DIRECTORATE GENERAL OF NEW RENEWABLE … · Kementerian Energi dan Sumber Daya Mineral Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi ©EBTKE KESDM …

Kementerian Energi dan Sumber Daya Mineral

Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi

© EBTKE KESDM - 2011

Geothermal Investment Opportunities Geothermal Investment Opportunities Geothermal Investment Opportunities Geothermal Investment Opportunities

in Indonesiain Indonesiain Indonesiain Indonesia

by:

Sugiharto Harsoprayitno, M.Sc

Director for Geothermal

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

Thursday, July 14, 2011




Geothermal Potency in Indonesia

• Potential Geothermal Indonesia is the largest in the world, 40% of

world reserves, amounting to 29.038 MW, spread over 276

locations

• Installed Capacity 1,189 MW (4% of whole potency), consists of

field: Sibayak 12 MW, Salak Mt. 375 MW, Wayang Windu 227 MW,

Kamojang 200 MW, Darajat 255 MW, Dieng 60 MW and Lahendong

60 MW

• Geothermal Road Map Target 9,500 MW in 2025




Source : Geological Survey, MEMR(2010)

GEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAPGEOTHERMAL POTENTIAL MAP

Already Developed

Ready to Developad

Detail Survey

Preliminary Survey

Note:

1 Sumatera 86 13,516 122 Java 71 10,092 1,1173 Bali 5 2964 Nusa Tenggara 22 1,4715 Kalimantan 8 1156 Sulawesi 55 2,519 607 Maluku 26 9548 Papua 3 75

1,18929,038

Install

Capacity

(MW)

Potency

(MW)

Total 276

No. IslandNumber

of Loc.




No. Geothermal Working

Area/ LocationLicense Holder Developer

Name of

Geothermal

Power Plant

Installed

Capacity

(MW)

1Sibayak – Sinabung,

SUMUT

PT. Pertamina Geothermal

Energy (PGE)


Energy (PGE)Sibayak 12

2Cibeureum – Parabakti,

JABAR


Energy (PGE)

KOB - Chevron Geothermal

Salak, Ltd (CGS)Salak 375

3 Pangalengan, JABARPT. Pertamina Geothermal

Energy (PGE)

KOB - Star Energy

Geothermal Wayang

Windu, Ltd (SEGWWL)

Wayang

Windu227

4Kamojang – Darajat,

JABAR


Energy (PGE)


Energy (PGE)Kamojang 200

5Kamojang – Darajat,

JABAR


Energy (PGE)

KOB - Chevron Geothermal

Indonesia, Ltd (CGI)Darajat 255

6Dataran Tinggi Dieng,

JATENG


Energy (PGE)PT. Geo Dipa Energi (GDE) Dieng 60

7Lahendong – Tompaso,

SULUT


Energy (PGE)


Energy (PGE)Lahendong 60

1.189

4

INSTALLED GEOTHERMAL POWER PLANT CAPACITY 2010




REGULATIONS ON GEOTHERMAL ENERGY

I. Law No. 27/2003 on Geothermal

II. Government Regulation No. 59/2007 jo Government Regulation No. 70/2010 on Geothermal Business Activities

III. Government Regulation No. 62/2008 jo No. 1/2007 on Income Tax Facilities

IV. Presidential Regulation No. 4/2010 on Assignment to PT. PLN to Accelerate Power Plant Development Using Renewable Energy, Coal and Gas

V. Ministerial Regulations� MEMR Regulation No. 11/2008 on Mechanism for Determining Geothermal Working

Area

� MEMR Regulation No. 02/2009 on The Guidelines for Geothermal Pre-Survey Assignment

� MEMR Regulation No. 05/2009 on The Guidelines for Electricity Purchasing Price by PT. PLN from Cooperation and Other Business Entities

� MEMR Regulation No. 11/2009 on The Guidelines for Geothermal Enterprises

� MEMR Regulation No. 31/2009 on Purchasing Power by PT. PLN from Power Plant using Small – Medium Scale of Renewable Energy

� MEMR Regulation No. 15/2010 on Projects List of Power Plant Accelerated Development using Renewable Energy, Coal and Gas as well as Related Transmission

� MEMR Regulation No. 2/2011 on an Assignment to PLN to buy electricity from geothermal power plant




GOVERNMENT POLICIES TO SCALE UP GEOTHERMAL DEVELOPMENT IN INDONESIA

1. Presidential Regulation No. 04/2010 jo Ministerial Regulation No. 15/2010 (2nd

Stage of 10,000 MW Crash Program) in order to speed up the development of geothermal power to the amount of 3,967 MW by the year 2014 which will require a total of US$ 12 Billions.

2. Government provide fiscal incentives for geothermal:

■ Income Tax Facilities (Based on Government Regulation No. 62/2008 jo No. 1/2007) which provide:

- 30% (thirty percent) net income tax deduction of the total Investment, for 6 (six) years, 5% (five percent) annually

- Income tax charge for dividend paid to Foreign Tax Subject shall be 10% (ten percent), or lower tariff according to effective Double Taxation

Avoidance Agreement

- Compensation of financial loss for more than 5-10 years

■ Custom Duties Exemption for Importing Items (based on MoF Decree No. 177/PMK.011/2007)

■ Value Added Tax of Import Items Covered by Government (based on MoF Decree No. 22/PMK.011/2011)




GOVERNMENT POLICIES TO SCALE UP GEOTHERMAL DEVELOPMENT IN INDONESIA

3. Government support in the form of reducing upstream geothermal risk by providing revolving funds (for exploration and FS), particularly for the Eastern parts of Indonesia.

4. The GoI is in process of establishing a State-Owned Company in the geothermal business to support its development.

5. To accelerate geothermal development, the Government offers a Preliminary Survey Assignment to third part (investor) which provides “first right refusal”.

6. The Government has determined Regulations on Geothermal Price Structure (based on MEMR Regulation No. 02/2011) :

• Purchase price of electricity by PT PLN from a Geothermal Power Plant, as the result of a GWA tender, is used for the Power Purchase Agreement, the electricity price is final and non negotiable

• Ceiling price for geothermal energy: US$ 9.7 cents/kWh

7. In order to enhance certainty in geothermal investment, the government has set a Standard Power Purchase Agreement.

Continue …...




� President Decree No 45/1991, No 49/1991, and No 23/1992

� Business structure based on JOC and ESC

� 34% of Net Operating Income (NOI), that had included all kinds of taxes and retribution, except personal tax.

� Project Management : Under Pertamina (JOC) and PLN (ESC)

� Project Type: � Total (Integrated) Project � Partial Project

� Law No. 27/2003

� Business structure in the form of Permit:� Geothermal Mining Permit � Enterprise Permit for Electricity

� Obligation to pay for taxes and royalty

� Project Management :Under Permit Holder

� Project Type:Total (Integrated) ProjectWKP holder will be granted as generally plan operation

Implementation of Geothermal PoliciesImplementation of Geothermal Policies

Existing GWA New GWA

8




� Big geothermal potential→ development in mid-big scale project

� Existing projects as brown fields → detail data is unavailable

� Conducive investment condition is enough → attractive to investor (B to B approach)

� Small geothermal potential →development in small scale project

� Most of the area are green fields → detail data is not available

� Not attractive to investor. Not only need conducive investment condition, but also funding support from government

� Government support in the form of reducing upstream geothermal risk (GoI allocates budget for exploration and FS)

9

Development of Geothermal Energy

Western Part of Indonesia Eastern Part of Indonesia




MEMR

Prov.

Gov.

Corporation

PLN

GWA/WKP

DeterminationPre-SurveyGWA/WKP

TenderingIUP

Issuance

Electricity

Price

Report of

Tendering

Process

Geotherm

al

Potential

Potential

Map

Surve

y

APBN

Survey

APBD

Prov.

Other

Parties

Assignment

Evaluati

onWKPRep. WKP-N

WKP-P

WKP-K

(S3-N)

(S3-P)

(S3-K)

IUP-N

IUP-P

IUP-K

(S4-N)

(S4-P)

(S4-K)

Tender Winner

GEOTHERMAL VALUE CHAIN

(S-1) (S-2) (S-3) (S-4) (S-5)

PPA

(S-6)

Assignment

Explorat

ion

(S-7)

(Current Regulations)

(S-0)

BUSINESS STADIUM (S-X)

Survey

APBD

Kab./

Kota

Pemda

Kab./

Kota

Units

Potential/

StadiumE

xploitat

ionFS Production/

Utilization

(S-8) (S-9) (S-10)

Tender Winner

Tender Winner

The Golden Bridge




Road Map of Geothermal Development 2006 – 2025

Current Condition

2006

852 MW

(Produksi)

2008 2012 2016 2020

2000 MW

3442 MW

4600 MW

6000 MW

9500 MW

(Target)

1148 MWExisting WKP

1442 MWExisting WKP

1158 MWExisting

WKP + New WKP

1400 MWNew WKP

3500 MWNew WKP

2025

1189 MW

(based on Presidential Decree No. 5/2006 on National Energy Policy)

Plus 2nd Phase Crash Program Scenario

5156 MW




� Presidential Regulation No. 04/2010 on Assignment to PT. PLN to Accelerate Power Plant Development Using Renewable Energy, Coal and Gas

� MEMR Regulation No. 15/2010 on Projects List of Power Plant Accelerated Development using Renewable Energy, Coal and Gas as well as Related Transmission

� Target for Geothermal Power Plant Development on Crash Program 10.000 MW Phase II

- Development for Production on Existing Field : 645 MW

- Development for not yet in production on Existing Field : 1535 MW

- New Development Geothermal Working Area : 1787 MW

Total of Geothermal Development 3967 MW

STRATEGICAL TARGET FOR GEOTHERMAL DEVELOPMENT2010 S.D 2014




Geothermal Contribution on 2nd Phase 10,000 MW Power Development Acceleration Program

(Based on Ministerial Decree No. 15/2010 on Projects List of Power Plant Accelerated Development using Renewable Energy, Coal and Gas as well as Related Transmission)

Existing GWA→→→→ 2180 MWNew GWA →→→→ 1787 MW

Java →→→→ 1970 MWOutside Java →→→→ 1997 MW

Additional Installed Capacity of

Geothermal Power Plant up to 2014 is

3,967 MW

� Total investment needed for achieving this target is about 12 Billion USD (with assumption, development cost of 1 MW = 3 Million USD)

� With developing 3,967 MW Geothermal Power Plant until 2014, could reduce emission about 24 Million ton CO2/Year (6,000 t CO2e/MW/Year)




- Development of 3,967 MW electricity from Geothermal in 10,000 MW Crash Program Stage II up to the year 2014 is required more than US$ 12,000 millions for the investment.

- Development plan of 12,000 MW Geothermal Power Plant up to the year 2025, international supports are needed.

- Foreign ownership in Geothermal Business is allowed up to 95 %;

- Business opportunities in geothermal sector:

� Geothermal direct use;

� Low temperature geothermal potential;

� Small scale power plant.

Partners and Investors are welcomed to be parts of Indonesia development as the largest geothermal producer.

INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES




DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

www.ebtke.esdm.go.id

www.energiterbarukan.net

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950

Telp/Faks : 021-5250575




NO Geothermal Power

Plant ProjectStatus Province

Estimation

of Capacity

(MW)

Installed

Capacity

2014 (MW)

Required

Financing 2014

(US$ Million)

1 Seulawah Agam New WKP Aceh 1x55 55 165

2 Jaboi New WKP Aceh 1x7 7 21

3 Sarulla 1 Existing WKP North Sumatera 3x110 330 990

4 Sarulla 2 Existing WKP North Sumatera 2x55 110 330

5 Sorik Merapi New WKP North Sumatera 1x55 55 165

6 Muaralaboh New WKP West Sumatera 2x110 220 660

7 Lumut Balai Existing WKP South Sumatera 4x55 220 660

8 Rantau Dadap New WKP South Sumatera 2x110 220 660

9 Sungai Penuh Existing WKP Jambi 2x55 110 330

10 Hululais Existing WKP Bengkulu 2x55 110 330

11 Rajabasa New WKP Lampung 2x110 220 660

12 Ulubelu 3 dan 4 Existing WKP Lampung 2x55 110 330

13 Rawa Dano New WKP Banten 1x110 110 330

14 Kamojang 5 & 6 Existing WKP West Java 1x40 & 1x60 100 300

15 Cibuni Existing WKP West Java 1x10 10 30

16 Cisolok-Cisukarame New WKP West Java 1x50 50 150

17 Darajat Existing WKP West Java 2x55 110 330

18 Karaha Bodas Existing WKP West Java 1x30 & 2x55 140 420

19 Patuha Existing WKP West Java 3x60 180 540

20 Salak Existing WKP West Java 1x40 40 120

21 Tampomas New WKP West Java 1x45 45 135

22 Tangkuban Perahu I New WKP West Java 2x55 110 330

NO Geothermal Power

Plant ProjectStatus Province

Estimation

of Capacity

(MW)

Installed

Capacity

2014 (MW)

Required

Financing 2014

(US$ Million)

23 Tangkuban Perahu II Existing WKP West Java 2x30 60 180

24 Wayang Windu Existing WKP West Java 2x120 240 720

25 Batu Raden New WKP Central Java 2x110 220 660

26 Dieng Existing WKP Central Java 1x55 & 1x60 115 345

27 Guci New WKP Central Java 1x55 55 165

28 Ungaran New WKP Central Java 1x55 55 165

29 Ijen New WKP East Java 2x55 110 330

30 Iyang Argopuro Existing WKP East Java 1x55 55 165

31 Wilis/Ngebel New WKP East Java 3x55 165 495

32 Lahendong 5 dan 6 Existing WKP North Sulawesi 2x20 40 120

33 Kotamobagu 1 dan 2 Existing WKP North Sulawesi 2x20 40 120

34 Kotamobagu 3 dan 4 Existing WKP North Sulawesi 2x20 40 120

35 Bora Open Area Central Sulawesi 1x5 5 15

36 Merana/Masaingi New WKP Central Sulawesi 2x10 20 60

37 Huu New WKP West Nusa Tenggara 2x10 20 60

38 Sembalun Open Area West Nusa Tenggara 2x10 20 60

39 Atadei New WKP East Nusa Tenggara 2x2,5 5 15

40 Sukoria New WKP East Nusa Tenggara 2x2,5 5 15

41 Tulehu Existing WKP Maluku 2x10 20 60

42 Jailolo New WKP North Maluku 2x5 10 30

43 Songa Wyaua New WKP North Maluku 1x5 5 15

3967 11.901Total Development of Geothermal Power Plant until 2014

Geothermal Power Plant Projects included in Crash Program Phase II

Note : Cost to develop 1 MW = US$ 3 Million




GWA before Law No. 27/2003

No. GWA IUP Holder Field DeveloperPotency

(MW)

Installed

(MW)1 Sibayak-Sinabung PT. PGE Sibayak PT. PGE 124 12

2Cibeureum - Parabakti (Gn.

Salak)PT. PGE Gn. Salak CGS, Ltd 952 375

3 Pengalengan PT. PGEWayang Windu

Star Energy Geothermal

Wayang Windu400 227

Patuha PT. Geo Dipa Energi 706 -

4 Kamojang-Darajat PT. PGEKamojang PT. PGE 855 200

Darajat CGI, Ltd 610 255

5 Dieng PT. PGE Dieng PT. Geo Dipa Energi 780 60

6 Lahendong-Tompaso PT. PGE Lahendong PT. PGE 358 60

7 Sibual-Buali PT. PGE Sarulla SOL 1146 -

8 Hululais - Tambang Sawah PT. PGE Hulu Lais PT. PGE 873 -

9 Lumut Balai PT. PGE Lumut Balai PT. PGE 1066 -

10 Sungaipenuh PT. PGE Sungai Penuh PT. PGE 208 -

11 Ulubelu PT. PGE Ulubelu PT. PGE 556 -

12 Karaha-Cakrabuana PT. PGE Karaha Bodas PT. PGE 725 -

13 Buyan Bratan (Bedugul) PT. PGE Bedugul Bali Energy, Ltd 276 -

14 Ulumbu PT. PLN (Persero) Ulumbu PT. PLN (Persero) 199 -

15 Tulehu PT. PLN (Persero) Tulehu PT. PLN (Persero) 100 -

16 Cibuni KJK Teknosa Cibuni KJK Teknosa 140 -

17 Iyang-Argopuro PT. PGE Iyang Argopuro PT. PGE 295 -

18 Kotamobagu PT. PGE Kotamobagu PT. PGE 410 -

19 CiaterPT. Wahana

Sembada SaktiCiater PT. Wahana Sembada Sakti 90 -

Total 10,869 1,189




NO FIELD REGENCY PROVINCE

DEVELOP

MENT

TARGETS

(MW)

STATUS OF

TENDER

PROCESS

1 Seulawah agam Aceh Besar Nangroe Aceh Darusallam 160 On Going

2 Jailolo West Halmahera North Maluku 75 Finished

3 Telaga Ngebel Ponorogo and Madiun East Java 120 Finished

4 Ungaran Mt. Semarang and Kendal Central Java 100 Finished

5 Tampomas Mt. Sumedang and Subang West Java 50 Finished

6 Cisolok Cisukarame Sukabumi West Java 45 Finished

7 Tangkuban Perahu Mt. Subang, Bandung and purwakarta West Java 100 Finished

8 Jaboi Sabang Nangroe Aceh Darusallam 50 Finished

9 Sokoria Ende East Nusa Tenggara 30 Finished

10 Talang Mt. Solok West Sumatera 36 Preparation

11 Blawan Ijen Bondowoso, Banyuwangi and Situbondo East Java 270 Finished

12 Hu'u Daha Dompu West Nusa Tenggara 65 Finished

13 Sipaholon Ria-ria Noth Tapanuli North Sumatera 75 Re-Tender

14 Bukit Kili Solok West Sumatera 83 Re-Tender

15 Sorik Marapi Roburan Mandailing Natal North Sumatera 200 Finished

16 Marana Donggala Central Sulawesi 36 Re-Tender

17 Songa Wayaua South Halmahera North Maluku 140 Preparation

18 Atadei Lembata East Nusa Tenggara 40 Finished

19 Suwawa Bone Bolanga and Gorontalo Gorontalo 110 Re-Tender

20 Kaldera Danau Banten Serang and Pandeglang Banten 115 Finished

21 Rajabasa Mt. South Lampung Lampung 91 Finished

22 Liki Pinangawan Muara Laboh, Solok Selatan West Sumatera 400 Finished

23 Suoh-Sekincau West Lampung Lampung 230 Finished

24 Rantau Dadap Muara Enim, Lahat dan Pagar Alam South Sumatera 106 Finished

25 Guci Tegal, Brebes and Pemalang Central Java 79 Finished

26 Baturaden Tegal, Brebes, Pemalang, Banyumas and PurbalinggaCentral Java 175 Finished

2981TOTAL

New GWAs Offered Through Tender Process(after Law No. 27/2003 on Geothermal)

As Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP SchemeAs Total Project Scenario, IPP Scheme As of 10 July 2011




GWA Determination Plan - 2011

NO Area ProvincePotency

(MWe)

Required Financing

(US$ Million)

1 Bonjol * West Sumatera 200 600

2 Danau Ranau * South Sumatera 210 630

3 Mataloko * East Nusa Tenggara 63 189

4 Ciremei * West Java 150 450

5 Gn. Endut * Banten 80 240

6 Sembalun West Nusa Tenggara 120 360

7 Wai Ratai Lampung 194 582

8 Simbolon Samosir North Sumatera 225 675

9 Telomoyo Central Java 92 276

4,002TOTAL

*) : determined �� April 21, 2010




No. Location Regency Province

1. Sungai Betung Kerinci and Pesisir Selatan Jambi and West Sumatera

2. Sungai Tenang Merangin Jambi

3. Ciseeng Bogor and Lebak West Java and Banten

4. Malawa Maros, Pangkajene Kepulauan, Bone and Barru

South Sulawesi

5. Gn. Dua Saudara Bitung North Sulawesi

6. Ulumbu Manggarai NTT

7. Gn. Gede/Pangrango Bogor, Sukabumi, and Cianjur West Java

Areas offered for Pre-Survey Assignment(Announcement of Director General of New Renewable Energy and Energy

Conservation No. 104Pm/30/DJE/2011)




FLOW OF GEOTHERMAL BUSINES PROSES

GWA

Winner

Buyer

Candidate

Local Government Related AgenciesPower Purchaser

(PLN)

BUSINESS

ENTITY

REGULATOR

Selling

Price*) Who has the Sender??

IUP Holder

MEMRE

Selling price

agreement*)

STEAM/

ELECTRICITY

Recommendation

In Forrest?

yes

no

no

yes

© EBTKE- KESDM 2010

Selling price approval

Note:

� In Forest Area

Forestry Permit

*) main constraint

1

2

GWA Auction

Preliminary Survey

EXPLORATION

EXPLOITATION

Forestry PermitIn Forrest?

Local gov. Permit




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DIRECTORATE GENERAL OF NEW RENEWABLE … · Kementerian Energi dan Sumber Daya Mineral Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi ©EBTKE KESDM …