Download pdf - DIRECTORATE GENERAL OF NEW RENEWABLE …energy-indonesia.com/03dge/FEALAC JAPAN, Presentation.pdf · Direktorat Jenderal EBTKE Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi

GEOTHERMAL POWER PLANT DEVELOPMENT IN INDONESIA

Presented at:

“Forum for East Asia-Latin America Cooperation”

November 13th, 2012

Tokyo, Japan

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

by:

Jarman Directorate General of New, Renewable Energy and Energy Conservation

Direktorat Jenderal

EBTKE Ministry of Energy and Mineral Resources

Directorate General of New Renewable Energy and Energy Conservation

I. Background

II. Geothermal Policy

III. Geothermal Program

IV. Geothermal Development

V. Investment Opportunities

OUTLINE

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I. Background

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BACKGROUND

Geothermal is a thermal energy that naturally formed beneath the earth's surface;

Geothermal energy is a green energy because it produces lower green house gasses (GHG) than fossil fuel. In addition, when managed properly, geothermal is also consider as a renewable energy;

Geothermal energy is site specific, can not be stored, and also can not be transported;

Implementation of geothermal activity in line with the mandate of the Law 1945;

Geothermal utilization are in forms of direct and indirect use;

Authority for geothermal management distributed to Minister, The Governor, and/or Regent/Mayor in accordance with their authority.

Constraints and Barriers:

Pricing Electricity price from geothermal energy still considers has not reached its economical value;

Land-use Issues Geological Agency has been identified that more than 70% of geothermal areas are partially or completely overlapping with forestry areas (conservation forest, protected forest and production forest)

Direktorat Jenderal

EBTKE Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi Energi

Kementerian Energi dan Sumber Daya Mineral

2011

Oil 20 %

Gas 30 %

Coal 33 %

NRE 17 %

Oil 23,7 %

Gas 19,7 %

Coal 30,7 %

NRE 25,9 %

Gov. Reg.

NO. 5/2006

NEP Draft

By NEC

Note:

NRE = New and Renewable Energy

NEP = National Energy Policy

NEC = National Energy Council

Oil 49,7 %

Gas 20,1 %

Coal 24,5 %

NRE 5,7 %

2025

CURRENT ENERGY CONDITION

BACKGROUND

1. Electrification ratio in 2011 is 72,95%;

2. Energy consumption growth is 7% per year,

which not balance with energy suppy;

3. The dependence on fossil energy is high,

but the energy reserve is limited;

4. Fossil subsidy is increasing;

5. The utilization of renewable energy and

implementation of energy conservation

has not been optimized;

6. Link with environmental issue:

a. Climate change mitigation;

b. Clean energy initiative:

National commitment to reduce emission

by 26% in 2020;

7. Funding for energy development is limited

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Source : Geological Survey, MEMR(2011)

Already Developed

Ready to Developad

Detail Survey

Preliminary Survey

Note:

RESOURCES (MWe)

% RESERVE (MWe)

%

Speculative Hypothetical

45.17%

Possible Probable Proven

54.83% 8.231 4.964 12.909 823 2.288

13.195 16.020

29.215

GEOTHERMAL POTENTIAL

BACKGROUND

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II. Geothermal Policy

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Policy Directions:

• The paradigm of national energy management is shifting from Supply Side Management to demand side management Management;

• Supply Side Management on fossil focused energy sources;

• Demand Side Management focused on optimizing energy efficiency and new renewable energy sources;

• The Law No. 30/2007 on Electricity, emphasis on diversification and energy conservation.

Opportunities:

• Environmental issues and sustainable development;

• A paradigmatic shifting in the management of the national energy;

• Indonesia has huge of renewable energy potential;

• High potential for energy savings.

GEOTHERMAL POLICY

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9

GEOTHERMAL POLICY

1. Revision of Law 27/2003 on Geothermal:

GoI is revising the law 27/2003 on Geothermal, law 5/1990 on Conservation of Natural Resources, and law 41/1999 on Forestry.

2. MoU Between MEMR – Minister of Forestry

MEMR and Minister of Forestry have signed MoU regarding the acceleration of geothermal utilization permit within production forest, protected forest, and conservation forest .

3. Feed-in Tariff:

Feed-in Tariff is a Government policy to set the price of electricity from geothermal power plant which is final and can not be negotiated by PT. PLN

4. Funding incentives : • Government guarantee on the feasibility of PT. PLN; • “Geothermal Fund" for geothermal exploration; • Green Banking Program.

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III.Geothermal Program

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Development 2010 2011 2012 2013 2014 2015

Geothermal Development

1. Added Capacity (MW) 37 115 3 375 1.797

2. Installed Capacity (MW) 1.189 1.226 1.341 1.344 1.719 3.516

GEOTHERMAL PROGRAM POWER PLANT DEVELOPMENT 2010 – 2015

Note:

- Capacity Factor of Geothermal Power Plant = 90%

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No Geothermal Working Area (GWA) Location Potential Capacity

(MW)

1 Gn. Talang West Sumatera 36

2 Songa Wayaua North Maluku 140

3 Danau Ranau Lampung & South

Sumatera 210

4 Mataloko East Nusa Tenggara 63

5 Gn. Endut Banten 80

6 Way Ratai Lampung 105

7 Candi Umbul Telomoyo Central Java 72

8 Simbolon Samosir North Sumatera 155

9 Bora Pulu Central Sulawesi 123

10 Gn. Lawu Central Java 195

GEOTHERMAL WORKING AREA FOR TENDER

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PRELIMINARY SURVEY ASSIGNMENT’S AREA 2012

No Geothermal Working Area (GWA) District/ City Province

1 Gn. Hamiding West Halmahera, North Halmahera North Maluku

2 Pentadio Gorontalo, Bone Bolango, Gorontalo

City' Gorontalo

3 Graho Nyabu Merangin, Kerinci, Muko-Muko Jambi and Bengkulu

4 Gn. Wilis Ponorogo, Madiun, Nganjuk, Kediri,

Tulungagung, Trenggalek East Java

5 Gn. Geureudong Central Aceh, Bener Meriah, North

Aceh Nanggroe Aceh Darussalam

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IV.Geothermal Development

©2012

Ministry of Energy and Mineral Resources


15

ACEH 2 WKP

Jaboi: 70 MW

Seulawah Agam: 130 MW

NORTH SUMATERA 5 WKP

Sibayak – Sinabung: 130 MW

Sibual – Buali: 750 MW

Sipaholon Ria-ria: 75 MW

Sorik Marapi: 200 MW

Simbolon Samosir : 155 MW

JAMBI 1 WKP

Sungai Penuh: 70 MW

SOUTH SUMATERA 3 WKP

Lumut Balai: 250 MW

Rantau Dedap: 106 MW

Danau Ranau: 210 MW

BANTEN 2 WKP

Kaldera Danau Banten: 115 MW

G. Endut: 80 MW

WEST SUMATERA 4 WKP

Bukit Kili: 83 MW

Gn Talang: 35 MW

Liki Pinangawan: 400 MW

Bonjol: 200 MW

BENGKULU 2 WKP

Tmbg Sawah-Hululais: 873 MW

Kepahiang: 180 MW

LAMPUNG 4 WKP

Gn.Rajabasa: 91 MW

Suoh Sekincau: 230 MW

Waypanas – Ulubelu: 556 MW

Danau Ranau: 210 MW

Way Ratai :105 MW

WEST JAVA 10 WKP

Ciater - Tgkban Perahu: 60 MW

Cibeureum–Parabakti: 485 MW

Cibuni: 140 MW

Cisolok Cisukarame: 45 MW

Gn. Tampomas: 50 MW

Gn. Tgkuban Perahu: 100 MW

Kamojang-Darajat: 1465 MW

Karaha Cakrabuana: 725 MW

Pangalengan: 1106 MW

G. Ciremai: 150 MW

CENTRAL JAVA 5 WKP

Baturaden: 175 MW

Dataran Tinggi Dieng: 780 MW

Guci: 79 MW

Gn. Ungaran: 100 MW

Umbul Telomoyo : 120 MW

EAST JAVA 3 WKP

Blawan – Ijen: 270 MW

Gn. Iyang Argopuro: 295 MW

Telaga Ngebel: 120 MW

Gn. Lawu: 195 MW

BALI 1 WKP

Tabanan: 276 MW

WEST NUSA

TENGGARA 2 WKP

Hu'u Daha: 65 MW

Sembalun: 100 MW

EAST NUSA TENGGARA 5 WKP

Atadei: 40 MW

Sokoria: 30 MW

Ulumbu: 199 MW

Mataloko: 63 MW

Oka Ile Ange: 40 MW

MALUKU 1 WKP

Tulehu: 100 MW

NORTH MALUKU 2 WKP

Jailolo: 75 MW

Songa Wayaua: 140 MW

NORTH SULAWESI 2 WKP

Kotamobagu: 410 MW

Lahendong-Tompaso: 358 MW

GORONTALO 1 WKP

Suwawa: 110 MW

CENTRAL SULAWESI 2 WKP

Marana: 35 MW

Bora Pulu : 152 MW

Total : 58 GWA

Distribution of GWA

GEOTHERMAL DEVELOPMENT

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

MEMR Regulation No. 01/2012 as revised in Ministerial 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

Existing field (on Production Phase) : 465 MW

Existing field (not on Production Phase) : 1535 MW

New Geothermal Working Area : 2925 MW

Total of Geothermal Development 4925 MW

GEOTHERMAL DEVELOPMENT TARGET

(2010 - 2014)

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V. Investment Opportunities

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The development of 4,925 MW electricity from Geothermal in Second Phase Crash Program 10,000 MW up to the year 2014 requires more than US$ 14,000 millions for the investment.

The 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 %;

Access to Potential Geothermal Resources for Investors: - Preliminary Survey Assignment - Participate in the geothermal business through GWAs tendering mechanism

Other business opportunities in geothermal sector: Geothermal direct use;

Low temperature geothermal potential;

Small scale power plant;

CER under CDM Scheme;

Services company to support the core business of geothermal.

INVESTMENT OPPORTUNITIES

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Go Green Indonesia ! green energy, future energy

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Telp: 021-52904235; 5250575; Faks: 021-25529106; 25529212

Email: [email protected] ; [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION

Thank You

www.ebtke.esdm.go.id

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No. Geothermal Working

Area/ Location License Holder Developer Power Plant

Installed

Capacity

(MW)

1 Sibayak – Sinabung,

NORTH SUMATERA

PT. Pertamina Geothermal

Energy (PGE)


Energy (PGE) Sibayak 12

2 Cibeureum – Parabakti,

WEST JAVA


Energy (PGE)

KOB - Chevron Geothermal

Salak, Ltd (CGS) Salak 377

3 Pangalengan,

WEST JAVA


Energy (PGE)

KOB - Star Energy

Geothermal Wayang

Windu, Ltd (SEGWWL)

Wayang

Windu 227

4 Kamojang – Darajat,

WEST JAVA


Energy (PGE)


Energy (PGE) Kamojang 200

5 Kamojang – Darajat,

WEST JAVA


Energy (PGE)

KOB - Chevron Geothermal

Indonesia, Ltd (CGI) Darajat 270

6 Dataran Tinggi Dieng,

CENTRAL JAVA


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

7 Lahendong – Tompaso,

NORTH SULAWESI


Energy (PGE)


Energy (PGE) Lahendong 80

8 Ulubelu,

LAMPUNG


Energy (PGE)


Energy (PGE) Ulubelu 55

1.281 20

INSTALLED GEOTHERMAL POWER PLANT CAPACITY 2012

©2012



MEMR

Prov.

Govmt.

Corporation

PLN

WKP

Determination Pre-Survey WKP

Tendering

IUP

Issuance

Electricity

Price

Rep

ort o

f

Ten

derin

g

Pro

cess

Geo

therm

al

Po

tential

Potential

Map Survey

APBN

Survey

APBD

Prov.

Other

Parties

Assignment

Evaluation WKP Report 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

Exp

loratio

n

(S-7)

Exp

lora

tio

n

(Current Regulations)

(S-0)

BUSINESS STADIUM (S-X)

Survey

APBD

Kab./

Kota

Local

Govmt.

(Regent/

City)

© DJEBTKE – KESDM 2012

Units

Potential/

Stadium Exp

loitatio

n

FS Production/

Utilization

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

FS

Exp

loit

atio

n

Pro

du

ctio

n/

Uti

lizat

ion

Tender Winner

Tender Winner

Report

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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 MW

Existing WKP

1442 MW

Existing WKP

1158 MW

Existing WKP

+ New WKP

1400 MW

New WKP

3500 MW

New WKP

2025

1.281 MW

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

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GEOTHERMAL POWER PLANT PROJECTS INCLUDED IN CRASH PROGRAM PHASE II (Based on MEMR Regulaton No. 01/2012)

NO.GEOTHERMAL POWER

PLANT PROJECTSTATUS PROVINCE

ESTIMATION

OF CAPACITY

(MW)

1 Sungai Penuh Existing WKP Jambi 2x55

2 Hululais Existing WKP Bengkulu 2x55

3 Kotamobagu 1 and 2 Existing WKP North Sulawesi 2x20

4 Kotamobagu 3 and 4 Existing WKP North Sulawesi 2x20

5 Sembalun Open Area West Nusa Tenggara 2x10

6 Tulehu Existing WKP Maluku 2x10

7 Tangkuban Perahu I New WKP West Java 2x55

8 Kamojang 5 and 6 Existing WKP West Java 1 x30 1 x60

9 Ijen New WKP East Java 2x55

10 Iyang Argopuro Existing WKP East Java 1 x55

11 Ngebel New WKP East Java 3x55

12 Gunung Endut New WKP Banten 1 x55

13 Rawa Dano New WKP Banten 1 x 110

14 Cibuni Existing WKP West Java 1 x 10

15 Cisolok-Cisukarame New WKP West Java 1 x50

16 Karaha Bodas Existing WKP West Java 1 x30 2x55

17 Patuha Existing WKP West Java 3x60

18 Tampomas New WKP West Java 1 x45

19 Tangkuban Perahu II Existing WKP West Java 2x30

20 Wayang Windu Unit 3 and 4 Existing WKP West Java 2x 110

21 Gunung Ciremai New WKP West Java 2 x 55

22 Baturaden New WKP Central Java 2x 110

23 Dieng Existing WKP Central Java 1 x55 1 x60

24 Guci New WKP Central Java 1 x55

25 Ungaran New WKP Central Java 1 x55

26 Seulawah Agam New WKP Aceh 1X55

NO.GEOTHERMAL POWER

PLANT PROJECTSTATUS PROVINCE

ESTIMATION

OF CAPACITY

(MW)

27 Jaboi New WKP Aceh 2x5

28 Sarulla 1 Existing WKP North Sumatera 3x 110

29 Sarulla 2 Existing WKP North Sumatera 2x55

30 Umbul Telumoyo New WKP Central Java 1 x55

31 Simbolon Samosir Open Area North Sumatera 2x55

32 Sipoholon Ria-Ria New WKP North Sumatera 1 x55

33 Sorik Marapi New WKP North Sumatera 240 (Total)

34 Muaralaboh New WKP West Sumatera 2x 110

35 Bonjol New WKP West Sumatera 3x55

36 Lumut Balai Existing WKP South Sumatera 4x55

37 Rantau Dadap New WKP South Sumatera 2x110

38 Rajabasa New WKP Lampung 2x110

39 Ulubelu 3 and 4 Existing WKP Lampung 2x55

40 Suoh Sekincau New WKP Lampung 4x55

41 Wai Ratai Open Area Lampung 1 x55

42 Danau Ranau New WKP Lampung 2x55

43 Lahendong 5 dan 6 Existing WKP North Sulawesi 2x20

44 Bora Open Area Central Sulawesi 1 x5

45 Marana/Masaingi New WKP Central Sulawesi 2x10

46 Hu'u New WKP West Nusa Tenggara 2x10

47 Atadei New WKP East Nusa Tenggara 2 x2,5

48 Sokoria New WKP East Nusa Tenggara 3x5

49 Mataloko New WKP East Nusa Tenggara 1 x5

50 Jailolo New WKP North Maluku 2x5

51 Songa Wayaua New WKP North Maluku 1 x5

TOTAL PLANNED INSTALLED CAPACITY 4925

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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) Project GWA holder will be granted as generally plan

operation

Implementation of Geothermal Policies

Existing GWA New GWA

24

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1. Law No. 27/2003 on Geothermal

2. Government Regulation (GR) No. 59/2007 on Geothermal Business Activities, as amanded in GR No. 70/2010

3. GR No. 62/2008 jo. GR No. 1/2007 on Income Tax Facilities for Investment in Certain Business Areas and / or in Specific Regions

4. GR No. 9/2012 on Types And Tariffs On Non-tax State Revenue Applicable to The Ministry Of Energy And Mineral Resources

5. Presidential Regulation No. 04/2010 on Assignment to PT. PLN (Persero) to Accelerate The Development of Power Plant from Renewable Energy, Coal and Gas

6. Ministry Regulation (MR) of Minister Energy And Mineral Resources

1) MR No. 11/2008 on the Procedure for Determination Geothermal Working Area

2) MR No. 02/2009 on Guidelines for Geothermal Preliminary Survey Assignment (as amendment of MR. 05/2007)

3) MR No. 11/2009 on Guidelines for Implementation of Geothermal Business , jo. MR No. 18/2012

GEOTHERMAL REGULATION

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4) MR No. 01/2012 on Revision of MR No. 15/2010 on The List of Power Plant Acceleration Projects Using Renewable Energy, Coal, and Gas and Related Transmission

5) MR No. 22/2012 on Assignment to PT PLN (Persero) to Purchase Electricity from Geothermal Power Plant and Geothermal Power Purchase Benchmark Price by PT PLN (Persero)

7. Ministry Regulation of Minister of Finance

1) No. 139/PMK.011/2011 on Procedures for Granting Business-Feasibility Guarantee to PT PLN (Persero) for The Development or Renewable Energy, Coal and Gas-Fueled Power Plants Through Cooperation With The Independent Power Producers

2) No. 03/PMK.011/2012 on Procedures for the Management and Accountability Geothermal Facility Fund

..Continue

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No Area

Price (cent US$/kWh)

High Voltage

Medium Voltage

1 Sumatera 10 11,5

2 Java, Madura and Bali 11 12,5

3 South Sulawesi, West Sulawesi, and

Southeast Sulawesi

12 13,5

4 North Sulawesi, Central Sulawesi, and

Gorontalo

13 14,5

5 West Nusa Tenggara, and East Nusa

Tenggara

15 16,5

6 Maluku and Papua 17 18,5

GEOTHERMAL FEED-IN TARIFF

©2012



The Feed-in Tariffs mechanism will be applied to :

a. geothermal license holders (IUP holder) after the issuance of Minister Regulation No. 22/2012;

b. mining right holders, license holder or concession holder that existed before the enactment of Law No. 27 Year 2003 on Geothermal who already have Power Purchase Agreement (PPA), which will increase power plant capacity on the existing agreement (PPA);

c. mining right holders, license holder or concession holder that existed before the enactment of Law No. 27 Year 2003 on Geothermal who will extend their expired PPA;

d. mining right holders, license holder or concession holder that existed before the enactment of Law No. 27 Year 2003 on Geothermal who already have PPA, for both who have produced or not yet produced electricity or steam, as long as all parties involved agree upon the amendment on sales price of electricity or steam; or

e. IUP holder who will undertake PPA, as long as agreed by the parties involved and allowed by PPA to be agreed by the parties.

Feed in Tariff Mechanism