Interim Report Presentation on Energy Sector Survey · 2013-11-27 · • Operated by PT. Kawasan Industri Gresik (KIG) • Total Area: about 140ha • Semen Indonesia owns 65% of

Copyright © 2013 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.

20 / November / 2013NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.Socio & Eco Strategic Consulting Sector

Interim Report Presentation on Energy Sector Survey

Copyright © 2013 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc. 2

Outline of Our Study

3Copyright © 2013 NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, Inc.

Background & Purpose of this study

In Surabaya, many advanced activities toward low carbon society have been implemented in energy sector. Installing energy efficient lighting and switching off

unnecessary lights at city government building Installing PV LED street lamps Feasibility study on CHP (Combined Heat and Power) at SIER

(Surabaya Industrial Estate Rungkut)

Although CO2 emission reduction potential of these activities have been roughly estimated, MRV methodologies for JCM have not been developed.

Although Surabaya city government has an interest in building low carbon society as advanced local government, they lack know-how needed to quantify CO2 emission, set up project based on CO2 emission quantification, and so on.

These unique activities in Surabaya have only been experimental and practical activities have not been implemented; energy saving potential and needs survey, setting up strategic model projects, business feasibility study on ESCO, and so on.

There have been no CHP business feasibility study done in other areas than SIER (including contiguous city).

This study aims to establish an environment for achieving “low carbon society as whole Surabaya city” from a perspective of JCM Localizing Japanese low carbon

technology Constructing a operating structure

We wet study policies as below;Developing MRV methodology for

activities whose CO2 reduction potential have already been quantified, with the aim of applying JCM.

Doing basic study (including ESCO business feasibility) on the activities whose basic survey (i.e. energy saving potential and needs survey) have not been done.

Doing business expansion feasibility study and evaluation of CO2 reduction potential on the activities whose business model have been developed.

【Background】【Purpose】


Current situation of energy sector in Indonesia (1/2)

Reduction of CO2 emission from electricity consumption is an important issue to be solved.

Increase in Electricity Demand

Dependent on Coal

It is estimated that electricity consumption amount will increase by an average of 8.65% from 2012 to 2021 in Indonesia.

Indonesian government prioritize using coal as power source because of its abundant potential.

In the future…

Grid emission factor will keep high value due to high ratio of coal consumption.

CO2 emission amount will grow as electricity consumption amount increases

Counter measures

Energy conservation

Low carbon energy

High efficient power

generation

Source：MEMR

Source：PLN


Current situation of energy sector in Indonesia (2/2)

Needs for energy conservation is now growing due to increase in power tariff by PLN.In the future, energy conservation activities will be implemented coupled with global warming policy.

Conventional situations

Expand of energy conservation activities among factories, building, etc.

Growing needs of managing GHG emission amount at large facilities

In the future…

Increase in Energy

conservation needs

Needs for energy conservation is now growing due to increase in power tariff by PLN this year PLN will increase their

tariff by 15% this year. Each company has to

implement energy conservation activities due to this increase in tariff.

Implem

entation of Global

warm

ing policy

Awareness of GHG emission reduction is growing through activities implemented by both national and local government. Preparation of

RAN-GRK and RAD-GRK

Lack of energy conservation activities Knowledge and understanding of the

importance and benefits is still limited. Encouragement is still weak, because energy

prices are still subsidized. Electrical equipment on the market is still

much to be inefficient. Ability to implement Energy Management and

Energy Audit is still weak. Support from Financial institutions for energy

conservation business is weak Energy Services Company (ESCO) to support

energy conservation is still limited. Standardization and labeling programs have

not been fully implemented and functional.


Our study items (1/2)A. Study on CHP installation at SIER

1. Trial calculation of CO2 emission reduction

2. Developing MRV methodology

3.Expansion feasibility study

Contents

• Trail calculation of CO2 emission reduction amount of CHP installation at SIER based on last year’s survey

• Developing JCM applicable MRV methodology based on current situation of SIER, referring to existing similar methodology.

• Quantification of CO2 reduction.

• Doing business expansion feasibility study of CHP installation at neighboring areas other than SIER.

• Examining possibility of applying JCM

Counterpart

• BAPPEKO, KLH• PT SIER• Factories in SIER• PLN , etc

• BAPPEKO, Industry Bureau, etc

• East java province• Other local

governments

Participant company


Our study items (2/2)B. Study on potential of ESCO, BEMS, dispersion type power source

1. Potential of energy saving and installation of dispersion type power source outside of industrial area

Contents

• Examining possibility of energy conservation and installation of dispersion type power source outside industrial area (i.e. data center, shopping mall, university, hospital, city government building and so on)

• Developing JCM applicable MRV methodology according to specified candidate technology

• Quantification of CO2 reduction potential

Counterpart

• BAPPEKO, Industry Bureau, etc

• Suppliers, Builders, etc

Participant company

2.Installation of LED at the highway lighting

• Examining possibility of LED installation at the high way

• Developing JCM applicable MRV methodology referring to existing similar methodology

• Quantification of CO2 reduction potential

• BAPPEKO, Public works bureau, etc

• LED supplier, etc


Relation between our study items and current CO2 emission in Surabaya

The total of industrial sector and commercial sector accounts for more than 50% of whole CO2 emission amount in Surabaya.

A. Study on CHP installation at SIER

B. Study on potential of ESCO, BEMS, dispersion type power source

出典： The World bank SUED program Report

34%

25%

20%

19%

CO2 emission amount by sector in Surabaya city （2010）


CO2 emission reduction potential

CO2 reduction potential of these activities in Surabaya is estimated at approximately 50,000 t-CO2/year in total.

CHP installation at SIER

Energy conservation in building

Installation of LED at the highway lighting

About 38,000t-CO2/year

About10,000t-CO2/year

About 630t-CO2/year

Installing natural gas fueled CHP at SIER and supplying both power(16MW) and steam(37t/h) to factories located in SIER. • Baseline：Electricity supplied from PLN, Each factory produces

steam by their natural gas-fueled boiler 112,000t-CO2/year• Project：Electricity and Steam supplied to each factory by natural

gas-fueled CHP plant 74,000t-CO2 / year

Assuming 20% energy saving achieved at each building• Shopping mall:5,040t-CO2/year• Hotel: 2,350t-CO2/year• Data center: 170t-CO2/year• Hospital: 1,790t-CO2/year

Assuming 640 LED lights are installed at the 14km highway in Surabaya which is planned to be constructed this year.• Compared with conventional mercury lamps: 630t-CO2 / year• Compared with high pressure sodium lamps: 250t-CO2 / year

ActivitiesCO2 emission reduction Conditions of Estimation


Image of our activity

• We plan to do CHP business at SIER• We found 5 potential users in SIER and specified

candidate CHP (Electricity:16MW, Steam:37t/h )

A. Study on CHP installation at SIER


Source：wikimapia, tripadvisor, etc

Tunjungan complex BAPPEKO High way


Schedule

July August September October November December January February

A. Study on CHP (Combined Hear and Power) installation at SIER



2. Developing MRV methodology

1. Suveying existing methodolgy（CDM, J-credit, etc）

2. Preparing JCM applicable methodology

3. Examining applicability of methodology at SIER

3. Expansion feasibility study

1. Listing candidate areas

2. Needs survey at candidate areas

3. Quantification of CO2 reduction potential


1. Examining possibility of energy conservation and installation of dispersion type power source outside industrial area

1. Listing candidate buildings

2. Needs survey at candidate buildings

3. Examining applicable technologies



6. Quantification of installation effect (CO2, cost, etc)

7. Examining next step （business feasibility, etc）

2.Installation of LED at the highway lighting

1. Examining possibility of LED installation at the high way



4. Quantification of installation effect (CO2, cost, etc)

Reporting

1. Report writing

Field survey ▲ ▲ ▲ ▲

Kick off Field survey Interim report Seminor


Progress （CHP）


Listing candidate area for CHP

As a result of desk survey, we found 4 industrial estates located in neighboring or inside area of Surabaya, as potential sites for CHP.

Pasuruan

Gresik

Surabaya

Pasuruan Industrial Estate Rembang(PIER)

Gresik Industrial Estate (KIG)

Margomulyo Industrial Estate*

* Not yet visited

Mojokerto Ngoro Industrial Park (NIP) *

Ngoro

Margomulyo

B. Energy Conservation

A. CHP


Pasuruan Industrial Estate Rembang (PIER)

Place

MeetingAttendees

MeetingResults

Pasuruan Industrial Estate Rembang(PIER)

Date

Next action

Outline

11:00 – 12:00, August 26th, 2013

• Operated by PT SIER• Total Area: about 500ha• Many Japanese manufactures’ factories are

located. (ex. Panasonic, Yamaha, etc)

Mr. Muhammad Suyant, Operational ManagerMr. Budi Santoso, General Manager…and one other

• PIER agreed to cooperate in NTTD’s study. • PIER provided company list to NTTD.• A large amount of steam needs is expected

at PIER because many factories expected to use steam in there manufacturing process (ex. food, chemical, carpet) are located.

• PIER can receive field survey team in next 2 month

• List potential target in PIER• Visit potential factories located in PIER and

survey power and steam demand


A. CHP


Pasuruan Industrial Estate Rembang (PIER)B. Energy Conservation

A. CHP

Finding Candidate Factory Interview survey / Data Collection Planning

Company List

Factory A

Factory B

Factory C

Factory D

・・・

List up candidates based on business category

1st round surveyOct 8 - 11

2nd round surveyDec 3 – 5(Tentative)

Visit factories not visited in 1st round survey

Steam Demand

Factory A : 20t/hFactory B : 2t/hFactory C : 2t/h

We have started interview survey and found a large amount of steam demand in PIER.Interview survey will be continued for examining a possible capacity of CHP Plant.


Gresik Industrial Estate (KIG)

Place

MeetingAttendees

Results

Gresik Industrial Estate

Date

Next action

Outline

11:00 – 12:00, August 27th, 2013

• Operated by PT. Kawasan Industri Gresik (KIG)

• Total Area: about 140ha• Semen Indonesia owns 65% of KIG, whild

Petrokimia Gresik owns 35%.

• NTTD could find some factories which seem to consume steam at their manufacturing process

• Ask operating company (PT KawasanIndustri Gresik) to cooperate in NTTD’s study and interview to each factory which consumes steam.


A. CHP

(Guided by 2 persons from Semen Indonesia)

Souce: KIG website

Further survey will be conducted as a next step


Progress （Energy Savings）


Listing candidate buildings for energy conservation

As for building energy conservation, we have selected 8 buildings / offices for our case study so far.

Shopping mall

Hotel

Municipal office

Tunjungan Plaza

Sheraton hotel & towers

BAPPEKO


A. CHP

Office Building Graha Pena (Jawa Pos)

Hotel Bumi Surabaya

Mayor office

Data center Omadata Indonesia D Net

Today’s presentation

• Field survey has been completed and as a result, we cannot find any recommended measures at present, considering economics and CO2 reduction.

• Little rooms for improvement because facilities are rather new and small.• The number of public data centers is very few in Surabaya , compared with Jakarta.


Survey Process

Our survey has been conducted in line with below steps.B. Energy Conservation

A. CHP

Walkthrough Survey / Data Collection

Proposal&

Discussion

Walkthrough Survey Data Collection

• Outline of the building Total floor space (m2), number of

stories, building use、main facilities, etc）

“Site inquiry sheet” was prepared for this survey.

• Documents about current system diagram, plan view, facility drawings, and specification of installed facilities

• Current facility ledger

• Energy consumption datain the past 4 ~ 5 years

• Checking current situation of energy consuming facilitiesGenerator Air conditioning system (AHU,

Chiller, Pump, Cooling tower, etc) Lighting system BAS (Building Automation System) Electricity receiving point, etc


BAPPEKO -First meeting

Place

MeetingAttendees

MeetingResults

BAPPEKO

Date

Next action

Outline

14:00 – 15:00, August 26th, 2013

• 3 stories building used for governmental office

• Some energy conservation activities have been already implemented.

Mr. Iman KristianMs. Esty Nayadiah

• BAPPEKO has strong interest in deploying green building and will start “Green Building Awareness Award” this year.

• BAPPEKO agreed to cooperate in our study and received inquiry sheet.

• NTTD introduced Japanese advanced cases and agreed to provide related materials to BAPPEKO

• BAPPEKO asked to meet with Dr. Maria at ITS, who works for green building.

• Submit inquiry sheet* and other related materials to NTTD team (BAPPEKO)

• Energy diagnosis conducted by NTT Facilities based on field survey and inquiry sheet filled by BAPPEKO.


A. CHP

Souce: wikimapia* Please refer to the attached


BAPPEKO/Mayor OfficeB. Energy Conservation

A. CHP

We have conducted walkthrough survey at BAPPEKO and Mayor office.Proposals are now in preparation, in which we will focus on green building awareness.

Walkthrough Survey / Data Collection Proposal & Discussion

Walkthrough Survey : 9:00 -12:00, Sep 26

(Findings)• Old and non-

inverter type A/C• Using compact

fluorescent lamp• Consciousness

for energy saving and green building

(Now in preparation…)• Replace existing A/C

with high efficient type A/C

• Replace existing lighting system with LED

• Other countermeasures regarding green building

• Passive design• Insulated window• Ceiling fan, etc

※Unlike other cases, cost performance is not considered.

※ Due to the situation in Bappeko, energy data have not been fully provided


Sheraton hotel & towers -First meeting

Place

MeetingAttendees

MeetingResults

Sheraton hotel & towers

Date

Next action

Outline

9:00 – 10:00, August 27th, 2013

• 5 star hotel located in Tunjungan complex.• 28 stories building built in 1995• 348 guest rooms

Director, Mr. Noviadi SuryadarmaChief engineer, Mr. Ida Bagus Anom

• Sheraton agreed to cooperate in NTTD’s study and received inquiry sheet.

• Sheraton has reduction target of 30% for energy consumption and 20% for water consumption by 2020.

• Energy audit had been conducted by auditor from Hong Kong.

• Some of the lightings were changed into CFLs or LED for energy conservation.

• Electricity and heat are supplied from Tunjungan Plaza.

• Submit inquiry sheet and other related materials to NTTD team (Sheraton)

• Energy diagnosis conducted by NTT Facilities based on field survey and inquiry sheet filled by Sheraton.


A. CHP

Souce: Tripadvisor, JTB website


Sheraton hotel & towers -Survey Process

Having completed field survey, we are now preparing a proposal.



(Findings)• Heat and cooling air supplied from Tunjungan Plaza• Manually record energy consumption data• Using non efficient type lamps• Using old type laundry machine• Needs for reducing water consumption amount

1st Proposal meeting14:00-15:00, Oct 29

Revised proposal will be prepared, which includes laundry machine, BEMS, LED, water saving type shower and toilet

Data CollectionQuestionnaire Other related data

Proposed items• Replace existing

laundry machine with efficient type

• Install BEMS (Building Energy Management System)

• Replace existing lighting system with LED

2nd Proposal meetingNot decided

Proposal is now being revised based on comments from Sheraton,


A. CHP


Proposal to Sheraton (1/2)

1. Replacement of Laundry Machine

Existing Equipment : Using old equipments, both electricity consumption and water consumption can be reduced by installing new equipments.

→ We ask them to provide specification of each equipment. After receiving specification data, we will propose a plan in detail

→ Sheraton hotel will increase capacity of laundry service because of expansion plan at Tunjugan Plaza, in which new hotel will be opened. Sheraton will aggregate laundry service.

→ Similar needs may exist in many hotels because each hotel usually provide laundry service by themselves (not outsourcing)


A. CHP


Proposal to Sheraton (2/2)

2. Installation of BEMS Existing Equipment : They install

BAS (Building Automation System) which has limited functions. Installing BEMS by adding some functions, energy consumption may be reduced by 5%.→ Sheraton asked us to provide

detailed information about how BEMS can reduce energy consumption.(now in preparation)

3. Installation of LED Sheraton asked us to propose LED

installation with profit sharing scheme.→ Some manufactures including

Philips and Panasonic made a proposal of installing LED.

→ Sheraton would like not only to install LED but also to decrease initial cost with profit sharing scheme.

→ Based on the request above, we are now revising our proposal.


A. CHP


Hotel Bumi Surabaya -First meeting

Place

MeetingAttendees

MeetingResults

Hotel Bumi Surabaya

Date

Next action

Outline

16:00 – 18:00, September 26th, 2013

• One of the largest hotel in Surabaya• Former Hyatt Regency• 3 buildings (6F, 26F, 10F) are supplied with

1 energy system.

• Bumi Surabaya has an interest in NTTD’s proposal.

• Bumi Surabaya basically agreed with cooperating in NTTD’s study, and accepted walk through survey by NTTD.

• NTTD asked Bumi Surabaya to provide related energy data and has already completed walk through survey.

• NTTD will prepare a proposal to BumiSurabaya.

• Preparing a proposal based on walk through survey. So far, replacement of Chiller and introduction of Co-generation plant would be solutions.

Souce: Bumi Surabaya HP

Mr. Suprapto, Director of EngineeringMr. Tumpak Saragih, Resident Manager


A. CHP


Hotel Bumi Surabaya -Survey Process


Walkthrough Survey : 14:30 -17:00, Oct 28

(Findings)• Using old chiller system (power consumption of cooling

system accounts for more than 50% of the total.)• Having their own boiler and using heat for laundry and hot

water • Generators do not have enough capacity



-

10,000

20,000

30,000

40,000

50,000

60,000

M3

gas consumption

2012

2013-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1 2 3 4 5 6 7 8 9 10 11 12

Kw

h

month

Electricity

2012

2013

-2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000 20,000

2012

2013

(Now in preparation…)• Install co-generation system• Replace existing chillers with high

efficient type


A. CHP


Pakuwon Jati (Owner of the Tunjungan Plaza) -First meeting

Place

MeetingAttendees

MeetingResults

Pakuwon Jati (Tunjungan Plaza)

Date

Next action

Outline

15:30 – 16:30, August 28th, 2013

• One of the largest shopping mall in Surabaya (253,187 m2 gross floor area)

• Pakuwon Jati is the owner of this mall • More than 550 retail stores

Chief mechanical, Mr. KasipanMr. Eko Supriyanto

• Pakuwon agreed to the basic concept of our study and asked NTTD to send the request letter for cooperation.

• NTTD asked to share the result of energy audit conducted in 2010 and 2011.

• Tunjungan plaza has installed many Japanese facilities according to the advice from Japanese engineer

• Tunjungan plaza has implemented some energy conservation activities like changing exiting lightings into energy efficient type

• Pakuwon has an interest in model project under JCM.

• Meeting with management staff at Pakuwonwill be held on 20th Sep, where they make a decision to cooperate in our study.


A. CHP

Souce: Pakuwon Jati, Tunjungan Plaza website


Pakuwon Jati (Owner of the Tunjungan Plaza) –Survey ProcessB. Energy Conservation

A. CHP

Having completed field survey, we are now preparing a proposal.Walkthrough Survey / Data Collection Proposal & Discussion


(Findings)• Energy consumption of cooling system is the most important

issue for them because its power consumption accounts for more than 40% of the total.

• Using old chiller and pumps• Not effective cooling tower• Using old type BAS• New boiler installation plan based on TJ plaza expansion

1st Proposal meeting14:00-15:00, Oct 29

Revised proposal will be prepared, which includes chiller, pump, and cooling tower.


Proposed items• Replace existing

chillers with high efficient type

• Install BEMS (Building Energy Management System)

2nd Proposal meetingNot decided

Proposal is now being revised based on comments from Pakuwon


Proposal to Pakuwon Jati 【Tentative/Example】

Existing equipment- 600 RT x 1 set, 1,000 RT x 4 setProposed works•Replace target chiller: 1,000RT x 4 -> 1,200RT x 3 (High efficient type)•Chilled water pump is renewed sequentially equipment high efficiency type.Saving calculation•Power consumption: (695 kw x 2 + 692 kW x 2)=2,774 kW•Load factor: 0.8•Annual operation time: 12 h x 365 days = 4,380 h•Total power consumption: 9,720,096 kWh/year•Percent of saving: 20 %•Reduction of power consumption: 1,944,019 kWh/year•Estimated cost to implement•Reduction of operational cost benefits: 1,944,019 kWh x 1,000 Rp./kWh = 1,944,019,000 Rp.•Initial investment: 2,000,000,000 Rp .x 3 set = 6,000,000,000 Rp.Simple payback- 3.1 years

Showing an interest in replacing cooling system, we will make a proposal in detail, including not only chillers but also pumps and cooling towers.


A. CHP


Graha Pena Jawa Pos -First meeting

Place

MeetingAttendees

MeetingResults

Graha Pena Jawa Pos

Date

Next action

Outline

10:00 – 12:00, September 27th, 2013

• One of the largest office buildings in Surabaya (21 floor building)

• Headquarters office of Jawa pos is located in this building

• Graha Pena has an interest in NTTD’s proposal.

• Graha Pena basically agreed with cooperating in NTTD’s study, and accepted walk through survey by NTTD.

• NTTD asked Graha Pena to provide related energy data and has already completed walk through survey.

• NTTD will prepare a proposal to BumiSurabaya.

• Preparing a proposal based on walk through survey. So far, replacement of Chiller, introduction LED, installation of BEMS would be solutions.

• Mr. Aminarto, General Manager


A. CHP


Graha Pena Jawa Pos –Survey ProcessB. Energy Conservation

A. CHP


Walkthrough Survey : 10:00 -12:00, Oct 28

(Findings)• Using old cooling system (power consumption of cooling

system accounts for more than 50% of the total.)• Not installing any BAS• Not installing energy efficient type lighting system



(Now in preparation…)• Install LED lightings• Install BEMS• Replace existing chillers with high

efficient type


Nest StepB. Energy Conservation

A. CHP

Prepare detailed proposal at each site including : Specific Equipment Economic Evaluation CO2 reduction

Develop applicable MRV methodology

Negotiation with each site towards JCM program implementation next year

