Generation Dadan Kusdiana Directorate General of Electricity and Energy Utilization Republic of Indonesia Introduction Biomass available in all part of the country; Varied in different geographical location; Generally, the use of biomass is still in traditional activities; Biomass in the form of residue and waste is not utilized yet. Biomass energy Energy form: Solid Direct combustion, gasification, pellet Liquid Biodiesel Bioethanol, biomethanol Biofuel Gas Biogas Resource: Forestry Agro-industrial waste Crop residues Municipal city waste Biomass energy technologies currently being developed Cooking stove Gasification and CHP generation Biodiesel Biogas
Policy developments for biomass Promoting Green Energy Policy Priority in utilizing local energy resources
Biomass programmes Short term (5 years) Investment Promoting renewable energy programmes to financial institutions Simplifies credit procedures Microfinance Developing public-private partnership Fiscal and tax incentives Fiscal incentives (energy royalty, interest free loan) Tax incentives (VAT, luxury tax, etc) Energy pricing Continue to remove energy subsidies Premium pricing for renewable energies Information Research and development
Biomass programes Long term (up to 20 year) Non-fossil fuel obligation Mandatory in utilizing environmentally- friendly technologies Financial institution for renewable energy projects National technical know-how on biomass Ministry of Energy and Mineral Resources Directorate of New Renewable Energy and Energy Conservation Research and Development Center for Energy Technologies and Electricity Agency for Assessment and Application of Technology Energy Technology Laboratory Engineering Center
Level of national awareness and acceptance Government has decided to put at least 5% of national electricity demand produced from renewable energy including biomass Kyoto Protocol has been ratified; CDM project as well as developers begin to growth ISO14002 in relation with renewable energy utilization; the use of biodiesel Sources Potential Installed Capacity Hydro 75,000 MW 4,200 MW (6 %) Geothermal 27,000 MW 802 MW (4 %) Mini/Micro Hydro 459 MW 64 MW (14 %) Biomass 49,810 MW 302 MW (6 %) Solar Energy 4.8 kWh/m 2 /day 5 MW Wind Energy 3-6 m/sec 0.5 MW Total 5375 MW Note: 1. Operating time is 24 h/d for biomass, biogas, geothermal and micro hydro, 8 h/d for solar PV and wind 2. Total land area for wind power generation per unit is 250 x 250 m2 3. Total potential area for solar generation is equivalent to total area of Indonesia 4. Total geothermal potential was based on the sum of proven reserves, expected and speculative possible and hypothetical reserves 5. Wind energy potential as well as installed capacity was based on generating capacity of 20 kVA (15 kW) Renewable energy status Potential for biomass technologies in selected industries Type of industry Mill size Capacity of CHP technology Biomass potential for power generation 1. Saw mills 1000-3000 m 3 /y 40-100 kWe 0.6 m 3 wood waste/m 3 sawn timber ~ 130 kWh/m 3 sawn timber 2. Ply wood mills 40 000-120 000 m 3 /y 1.5 3 MWe 0.8 m 3 wood waste/m 3 plywood ~ 200kWh/m 3 plywood 3. Sugar mills 1000- 4000 TCD 3-10 MWe 0.3 t bagasse/t sugarcane ~ 100 kWh/t sugar cane 4. Rice mills < 0.7 t/h >0.7 t/h 30-70 kWe 100-300 kWe 280 kg husk/t paddy ~ 120 kWh/t paddy 5. Palm oil mills 20- 60 t FFB/h 0.2 t EFB/t FFB 0.2 t fibre/t FFB 70 kg shells/t FFB ~160 kWh/t FFB Note: TCD= tones of Cane per day; FFB= Full Fruit Bunches; EFB= Empty Fruit Bunches. Source: ZREU (2000) Level of potentially available biomass residues for power generation Biomass Main region Production (million ton/year) Technical energy potential (million GJ/year) Remarks Rubber wood Sumatera, Kalimantan, Java 41 (replanting) 120 Small logs d <10 cm Big and medium logs are used as fire wood in brick and roof tile industries: price 20,000- 30,000 IDR/m3 Logging residues Sumatera, Kalimantan 4.5 19 Sawn timber residues Sumater, Kalimantan 1.3 13 Residues of factories are often used as fire wood by local communities, residues available for free Plywood and veneer production residues Kalimantan, Sumatera, Java, Papua, Maluku 1.5 16 Sugar residues Java, Sumatera, South Kalimantan Bagasse: 10 Cane tops: 4 Cane tissues: 9.6 78 Bagasse is generally used in sugar factories (90%) The use of cane tops and tissues needs to be investigated Rice residues Java, Sumatera, Sulawesi, Kalimantan, Bali, Nusa Tenggara Husk: 12 Bran: 2.5 Stalk: 2 Straw: 49 150 Stalk and straw are generated at the field and generally burnt, in some areas used for feeding or raw material for paper industries Husks often burnt uncontrolled Coconut residues Sumatera, Java, Sulawesi Shell: 0.4 Husk: 0.7 7 Residues are generated decentralized and usually left on the plantation field. Largely used as fire wood and for the production of charcoal Palm oil residues Sumatera, new areas: Kalimantan, Sulawesi, Maluku, Nusa Tenggara, Papua Empty fruit bunches: 3.4 Fibers: 3.6 Palm shells: 1.2 67 Palm shells and fibers are common fuel sources, EFB are generally incinerated Estimated power capacity generated from biomass waste* Industries Estimated power capacity, MW Palm oil mills 90 250 Sugar mills 510 1,030 Rubberwood industries 680 1,600 Logging industries 390 Plywood waste 113 Forest clearing residues 666 9,330 Total 2,349-12,713 * ESMAP, 1994 Estimated surplus power capacity in palm oil industries Province
Total capacity (t FFB/h) Power capacity based on CPO residues (MW) Lower estimate Higher estimate Aceh 230 7.0 19 North Sumatera 2070 63.0 168 Riau 300 9.1 24 Jambi 10 0.3 Bengkulu 30 0.9 South Sumatera 120 3.6 10 Lampung 70 2.1 West Java 30 0.9 West Kalimantan 90 2.7 East Kalimantan 30 0.9 South East Sulawesi 30 0.9 Irian Jaya 30 0.9 Total 3,040 92 247 Note: Calculated on the basis of 7884 operating hours per year. The lower estimate takes account of an efficiency of 15% while the higher estimates 35%. Source: from ESMAP, 1994. Prospective options for generation capacity in palm oil industries Large centralized systems (30 MW and up) utilizing EFB as residues and a central collection system; Medium size regional systems (3 5 MW) utilizing EFB from a number of mills in a designated radius; Decentralized systems (500 3 MW) for individual palm oil mills. No. City Population Total waste (ton/day) 1. Jakarta 9,784,308 4,892 2. Surabaya 2,913,973 1,457 3. Bandung 2,603,855 1,301 4. Bekasi 1,577,958 789 5. Tangerang 1,466,596 733 6. Semarang 1,454,932 727 7. Malang 828,710 414 8. Surakarta 534,079 267 9. Denpasar 485,538 243 10. Yogyakarta 442,824 221 11. Bogor 306,246 154 Source: R. Sudrajat, 2004 Daily garbage production in some main cities Composition of garbage in Metropolitan cities (in percentage) Composition Medan Palembang Bandung Semarang Surabaya Jakarta U.Pandang Papers 17.5 18.8 10.4 12.28 12.45 10.11 14.15 Wood/bamboo 0 - 0 25.74 - 3.12 1.15 Kitchen wastes 48.2 75.2 63.6 34.12 71.85 65.05 65.84 textile 0 0.3 1.8 1.56 1.94 2.45 1.22 Rubber/leather 2.3 0.5 4.1 1.08 0.54 0.55 0.36 Plastics 13.5 3.3 5.6 13.5 7.6 11.08 6.19 Metal 3.5 0.8 0.9 1.82 0.9 1.9 1.89 Sand, ceramic, dusts - - - 0.49 - - 1.28 Glass 2.3 0.4 1.5 1.74 0.9 1.63 2.33 Others 12.7 0.6 12.1 7.64 3.82 4.11 5.6 Source: Ministry of Public Works of Indonesia, 1999 Cost-effectiveness of biomass vs commercial applications Case of Rice husk gasification Component cost Diesel genset and gasifier (Rp/kWh) Diesel generator set (Rp/kWh) Gas Power Electricity Generation (Rp/kWh) Investment 234.0 194.0 227.0 Fuel 324.0 495.0 231.0 Variable OM 1.8 1.8 1.2 Total 559.8 640.8 459.2 Simple economic analysis Rice husk-diesel generator Conventional diesel generator Diesel fuel consumption 0.06 L/kWh 17,597 L 0.30 L/kWh 87,984 L Diesel fuel price, Rp/L 1,650 1,650 Diesel fuel cost, Rp/year 29,034,720 145,173,600 Rice husk, Rp. (1.5 kg/kWh, 439,920 kg, Rp. 50/kg) 21,996,000 Gasification cost, Rp. (Rp. 150/kWh) 43,992,000 Total production cost, Rp. 95,022,720 145,173,600 Specific fuel cost, Rp/kWh 324 495 Total saving, Rp. 50,150,880 Rice husk gasification project facility Haurgeulis, West Java Project Description 10.3 MW Palm Oil Residue Plant, Pangkalanbrandan, Sumatra. Project Description Conventional steam cycle system The plant will utilize: Empty Fruit Bunches: 57% Shell: 31% Fibre: 12% Fuel sourced from 6 mills. 100% of the required fuel can be supplied within 80km. Reduce dumping of 110,000 tonnes of EFBs annually. Net electrical output 10.3 MWe sold to PLN, Area II under 20 year PPA. Financial Model Results Total Project Cost US$ 18 million Debt/Equity Ratio 60 : 40 Debt Interest Rate (during operations) 8.5 % Terms of Debt 2 + 10 years 20 years IRR (after local tax) 17.36% (without sale of CERs) Characteristic renewable energy for electricity generation No. Type of energy Investment cost (US$/kW) Electricity generating cost (Cent/kWh) 1. Microhydro 700 2,500 3 - 5 2. Solar -Photovoltaic -Solar thermal
3.4 6 Source: MEMR, 2001 Market for biomass Government energy policy to support utilization of renewable energy including biomass PSK Tersebar Electricity crisis Recovery of economic activities