WIND INDUSTRY FORUM 2015

DEVELOPERS EXPERIENCE
Presentation by Brian Caffyn
Chairman UPC Renewables Group

17 November 2014

List of Content

1. Introduction of UPC and Partners

2. UPC Projects in Indonesia
3. Samas 50MW Wind Farm Project
4. Sidrap 70MW Wind Farm Project

UPC Renewables is a Global Wind and Solar Development Pioneer

A wind and solar energy pioneer operating for almost 20 years
UPC formed companies have built or have in construction more
than 50 wind and solar projects representing over 2,500MW in
North America (USA and Canada), Europe (Italy) and Asia (China
and the Philippines).
UPC companies have over 3,000MW in active development in
five countries (China, Philippines, Indonesia, Morocco and
Tunisia)
Raised over $4 billion in the last 20 years for wind and solar
projects.
UPC was first on the ground in building large scale wind in Italy
and USA states of Maine, Hawaii, Utah and Vermont and plans
to be first in Indonesia and has been an early enter in the other
markets we participate in.
FirstWind (formerly named UPC Wind and minority owned by
UPC) sold to SunEdison for $2.4 billion in Jan 2015.
81MW wind project in Northern Luzon, Philippines on
November 2014
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Our Local Partner

The Binatek Team has been at the forefront of
Renewable Energy Production in Indonesia for
Over a Decade as an original founding member of
the Indonesian Wind Association promoting wind
power but also finding new opportunities in Small
Hydro, Utility Scale Geothermal and Biomass
Projects. The company has a record of successful
projects and partnerships with international
partners.
Binatek is a Private owned Indonesian Company, established in year 1990
Binatek is independently developing several Clean Renewables Energy:
2 MW Biomass and 10 MW Hydro Electrical Power Plant (HEPP) in Buru, Maluku
Province
30 MW HEPP in South Sulawesi, as well as other locations in Indonesia
Binatek and its principals have participated and lead many energy efforts in Indonesia
especially related to geothermal energy

Why Develop Wind Farm in Indonesia

Indonesia has good wind sites with over 50 good sites

identified

Supportive government that is pushing the use

renewable energy based power plant in Indonesia
Source: ESDM,BPPT

Very good existing grid with capacity and PLN is

planning to add transmission and substations

Increasing energy consumption in Indonesia

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UPC On-going Projects in Indonesia with PPAs

Sidrap 70MW
Sidrap Regency,
South Sulawesi
Start Construction:
End 2015/Early 2016

Samas 50MW
Bantul Regency, Daerah
Istimewa Yogyakarta
Start Construction: 2016

Samas 50MW Wind Farm as the First Large Scale Wind Farm Project Signed
PPA
Samas 50MW PPA was signed during the launching of 35,000MW Program by President of Republic
of Indonesia, Joko Widodo at Bantul, Yogyakarta on May 4th 2015
UPC is working with local partner Binatek Energi Terbarukan to develop the Samas 50MW wind farm
on the coast near Yogyakarta
UPC has spent 3 years in development of the project (including gathering wind data) before the
signing of PPA
UPC and PLN has worked together for more than 1 year to complete the standardized and bankable
wind PPA which will be used for every wind projects in Indonesia
PPA negotiation is concluded and determined by the banks and lawyers as bankable
Turbine selection remains open
Transmission line length of app. 25km and substation to be built by the project company to PLN
technical requirements
Wind resource is Class 3-4, diurnal (10AM to 8 PM) and seasonal (higher in the dry season)
Financing will be more challenging due to lack of Govt Support Guarantee
Wind Turbine will be Class 3 on a tall tower due to higher wind speeds at height

Located in Bantul Regency, DI Yogyakarta

UPC Samas Wind Farm 25
Turbines 2 MW Each
Total 50 MW

Bantul,
Yogyakarta

Graphic Image of Samas Wind Farm 50MW Once Built

Challenges in the development of Samas 50MW Wind Farm

Wind is light but directional and predictable
Local residents are very supporting although
still to conclude the land purchases
Numerous permits needed while sometimes
the regulation is not very clear/conflicting
Sandy Soil
Permitting is progressing
but challenging
Development
Issue

Construction
, Engineering
Land re-enforcement is required
and Logistics
due to sandy soil and seismic conditions
The design needs to withstand
earthquake which occurred occasionally
in the region
No major transportation issues found but
cost higher than expected
Materials locally available

Tariff is obtained by direct negotiation

with PLN
Lengthy PPA negotiation process due
to new technology
Tariff for Samas 50MW Wind Farm has
been determined

Purchase
Price/Tariff

Financing
Starting and building any business in
Indonesia is time consuming,
complicated and expensive
Pioneer wind project concerns
financing entities
Need a multinational lead lending
institution (esp with no Givt support
letter)

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Sidrap 70MW Wind Farm is the 2nd UPC Project That Has Signed PPA
with PLN
Sidrap 70MW PPA is signed during during Econex event in Jakarta on August 19th 2015
The PPA negotiation is relatively quick because UPC and PLN is using the template from Samas PPA
UPC has gathered the wind data for Sidrap site from Jan 2013 and now has 5 MET towers
established and has used extensive SODAR campaigns
Currently proposing 2.5MW per turbine utility scale turbines
Transmission line length of app. 8km and substation to be built by the project company to PLN
technical requirements
Wind resource is Class II/III, and seasonal (higher in the dry season)
PPA negotiation is concluded
Sale and purchase agreements for land are 100% complete. Certification in process.
Access and logistics planning highly advanced
Early works contracts have started and geotech progressing currently on all WTG location.
Bank debt mandate signed and in due diligence, 3rd party bank advisors working
Expected Financial Close in March 2016
Targeting early 2017 Commercial Operations Date
Turbine supply agreement agreed
Other Construction Contractor selected and in final contract negotiations

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Located in Sidenreng Rappang Regency, South Sulawesi

UPC Sidrap Wind Farm 30
Turbines 2.5 MW Each
Maximum Total 70 MW at
connection point

JAKARTA

Sidrap, South
Sulawesi

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Graphic Image of Sidrap 70MW Once Built

Challenges in the development of Sidrap 70MW Wind Farm

Land ownership is not clear which makes
the certification process quite lengthy
Two studies on the grid integration and
stability was required to avoid any possible
negative impact to the current grid
The current grid only has limited capacity to
accept new power plant, especially
intermittent
Numerous permits need to acquired
while sometimes the regulation
Development
Issue
is not very clear/conflicting

Construction
, Engineering
and Logistics

No major transportation issues

but will need road enforcement and
expansion which is currently underway
Expansion of the PLNs substation is
required or tap connection
Locals contractors services available
allowing UPC to meet nearly 40% local
content

Tariff is obtained by direct negotiation with PLN

Tariff for Sidrap 70MW Wind Farm has
determined
Contract is bankable

Purchase
Price/Tariff

Financing
Starting and building any business in
Indonesia is time consuming,
complicated and expensive
Low risk tolerance for new projects
Local funding is almost impossible
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THANK YOU

Thank You
For Your Interest In
Clean Renewable Wind Energy

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Contacts:
Brian Caffyn
President Director
PT UPC Renewables Indonesia
Pusat Niaga Duta Mas Fatmawati
Blok C1 No.02 - 03, Jl. R. S. Fatmawati No.39
Jakarta 12150
Indonesia
CELL
Email:
Web Site:

+62 811 8182 488

brian.caffyn@upcrenewables.com
www.upcrenewables.com

Erwin Jahja, MBA

President Director
PT Binatek Energi Terbarukan
Pusat Niaga Duta Mas Fatmawati
Blok C1 No.02 - 03, Jl. R. S. Fatmawati No.39
Jakarta Selatan 12150
Indonesia

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PHONE: +62 21 721 00823

Email: erwin_jahja@yahoo.com

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