Feasibility Study on Promotion of Technical Standards for Wind Power Generation utilizing EMS in Indonesia -Proposed MRV methodology

21 February 2013 Mitsubishi Research Institute, Inc., Kyudenko Corporation, BIRUMEN KAGOSHIMA CO., LTD, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

1-1 Overview of Feasibility Study Project for the JCM: Counterpart / Project Site
Counterpart: Indonesia BPPT (Assessment and Application of
Technology Badan Pengkajian Dan Penerapan Teknologi)

Project Site: Indonesia BPPT Technopark (Yogyakarta)

Yogyakarta

INDNESIA

Yogyakarta

BPPT Technopark

1-2 Overview of Feasibility Study Project for the JCM: Methodology for GHG Emissions Reduction
For reducing GHG emissions, the system as the alternative to diesel electric generation, in which highperformance small-sized wind-power generator (5kW) that BIRUMEN KAGOSHIMA CO., LTD. possesses is hybridized with solar power generation and Energy Management SystemEMS that Kyudenko Corporation possesses is incorporated, is introduced.

EMS Outline
Introduction of demand and supply control system which utilizes EMS and remote monitoring which utilizes network

2. Proposed MRV methodology (1)

Eligibility Criteria 1. Green-field renewable energy system project in remote islands (isolated grid systems) in Indonesia. (Criteria to determine technology (positive list)) 2. Must monitor net electricity supplied to mini-grid (Criteria to apply calculation method of the MRV methodology) 3. If project is implemented in multiple locations, remote monitoring system using cloud computing technology must be employed.
(Criteria to apply monitoring methodology)

2. Proposed MRV methodology (2)

Reference Scenario Electricity supplied by the project activity to the mini-grid is generated by other sources connected to the mini-grid. GHG emission reduction calculation method

RE y = EGPJ , y EFminigrid,y

REy: Reference emission (tCO2/yera) EGPJ,y: Net electricity supplied to mini-grid by the project activity (MWh/year) EFgrid,y: CO2 emission factor of mini-grid (tCO2/MWh)

EGPJ,y is monitored directly. EFminigrid,yis determined per calculation method. No project emission or leakage is considered.
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2. Proposed MRV methodology (3)

Calculation Methods: Options for grid emission factor Method 1: Default Value Option
e.g., 0.8kgCO2/kWh based on a small-scale CDM methodology (AMS I.F. Renewable electricity generation for captive use and mini-grid) or Indonesia-specific default value for island systems.

Method 2: Calculate emission factor based on the CDM tool

Simplification may be considered (i.e., only utilizing OM).
Technology Project type Emission factor Default value Green-field wind/solar power generation Multiple locations in isolated system Calculation Method Method 1

Calculate combined margin

Method 2

2. Proposed MRV methodology (4-1)

Emission Factor Consideration
Total Generation Capacity (2009-2011) excl. Low-Cost/Must-Run
Type of Power Plant Fuel type Hydro Solar Steam - Oil MFO Steam - Gas Natural Gas Steam - Coal Coal Diesel HSD Diesel IDO Diesel PPO Total Generation incl. Low-Cost/Must-Run Total Low Cost Must Run Total Generation excl. Low-Cost/Must-Run 2009 MWh 1,476,714 0 168,879,143 0 0 619,794,884 0 0 790,150,741 1,476,714 788,674,027 2010 MWh 3,034,670 2,237 8,105,360 0 0 841,099,322 0 0 852,241,588 3,036,907 849,204,681 2011 MWh 2,151,000 268,000 1,619,000 0 0 954,451,000 0 0 958,489,000 2,419,000 956,070,000

Source: PLN, etc

2. Proposed MRV methodology (4-2)

Emission Factor Consideration
Simple OM Emission Factors Calculation of West Nusa Tenggara Grid for Year 2009
Fuel Unit Total EF (tC/TJ) 21.1 20.2 20.2 25.8 15.3 Oxidation (%) 1 1 1 1 1 NCV CO2 Emission (tCO2e ) 131,471,656 451,427,570 582,899,225

MFO IDO HSD Coal Natural Gas Total

kiloliter kiloliter kiloliter ton MMBTU

41,684,316 166,792,596 -

40,767 37,219 36,542 27,444

MJ/kl MJ/kl MJ/kl MJ/ton

Simple OM Emission Factors Calculation of West Nusa Tenggara Grid for Year 2010
Fuel Unit Total EF (tC/TJ) 21.1 20.2 20.2 25.8 15.3 Oxidation (%) 1 1 1 1 1 NCV CO2 Emission (tCO2e ) 6,640,063 613,344,549 619,984,612

MFO IDO HSD Coal Natural Gas Total

kiloliter kiloliter kiloliter ton MMBTU

2,105,294 226,617,373 -

40,767 37,219 36,542 27,444

MJ/kl MJ/kl MJ/kl MJ/ton

Simple OM Emission Factors Calculation of West Nusa Tenggara Grid for Year 2011
Fuel Unit Total EF (tC/TJ) MFO IDO HSD Coal Natural Gas Total kiloliter kiloliter kiloliter ton MMBTU 469,000 255,427,000 0 0 21.1 20.2 20.2 25.8 15.3 Oxidation (%) 1 1 1 1 1 40,767 37,219 36,542 27,444 MJ/kl MJ/kl MJ/kl MJ/ton NCV CO2 Emission (tCO2e ) 1,479,218 691,318,394 0 0 692,797,612

Source: PLN, etc

2. Proposed MRV methodology (4-3)

Emission Factor Consideration West Nusa Tenggara System (incl Lombok, Sumbawa and Bima)

Total Emissions / Total Generation 2009

Total Emissions Total Generation EFOM,y tCO2e MWh tCO2e/MWh 582,899,225 788,674,027 0.739

2010
619,984,612 849,204,681 0.730

2011
692,797,612 956,070,000 0.725

EFOM2009-2011= 0.73 tCO2/MWh

2. Proposed MRV methodology (5)

Monitoring via EMS

Directly monitor the net electricity supplied to grid by the Project Remote data collection Avoid complexity of monitoring under Programme CDM Simplify verification

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3. Future prospect of business and Issues

Future prospect of business:
METI study team first focuses attention on alternatives for diesel electric generation (alternatives for oil). And then it also focuses on electrification of isolated islands. Potential for large reduction of CO2 could be realized by encouraging promotion of the system which utilizes the most efficient small-sized wind power and EMS technology. Launch of JCM business is aimed after 2015.

Issues for starting JCM business:

(1) Establishment of Mass-production System It is important for promoting this system in Indonesia and also Asian area, etc. to produce massively the prevalent type of model in which its production cost is kept down. Mass-production system will be established through the cooperation between Indonesian government, companies and METI study team. (2) Establishment of Human Resources Development a) Human Resources Development for Mass-production b) Human Resources Development for Operation & Maintenance (3) Cooperation with WhyPGen (Wind Hybrid Power Generation Marketing Development Initiatives)
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Terima kasih Contact Information

Mitsubishi Research Institute, Inc. Norio Shigetomi : norio@mri.co.jp Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. Mari Yoshitaka : yoshitaka-mari@sc.mufg.jp