within the framework
of energy efficiency and conservation. In Government Savings,
the point which compared is
the amount of subsidies to be borne by government that can be
saved, did not calculate
savings gained from raising electricity tariff as a whole.
Investments are from sectors themselves
or from third party in implementing the programs.
-
34
Improvement of Unbalance Voltage
Figure 4.21. Loan, NPV Savings, and Government Savings for
Improvement of
Unbalance Voltage in Industrial Sector
From the figure above, it can be seen that there are always give
savings for sectors. The
policy that applied would give benefit by hastened the
implementation of energy efficiency
equipment. But the NPV savings for sectors would decrease a bit
because of a significant
consequence of benefit shares with third party. Again, it has to
be done within the framework
of energy efficiency and conservation. In Government Savings,
the point which compared is
the amount of subsidies to be borne by government that can be
saved, did not calculate
savings gained from raising electricity tariff as a whole.
Investments are from sectors themselves
or from third party in implementing the programs.
-
35
CHAPTER 5. CONCLUDING ANALYSES AND DISCUSSIONS
Households
Policy mechanisms and recommendation
Support the development of internal test procedures and
measurement standards. Effective implementation of energy
efficiency policies for
appliances and equipment relies upon the use of accurate energy
performance
measurement standards and protocols. National energy efficiency
policy
objectives will be undermined by energy measurement standards
that fail to
reflect actual energy use and/or provide a true in-use
efficiency ranking of
equipment. It is encouraging to have energy performance
measurement
standards and protocols in place and is regularly updating
these. This will
assist performance comparison and benchmarking for traded
products.
Household should return older appliances (i.e. refrigerator,
television, and air conditioning) to make sure that inefficient
ones are indeed replaced and not
added to the total market.
Introduce recycling scheme, in these case, manufacturer and
stores could participate. Government involvement is very important
to promote these
schemes and stimulate the private sector.
Limiting appliances conditions, it could be 5 years or maximum 8
years that usually used in analysis, and also depend on the
manufacturer specifications.
Labeling or standardizing. Energy labeling is done by
dissemination of information to consumers that contain important
clues about the efficiency of energy utilization at the level of
sales through product labels. Labeling program will influence
the
people to use equipments for energy saving.
Manufacturer involvement. Scheme could be share subsidy because
they get benefit from labeling and also warranty for equipment 5
years as used in
analysis.
Ensure adequate resources allocated to maintaining stringency of
energy efficiency requirements for appliances.
Ensure appropriate policies are in place to encourage company to
deliver a product which is as energy efficient as possible.
Subsidies are not recommended because it is difficult to
implement without any market distortion, and can have greater
negative than positive impacts. In
addition subsidies are more likely to be at a national level
which will not take
into account the considerations in Yogyakarta.
Payback Period: higher energy costs are necessary to promote
energy efficiency
behavior.
More information can lead to improved consumer knowledge and
more reason
to choose for energy efficient technology.
Increase the electricity price in a gradual and structured
manner. This would also reduce subsidy costs and could be allocated
to another development, such
as the utilization of renewable energy technologies.
-
36
Commercial, Industrial, Social, and Public Sectors
Policy mechanisms and recommendation
The perception of high risk and high transaction costs of
equipment transactions,
combined with limited affordability by income consumers are
common barriers to commercial
banking playing a significant role in financing access to
products and services. The policy
options envisaged aim is to increase energy efficiency in the
portfolio of banks.
Establish a fund guarantee system for implementation of
recommendation, involving the government, social benefits
organizations, equipment special
capitals and development funds.
Increase government intervention that establishes new financial
institutions operating on preferential market terms; and introduce
mechanisms to reduce
the interest rate for commercial lending.
The main solutions to solving the problem of gaining the
financial capital needed for implementation are to combine state
guidance investment with
social multi-channel investment.
Revolving Funds
Revolving funds use repaid loan funds are cycled back into the
fund for relending for a
new project. Money in the revolving fund is fully dedicated to
energy efficiency lending.
Revolving funds are typically publicly supported, through
subsidized interest rates or through
partial or full public funding of the principal investment.
Moneys for the fund may come from
dedicated taxes on energy sources (e.g., fuel taxes, utility
surcharges). Operation of the fund
itself may be set up in cooperation with commercial banks. Such
an arrangement allows
evaluation of loan applications, monitoring of loans, and
collection of loan payments to be
managed by commercial banks that have existing expertise in
these areas. Government
offices, as a consequence, do not need to become bankers to
administer the fund. The public
funding involved makes loan money available for energy
efficiency projects that are currently
not available strictly through the sectors. Thus, energy
efficiency projects seeking funding
through the revolving loan fund do not need to compete against
more traditional investments
for bank funding. Finally, the public funds provided to
commercial banks are usually
provided at zero or well below market interest rates. This
enables the banks in turn to provide
loans for energy efficiency projects at rates below market. In
return for receiving public
funds, banks can be asked to assume some or all of the risk of
repayment associated with the
loans.
Guarantee Funds
Guarantee funds help cover the credit risks associated with
financing energy efficiency
projects with a medium to long term. In such schemes, public or
donor funding is pledged to
guarantee some of the risk of principal repayment for these
loans. Typically, the loan recipient
-
37
pays an annual fee (usually 1 to 3 percent of the total
outstanding balance on the loan) to the
guarantor in order to obtain a guarantee for the loan. As a
consequence, guarantee funds can
help alleviate the barriers to energy efficiency lending that
are associated with collateral
requirements, the higher risk nature of new technologies, and
the risk of longer-term lending.
Like revolving funds, guarantee funds can be helpful in building
the capacity and willingness
of banks to offer energy efficiency loans by subsidizing risks
until the banks become familiar
with the market and can manage the risks on their own.
Lease Energy-efficiency projects are frequently funded via
capital leases, a financing
structure under which an entity (“lessee”) pays for equipment
not at contract signing, but instead via scheduled installments to
the capital provider (“lessor”) over the term of the lease. One
primary appeal of leasing as a means of funding is the flexibility
leases afford in scheduling payments, which can be timed to
coincide with projected energy cost savings from an Energy
Performance Contracts (EPC).
The lessee’s obligation to make timely payments under the lease
is absolute and not dependent on realization of the EPC’s projected
energy cost savings. The energy services company (ESCO) guarantee
on energy use savings can make up shortfalls in the realization of
energy cost reductions, thereby assisting the building owner in
making the lease payments, but this settlement is made apart from
the building owner’s obligation to the lessor. If the lessee should
default on the lease payments, the lessor may remove and sell the
equipment to minimize its losses. Since ESCO shortfall payments, in
the event of dispute resolution, may not occur immediately, the
lessee is therefore advised in all lease (and loan) arrangements to
both a) incorporate a stiff penalty for non-timely ESCO shortfall
payments into the EPC contract, and b) hold sufficient funds in
reserve to ensure timely lease payments to the lender in the event
of energy cost savings shortfalls.
Lessors may require a claim not only to the equipment itself,
but also to the lessee’s
general economic resources (tax revenues, tuition revenue,
endowment, etc.) as security for
the lease. Lessors set rates and terms according to the strength
of these resources, the
availability of adequate operational cash flows, and the
lessee’s borrowing history. A lessee’s
credit rating and borrowing capacity thus play a role in
determining the interest rate for a
capital lease.
Energy Service Company (ESCO) Performance Contracts
In a case of performance contracting, the ESCO will perform an
energy efficiency audit
and develop recommendations and designs based on the audit. The
ESCO will then secure
financing for the project (upon agreement with the customer
concerning recommendations).
That financing typically will be based on the stream of energy
cost savings that are expected
as an outcome of implementing the recommended changes. The ESCO
then implements the
project. The ESCO assumes the risk of performance of its
recommendations. If the changes
do not produce savings, then the customer does not pay the ESCO.
Typically, all costs
associated with the project – beginning with the audit and
design – are bundled together, so
-
38
the customer does not incur any costs until the stream of
savings begins. The appeal of
performance contracts is that the customer incurs almost no
upfront costs for its energy
efficiency investments – all payments come out of energy
savings.
There are a number of ways that ESCO Performance Contract
projects can be
structured:
1. Guaranteed Savings:
It is the customer who actually borrows the funds and takes on
the obligation to repay the loan.
The ESCO guarantees that stream of savings from the project will
be sufficient to cover the loan payments.
The customer taking out the loan is subject to the same
evaluation as for any other loan, and the loan will appear on the
customer’s balance sheet.
2. Shared Savings:
The ESCO assumes both the performance risk and the credit risk
associated with the project.
The customer generally must pay a higher percentage of the
project’s savings to the ESCO than for a guaranteed savings
project.
If bank financing is used, the bank typically receives rights to
the stream of payments as security for the loan or takes a security
interest in any equipment
that is installed as part of the project.
The customer does not have to borrow, so the project will not
appear on the customer’s balance sheet.
3. Pay from Savings:
This type of arrangement is a subset of guaranteed savings
projects. Under this
arrangement, the payment schedule depends on the level of
savings. If savings are greater
than anticipated, repayment will be faster. If savings are lower
than expected, the contract can
be extended to allow the ESCO to recover its agreed payment. A
related arrangement is the
“first out” model, in which the ESCO receives all energy cost
savings until it has received its
agreed payment. Generally, this arrangement is lower risk for
the ESCO, since it receives its
full payment more quickly than under the traditional guaranteed
savings approach.
Establish the energy management teamwork. To be effective,
energy must be saved by
a team. An individual, in reality, cannot do this alone. This
person might be helped by a
specialist in a particular area of energy conservation, and
possibly a contractor. In a larger
organization, a team might consist of a leader who is either a
technician or a member of
management, plus a specialist in each system area.
One method of promoting energy management teamwork is a managers
and employees.
The purpose of such a team should be to observe energy use and
recognize areas where
energy could be saved. The team should recommend changes that
would help conserve energy
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39
in the area where they work. By involving several people on a
team, an awareness of energy
conservation should be apparent throughout the organization.
Several companies have tried
the team approach to energy cost and thus saved money. A good
energy management effort
requires detailed planning, organizing, and controlling. This
requires a definite commitment
from top management to the energy conservation effort.
There are several suggestions that managers and owners should
consider when
developing an energy management program.
1. Plan the program with care.
2. Hire or contract with an energy specialist to make an
analysis of energy use in the
works.
3. Delegate someone dependable to supervise the overall energy
management effort.
4. Collect and analyze data on fuel and energy cost.
5. Maintain control over the way in which energy is used in the
works (develop a
“policy” regarding energy use).
6. Hire professional consultants (if it is financially feasible)
to analyze energy use in the
works and make recommendations for modifications that will save
energy.
7. Maintain accurate records of equipment operating schedule and
other activities that
use energy.
8. Urge employees to help in the conservation effort.
Conduct periodic checks to evaluate the effectiveness of the
energy management
program and suggest ways of improvement.
-
CHAPTER 6. APPENDICES WITH ASSUMPTIONS
Table 1. Number of substation, supply units and capacity
N
o
Sub
station
Work Area
supplying
Cap
acity
(MV
A)
Pick
Load
(MV
A)
Ca
pacity
(%
)
Nu
mber of
Fee
der
1
.
Kent
ungan
Sleman, Northern
Yogyakarta, Kalasan
60 44,5 74,
16
7
60 17,2 28,
67
3
2
.
Bant
ul
Sedayu, Southern
Yogyakarta, Northern
Yogyakarta, Bantul
60 23,7 39,
50
4
60 34,6 57,
67
8
3
.
Geja
yan
Northern
Yogyakarta, Southern
Yogyakarta, Kalasan
60 25 41,
67
4
60 25 41,
67
4
4
.
Wiro
brajan
Northern
Yogyakarta, Southern
Yogyakarta, & Sedayu
60 27,5 45,
83
5
5
.
Gode
an
Sleman, & Sedayu 30 8,5 28,
33,
3
30 14,1 47,
00
3
6
.
Med
ari
Sleman 30 21 70,
00
6
-
Source: PT. PLN (Persero) APJ Yogyakarta, 2008
Table 2. Number of consumer of PT. PLN (Persero) APJ
Yogyakarta
No
.
Types of
Consumer
Number
of Consumer
(
%)
1. Social 19.684 2,
44
2.
Household 757.725 9
2,7
R1-450 VA 465.568 5
8,78
R1-900 VA 205.534 2
9,31
R1-1300 VA 53.241 7,
59
R1-2200 VA 23.170 3,
31
R2 6.373 0,
91
R3 626 0,
08
7
.
Wate
s
Wates 30 11 36,
67
3
16 6,5 40,
63
2
8
.
Sem
anu
Wonosari 30 21,3 71,
00
3
30 12,4 41,
33
2
Total 616 292,
3
47,
45
57
-
3. Business 30.562 3,
79
4. Industry 476 0,
06
5. Public 5.564 0,
69
6. Others 2.613 0,
31
Total 805.468 1
00
Source: PT. PLN (Persero) APJ Yogyakarta2010
-
Table 3. Energy Consumption in in transportation sector in
2007
N
o. Subsector
Energy Consumption in 2007 (BOE)
Premiu
m ADO Avtur Total
1
Passenger Car
(unit)
863,653.02
42,816.28
-
906,469.30
2
Motorcycle
(unit)
908,149.79
-
-
908,149.79
3 Bus (unit)
-
133,258.96
-
133,258.96
4 Truck (unit)
259,150.87
268,531.87
-
527,682.74
5
Railway
(1000 Km)
-
22,041.52
-
22,041.52
6
Aero plane
(1000 Km)
-
-
218,420.04
218,420.04
Total
2,030,953.68
466,648.63
218,420.04
2,716,022.36
Source: Energy Profile Yogyakarta Province 2007
Table 4. Energy Consumption in transportation sector in 2008
N
o. Subsector
Energy Consumption in 2008 (BOE)
Premiu
m ADO Avtur Total
1
Passenger Car
(unit)
901,623.06
46,571.71
-
948,194.77
2
Motorcycle
(unit)
964,824.86
-
-
964,824.86
3 Bus (unit)
-
139,282.08
-
139,282.08
4 Truck (unit)
-
256,766.73 277,210.41 - 533,977.15
5
Railway
(1000 Km)
-
22,112.92
-
22,112.92
6
Aero plane
(1000 Km)
-
-
233,750.40
233,750.40
Total
2,123,214.66
485,177.13
233,750.40
2,842,142.19
Source: Energy Profile Yogyakarta Province 2008
-
Figure 1. Loan, NPV Savings, and Government Savings for
Implementing VSD in Commercial Sector
-
Figure 2. Loan, NPV Savings, and Government Savings for
Refrigerant Retrofit for Commercial, Social, and Public Sectors
