power generation

& energy electricity

Indonesia
issues in

Iwan Agung Firstantara

GM PT PLN (Persero) Unit Pembangkitan Jawa Bali
Thermofluid VI 2014
Yogyakarta, April 29, 2014
Gajah Mada University
About
Speaker

@ GM_UPJB
Iwan Agung Firstantara was born in Jogjakarta, on October 1969. He
graduated from Gajah Mada University with a major in Mechanical
Engineering in 1993, and Master of Management also in the same
University.
Iwan is a General Manager of PT PLN (Persero) Unit Pembangkitan
Jawa Bali, one of PLNs Strategic Business Unit that respondsible for
the Operation & Maintenance of 14 Power Generation Unit across
Java-Bali Interconecting System (making it the biggest total asset
compared to IP, PJB &IPP)
 Macro Economic Perspective
1 Facts of Indonesias Economic Situation

Indonesias Energy Outlook

2 Energy current Trends and Challenge

Power Generation issues

3 Fast Track Program, Energy Mix, & Environment-Efficiency

How technology solve Eletricitys Issue

4 Deal with Capacity & Efficiency matters
 Macro Economics Perspective
Facts of Indonesias Economic Situations

#Jakarta View #Wisma46

#BNITower Images taken from http://hqwide.com/
 comes to your mind
What
when you think of

Indonesia?

#HelloJakarta #Monas
#Istiqlalmosque
Images taken from http:// globe-walls .com/
 Biggest Country
in South East Asia

17.000 islands
3.1 million sq. km of sea
1.9 million sq. km of land
247 million inhabitants (2012)

#RajaAmpat #Beach
#BeautifulIndonesia Images taken from http://listofimages/
 Biggest Economy
in South East Asia

GDP $ 878 billion (2012)

GDP growth 6,2% (2012)

Inflation 4,3% (2012)

#Jakarta@Night #Pancoran
#Patung Dirgantara Images taken from http://wallpapersus
GDP

37,54
Capita

33,53
30,66
(million rupiah)

27,03
23,88
21,36
17,29
14,82
12,48
10,48
9,33
8,56
7,86
6,78

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013**

Source : BPS
 X-M -2 %
GDP
of 2013
Stat Discrepancy 5%

Investment 32 %

Government 9%

Consumption 54 %

The BIG growth of Indonesias GDP was

driven primarily by domestic consumption

Source : BPS
Emerging middle class in
Indonesia

Middle- & High- class in

Indonesia has rose 5
times higher in the last
25 years

Source : BI (2013) Images taken from http://teropongbisnis.com/

Indonesias middle-class
proportion:

Yellow: $ 2-4/ day

Source : BI (2013)
Indonesias Energy Outlook
Energy Current Trends & Challenge

Images taken from http://wallsave.com/

 Primary

Intensity
in Some Country

Source : BP Statistical Review of World Energy 2011 & World Economic Outlook Database April 2011, IMF
Energy Consumption
Capita
(BOE / Capita)

3,46
3,34
2,98
2,56

2,58
2,48

2,47
2,41

2,43
2,28

2,32

2,27

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source : BPS
 Electricity
Consumption
(in TWh) 65
60
55 55
50 51
48
46 47 46
42 41 44 44
40
39
36 37 36 36
34 33 34
31
27 28
25
23
21
17 18
15
12 13
11 11

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Business Industry Household

PLN divided its customer into 5 segments: (1) Business, (2) Industry, Source : EMR
(3) Household, (4) Social, (5) Government
 S i n c e 2 0 07
Household has outreach the electricity
consumption among other PLNs
customer segments

#JakartaView #BunderanHI
#MonumenSelamatDatang Images taken from http://globeimages.net/
Energy demand
has been increasing faster than economic
development and population growth

Images taken from natgeo society

Electricity Shortage
More than 70-80 million people
lack access to electricity

Images taken from http://phototony.com/

Electrification Ratio
(percent)

76
73
67
66
65
62

63
57
43
28
16
8

1980 1985 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012

Highest : Jakarta (99,99%)

Lowest : Papua (35,89%)
Source : EMR
Reliance on Subsidies
Electricity is heaviliy subsidised
and currently customers pay for
electricity at far below market
price.

Images taken from natgeo

 Fuel &
Electricity
subsidies have created a massive
burden on the state budget.

Their estimated cost to government in 2013 is Rp 284 trillion and

increasing to Rp 328,7 in 2014 (state budget plan).

Source : Ministry of Finance Images taken from http:// 3.bp.blogspot.com/

Primary Energy Supply
Exclude Biomass
(in percent)

23 22 24 24 21 21 22 19 24 25 23 21

13 15 15 19 17 19 23 27 23 23 24 27

60 57 57 53 57 55 51 50 49 48 47 48

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Oil Coal Gas Hydropower Geothermal Biofuel

Source :CDI-EMR
Demand of electricity is expected to grow fast
Driven by three main things:
1. Electrification program
To support government program to accelerate electrification ratio
2. Economic growth
To support manufacturing and service companies to produce products
and services
3. Captive taking over
Meet large consumer demand, to take over captive and to meet large
customer demand

Images taken from http://touristrack.com/

Power Generation Issues
Fast Track Program, Energy Mix, & Environment-Efficiency

#LabuanCFSPP
#FTP-1 #2x300MW
 Electricity Supply Chain
PLN P3B as System Owner
and Market Operator
P3B as Transmission Provider
Power Generation (PLN or IPP) Distribution

Primary Power End

Transmisi Distribution
Energy Generation Customer

Availability of Availability: Availability: Availability: Services:

Primary Energy: reliable, safe, reliable, safe, reliable, safe, simple, easy,
quality, quantity, efficient, quality efficient, quality; efficient, quick, quality;
time, cost Economic Sufficiency &
optimisation; quality of supply

Standard Standard Standard Standard

Service Service Service Service
Standard of
Public
Service
 Issue#1

To meet Indonesias growing demand

PLN is mandated to implement Fast Track Program (FTP)
for capacity expansion

#RembangCFSPP #FTP-1
#SubcriticalPulverized
 Issue#1

FTP Phase 1 :
42 Coal-Fired Steam Power Plants of PLNs Project
10 power plants with capacity of 6.900 MW in Java-Bali
32 power plants with 2.252 MW outside Java-Bali

FTP Phase 2 :
93 power plants (Hydro, Geothermal, & Coal-Fired Power Plant)
21 power plants of PLNs Project
72 power plants of Partnership Project

#TjAwar-awarCFSPP
#CoalHandling #StackerReclaimer
 Issue#1

Chineses Power Plants (FTP-1)

are cheaper than Japaneses PP, but the
quality has likely not yet proven.
PLN also suffer from project completion
delay.

#PalabuanRatuProject
#Construction #FTP-1
 Issue#1

Even though
The FTP has improved the
company's internal cash flows
and meet the 9% of electricity
demand growth.

It has also minimize the Fuel

contribution in PLN Fuel Mix
from 22% in 2009 to 12% in
2013.

Images taken from http://dl.bizhi.sogou.com/

 Issue#2

Fuel Mix
2008 2019
3% 2%

9% 16%
36% 6%
17%

18% 58%

35%

Fuel Coal Gas Hydro Geo Fuel Coal Gas Hydro Geo

1% replacement of Fuel into Coal will generate financial

efficiency up to Rp 1,74 T (in 2012) . Source :RUPTL 2010-2019
 Issue#2

Indonesias electricity
is still rely on coal-based power plants
Contribute approximately 58% of the total electricity generated

Images taken from http:// ncealliance.com/

 Issue#3
Reciprocal Relationship in
coal power plant

Environment

Efficiency
 Issue#3

Clean Coal Technology

Every option capable of reducing emissions upstream, downstream,
or within the power generation (energy conversion) process

Images taken from http://ak2.picdn.net /

 Issue#3

For new power plants

Could consider this following options:

Circulating fluidized bed combustion (CFB)

Integrated gasification combined cycle (IGCC)

Supercritical & Ultra-supercritical (USC) pulverized coal technology

#IGCC #CleanCoalTech Images taken from http:// saistrip2010.webatu.com /

 Issue#3

For existing power plants

Could initiate rehabilitation & recondition, to:

Decrease hidden capacity

Improve efficiency

#MuaraKarang #CCPP
How Technology Solve Electricity Issues
Deal with Capacity and Efficiency matters

Images taken from http:// www.iorise.com /

Efficiency & capacity degradation
Efficiency
(%) Capacity
(%)
39
New Technology

37 Improve
100
Restore

35 75
Rehabilitation
SI ME SI SE SI ME SI
Recondition
Annual Inspection 50
33

25

1 2 3 4 5 6 7 8

Lifetime
(Years)
How to deal with Capacity & Efficiency matters?
Capacity: Efficiency:
Coal Mixing Tiny-oil Burner
Coal Drying Heat Balance modelling

#PalabuanRatu #Construction
#FastTrackProgram
Coal mixing
the process of blending two different types
of coal (low & medium range coal) to obtain
a desired efficiency/ load profile.

Coal layering
The process of placing the med range coal
at specific boiler burner layer to obtain a
desired efficiency/ load profile.

Heating value
Low Range Coal = + 4.200 kCal/kg
Medium Range Coal = + 4.900 kal/kg
 Coal drying
The process of heating the coal
feed to get a dry coal feed and
increase coal quality

Is being constructed at Labuan &

Lontar CFSPP

Expected to increase coal quality

up to 1000 kCal/kg

Images taken from http:// carzz.co /

 Original Tiny-oil burner
burner A modified boiler burner to obtain
less fuel oil consumption.
Could reduce the fuel consumption
Tiny burner up to 85% (@Labuan CFSPP).
 Heat balance
modelling
Implemented through a Gatecycle,
heat balance modelling discover all
of plants main equipment and
predict the modelling.
The modelling help the management
to develop more accurate Root Cause
Failure Analysis (RCFA).

Images taken from http:// st.gdefon.ru /

PLN Generation Challenges
 Challenge#1

Tech challenge
Heat Rate Comparison in 2013
(in kCal/kWh))

2.732

2.403

TJB IMY
(Non-FTP) (FTP)
 Challenge#2

Turbine
efficiency
improvement
There has been no
significant breakthrough
on turbine efficiency
improvement

Images taken from http://deltatest.de /

 Challenge#3

Heat Balance
Modelling
Challenge on:
Accuration
HR Competency
Alternative model

Images taken from http:// img0.mxstatic.com /

 Challenge#4

PBR (Performance Based Regulation) is given by the Government to Source :World Bank Team
determine PLN Allowed Revenue.
 Epilogue
Efficiency improvement in Power Generation represent the
largest opportunities in reducing subsidies, where
thermofluid takes the most improtant role.

#Sunset #Fisherman
#BeautifulIndonesia Images taken from natgeo
 An institution
to bridge the
interest
between
business
(power
generation)
and
universities has
not yet
established.
Images taken from http://austinareaphoto.com /
Thankyou
Presented by:
Iwan Agung Firstantara
Mail : iwanagungf@gmail.com
Twitter : GM_UPJB