Introduction of co-generation and solar power generation ...gec.jp/jcm/en/wp-content/uploads/2017/04/2015FS205_sum_en.pdf · JCM Feasibility Study (FS) 2015 – Final Report JCM Feasibility

JCM Feasibility Study (FS) 2015 – Final Report

JCM Feasibility Study (FS) 2015

Summary of the Final Report

“Introduction of co-generation and solar power generation system in large shopping malls”

(Implementing Entity: Nomura Research Institute)

1．Overview of the proposed JCM Project

Study partners

Nomura Research Institute (implementing entity): Progress management of

research/Summarization

Osaka Gas Co. Ltd. (co-implementing entity): Energy service/system study

AEON MALL (partner): Promotion of the overall plan

AEON MALL Indonesia (partner): Promotion of the overall plan, Provision of site

data

Hitachi Ltd. (partner): Cooperating in designing cogeneration system

Project site Indonesia Bekasi Delta Mas City

Description of project

This is a project to realize a large amount of CO2 reductions through introducing a

natural gas cogeneration system and energy systems such as solar power in one

of the large shopping malls of AEON MALL, which plans to open many malls in

the Jakarta area.

Expected project implementer

Japan AEON MALL or energy service company (TBD)

Host country PT. AMSL Delta Mas (Joint venture of AEONMALL Indonesia

and PT.PSP, subsidiary of Sinarmas Land)

Initial investment ¥937,000,000 Date of groundbreaking

2016 or 2017 (TBD)

Annual maintenance cost

¥61,700,000* Construction period

18 months (TBD)

Willingness to investment

Investment to be fixed if

the support grant for

facilities is adopted.

Date of project commencement

2019 (TBD)

Financial plan of project

When the project owner is AEON MALL, it uses its own funds.

When the project owner is an energy service company, it uses the funds of its

Japanese company. In either case, they are big companies with a strong

financial basis, posing no financing problems.

CO2 emission reductions

9,161 (tCO2/year)

GHG emission reductions

Same as CO2 reductions

*i Annual maintenance cost among cogeneration and air-conditioners


2. Target Project of the Study

(1) Outline of the Project The purpose of this project is to reduce the use of fossil fuel-energy at the mall through introducing a high-efficient natural gas cogeneration system and a solar power system as energy supply system of AEON MALL Delta Mas City which PT. AMSL Delta Mas is planning to build in Delta Mas City, and eventually contribute to CO2 reduction of about 9,000tons. The surrounding area of the AEON MALL planned site has not been developed. In Indonesia (Jakarta especially), in many cases, developments are promoted outwards to surrounding areas with shopping malls as a center. Thus, the surrounding area is planned to develop after the opening of AEON MALL or at the same time of its construction in this project.

Figure 1 Map of the site

Source) GIIC Leaflet

(2)Background of the Project It is assumed that AEON MALL becomes the project owner of the application for the facilities support program. For the purpose of reducing investment burden on PT. AMSL Delta Mas, an Indonesian local corporation and SPC of this project, AEON MALL is to apply for the facilities support program. Indonesia is short of grid power capacity, resulting in power supply instability. Especially around Jakarta, power demand and supply balance is tight, causing frequent electric outages including planned outage. The power supply deficiency of the state-run power PLN is complemented by independent power providers (IPP) and private power operators (PPU). Especially, the following methods are needed; natural gas cogeneration which is comparatively low in energy waste and solar power generation which raises the rate of energy self-sufficiency. The Indonesian energy policy is promoted aiming at a higher rate of energy self-sufficiency. The mainstream trend is to expand the use of its abundant resources, coal and natural gas, and renewable energies. So, this project fits the country’s policy.

3. Study Plan

(1) Subject and Contents of the Study As a direction of conducting this research, besides several JCMFS in the past, we researched to solve issues shown below in realizing this project as a JCM project, through making use of experiences in supporting successfully adopted applications for the facilities support program.

【Financial plan for initial investment】

Assumable tasks Item to research/study

Specifying investment plan based on facilities

Confirmed costs to be supported and the timing of transactions in the consortium, while conducting hearings with companies which had experienced the facilities support program, based on the requirements for costs which could


support program be supported and the regulations such as profit exclusion, etc.,

【Operation and maintenance plan（incl. MRV cost）】


Calculation of facility maintenance cost

Calculated the maintenance cost of the cogeneration system, etc.

Calculation of MRV cost

Judged that MRV monitoring was possible with the current design of the energy control room and the planned personnel because BEMS(Building Energy Management System) is to be introduced, no matter whether energy-saving equipment was introduced or not and confirmed that almost no additional cost was to be incurred for monitoring.

【Outline design】


Research of energy environment of the project candidate site

Specified an available energy infrastructure at the planned site and researched the prices of gas and electric power by hearing local gas/power companies (PGN and PLN).

Decision and design of systems fitting local energy infrastructure

Selected the final plan after generating/studying system configuration plans that could fit the local energy environment through hearing manufacturers and collecting data of the assumable demand of AEON MALL Dalte Mas City

【Construction plan】


Timing to order facilities and its fitness to the timing of start of facilities support program

Attempted to coordinate the ordering plan and construction plan so that the timing of order for facilities of this project should fit the timing of order required in the facilities support program 2017, since the plan was behind by about half a year.

【Project management plan】


Reconstruction of organization, conference system and instruction/order structure

Studied the JCM MRV system, based on organization of the energy supply sector and management sector of existing BSD shops.

(2) Organizational Plan of the Study Below are the names and roles of organizations which conducted studies.

Table 2 Roles in the study

Name Role

Nomura Research Institute Control/facilitate/management/summarization of the research overall

Presentation at various reporting occasions/meetings and generation of

materials

Study of scheme/advice for the facilities support program

Study of spread possibility

Osaka Gas Study/promotion of the energy service project

Study of energy systems

Feasibility analysis as a JCM project

Study of energy management/MRV scheme

AEON MALL Study/promotion of overall plan of AEON MALL Delta Mas City

Study of energy management/MRV scheme

PT. AEONMALL Indonesia Study/promotion of overall plan of AEON MALL Delta Mas City

Hitachi Ltd. Support of studying energy systems


Figure 3 Organization of the study

(3) Study Schedule We spent time in the first half of September for processes to explain the project to mainly local corporations, the local government and so on and obtain their understanding. From the latter half of the month, we started studying the business model and the consortium system. From the middle of October, we started studying the system structure based on collected information.

Table 4 Study schedule

4．Study Results

(1)Feasibility of the Project 1) Implementation Plan of the Project ① Scheme of the Project

There are two possible cases in this project as below, depending on whether the local counterpart AEON MALL Delta Mas (AMSLD) owns its power generation/air-conditioning facilities or not.

CASE ① AMSLD owns and operates the system.

CASE ② The third party energy supply company owns and operates the system.

2014 2015

Sept. Oct. Nov. Dec. Jan. Feb.

Field research,

committee

Building demand

assumption

(power/air-

conditioning)

Field energy

environmental

research

Energy system

study

Finance/

consortium

system

Commercializatio

n assessment

Cross-

development/

ripple effect

Methodology

preliminary

research

Report/presentation

material generation

Load

assumption

Kick-off

Explanation to

the government

Legal system/

Infrastructure confirmation

▲

▲

▲ ▲

▲

Charge

researchInterview

(gas company)

System study

(local costs estimation,

drawings, etc.

Facilities support program

Commercialization assessment

Ripple effect analysis,

CO2 reduction potential analysis

Various data collection

Conference with the

host country

▲

▲

▲

Legal system

Consortium system study Financing study incl. subsidy

Field research/MTG

AEONMALLINDONESIA

NRI

Osaka Gas

Indonesian governmentalorganizations

Cooperation

Cooperation

Cooperation

Various consulting/report

Promotion of the overall plan of the mall

・Control/facilitate/management/

Summarization of the research overall

・Study of scheme/advice for the

facilities support program

AEON MALL

Promotion of the overall plan of the mall

Study of energy management/

MRV scheme

Hitachi

Cooperation

Support for the energy system study

Local Japan

•Study/promotion of the energy

service business

•Study of energy systems

•Feasibility analysis as a JCM project

•Study of energy management/

MRV scheme


Figure 5 Project scheme

Since the scheme differs depending on whether facilities support can be adopted or not, we have not

decided which it would be, CASE ① or CASE ②, in this FS.

② Study of the energy system

We designed the outline of the energy system, referring to specification requirements such as Delta

Mas’s shopping floor area and energy load data, etc. of BSD shops in Indonesia which had opened. This

led us the following energy system.

Figure 6 Energy system

Source) Osaka Gas

CASE① CASE②

Energy service

company

（Indonesian local

corporation)

AMSLD（SPC）

MOE

Subsidy

Equipment

manufacturer

Construction

company

Energy

service

company

Subsidy

AEON MALL

AMSLD(SPC)

International

consortium

Subsidy

MOE

Subsidy

Legend

：Chair of the facilities support project

：Owner of the facilities

Equipment

manufacturer

Construction

company

Ordering Ordering

Energy service

International

consortium

Absorption chiller

(670RT)Gas engine

3,800kW

z

Chiller

1,000RT

Chiller

1,000RT

Chiller

1,000RT

Chiller

1,000RT

Chiller

1,000RT

CS

H

CR

H

EXT

Chiller

Chiller

PV

(106kW)

Power

Air-

conditioning

PLN(National power company)

PGN(National gas company)

Scope of JCM

MITSUBISHI HEAVY

INDUSTRIES, LTD.

Power efficiency 49％

Hitachi-Johnson Controls Air Conditioning, Inc.

Exhaust gas feed type

Poly crystal


③ Construction plan and operation plan of the project

Table 7 Whole project schedule

2) Financial Plan of the Project ①Assumable necessary cost

Out of the cost necessary to build AEON MALL Delta Mas, we broke down those in the scope of the facilities introduction support program (See the next page). Basically, we looked at energy-supply facilities and equipment, installation, and pipe laying work and electric works to connect facilities and equipment. As a result, the cost necessary for the energy-supply system was ¥1,730millions while the cost necessary for became ¥937millions, excluding those relating to turbo refrigerators. Turbo refrigerators including electric chillers do not contribute to energy saving on their own, so we did not include them in the scope of the facilities introduction support program. We excluded engineering and construction and interior works of buildings, etc. and non-energy-supply facilities and equipment.

Table 8 Cost necessary for this project (rough estimate)

Item Amount

Items in the scope

1. Machinery/equipment ¥545 millions

2. Pipe laying work ¥64 millions

3. Automatic control ¥39 millions

4. Electric work ¥90 millions

5. Auxiliary facilities for the machine room

¥46 millions

6. Cost for temporal works

¥26 millions

7. Cost of field management

¥35 millions

8. Miscellaneous expense

¥92 millions

(sub-total)） ¥937 millions

Items out of the scope

Turbo refrigerator-related ¥793 millions

Total ¥1,730 millions

Source) Osaka Gas

②Analysis of economic performance

The analysis of economic performance of this project based on the below prerequisites indicated that the number of years required for recovering the investment including the initial cost and running cost is 5.7

2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Project plan

(to be decided)

Application

proceedings for

facilities support

JCM registration

proceedings

Commercialization

assessment

Feasibility studyFacilities support program (1st

public invitation of FY2017)

Application for

permits ~acquisition

Commercializatio

n assessment

Basic

design

Open commencement

of construction

Ordering a

general contractor

Methodology

preliminary researchMethodology registration

Outline design

PDD registration Commencement

of monitoring

Land development

Ordering

facilitiesAcceptance

inspection

Period for construction

Detail design

Adoption/grant

to be decided

Acceptance

inspection


years when the support is granted and it becomes 9.5 years when no support is granted. They are compared in detail as below.

Analysis result

BAU This project

Initial cost ¥993millions With support ¥1,355millions*3 Without support ¥1,730millions*2

Yearly running cost*1 ¥555millions ¥456millions

Payout time*4 With support ― 5.7 years

Without support

― 9.5 years

③ Financing plan

The percentage of investment of AMSL Delta Mas, the operator of this mall, is 67% by AEON MALL Indonesia and AEON MALL, the headquarters in Japan, is planned to collect funds. At the moment, no problem is foreseen in collecting fund and additional fund-raising is not assumed.

(2) Permits and Licenses for the Project Since who owns the facilities and the system/roles relating to operation and power supply have not finalized in this project now, it will be necessary to study permits and approvals necessary as the system takes shape. Below is the list of necessary permits and approvals by case.

Table 9 Permits and Licenses

Case permits and approvals necessary

Acquirer Reason

① The mall operator

owns the facilities and operates them themselves.

Power supply operator permit (IUPTL)

Mall operator

To provide power supply services (power purchase from PLN and private power generation, charging to tenants)

Operation certificate (SLO)

Mall operator

To certify that it can operate private power generators

② A lease company

owns the facilities and the mall operator operates them.

Power supply operator permit (IUPTL)

Mall operator

To provide power supply services (power purchase from PLN and private power generation, charging to tenants)

Power support operator

permit （IUJPTL）

Lease company

To operate and maintain power generators

Operation certificate (SLO)

Lease company

To certify that it can operate private power generators

Source) Created by Osaka Gas based on field surveys

(3) Contribution from Japan It is expected to create a large number of new jobs for over 3,000 people in total in Delta Mas City now under development. In the city, there are plans of a huge industrial park of as large as 1,300ha, business district, commercial facilities, educational facilities, residential areas, etc. Among them, it is expected that a large shopping mall will play a core function to develop the town. Its ability to attract customers can greatly contribute to the prosperity of Delta Mas City in the long run through integrating residential development, other commercial facilities and educational facilities.

(4) Environmental integrity and Sustainable development in host country

1) Environmental integrity In this project, it is planned to implement various environmental measures in the mall, while an

*1 Running cost for whole building *2 1,730M is whole initial cost and 937M is for project boundary of JCM. *3 A support rate of 40% for project boundary was used. *4 Payout time is calculated on JCM boundary.


energy-saving system is to be implemented, consisting of a cogeneration system and solar power generation. Although, at the moment, any environmental measures take shape except the energy system, it is expected that the mall will become environment-friendly since similar measures are supposed to provide to those of AEON MALL No.1 in business and malls in other countries.

2) Sustainable Development in host country The concrete store-roll-out plan of AEON MALL in Indonesia has been ongoing up to No. 4 as of today (see the below table). Since AEON MALL adopted an aggressive store-roll-out and development in China and ASEAN countries as its strategy for growth, the number of AEON MALLs is expected to increase. Urbanization is promoted as Indonesia grows in economy and shopping malls play an important role in creating communities in urban development. By integrating various commercial facilities around a shopping mall and preparing a transportation network, it is expected that building AEON MALL there triggers communities in Indonesia to develop and raise their living standard further. Furthermore, AEON MALL is an environment-friendly shopping mall with various environmental measures provided, besides an energy-saving energy system and solar power generation. It is positioned as model shopping mall in Indonesia and it can contribute to sustainable development of Indonesia by inspiring its customers and people living around it to become environment-conscious.

Table 10 Store-roll-out plan of AEON MALL in Indonesia

Name Year of opening

Location

No. 1 AEON MALL BSD CITY 5 / 2015 BSD City, Tangeran, Banten

No. 2 AEON MALL Garden City Jakarta

FY2017

（plan） Jalan kakung, East Jakarta

No. 3 （tentative name）

AEON MALL Delta Mas

2019 year

（plan） Bekasi, West Java

No. 4 （tentative name）

AEON MALL Sentul City

FY2019

（plan） Sentul City, Bogor, West Java

Source) AEONMALL

5. JCM methodology Development

(1)Data Collection and Analysis 【Difference between BAU and reference】

In this methodology, BAU equipment is consisted of 6 turbo refrigerators only. The hypothesis made is that these 6 refrigerators are of high-efficiency in a conservative reference was set up based on BAU. Therefore, saved energy by replacing low-efficiency turbo refrigerators with high-efficiency ones is not rendered as reduction credit in this project.

Table 11 BAU and reference, Image of emissions of this project

Source) Created by NRI based on a new mechanism platform “latest trend of Joint Crediting Mechanism (JCM))”

【Calculation formulae of reductions】

The reference assumes a case where the entire power demand is fed from a grid in this project. Thus, it can be obtained by multiplying the sum of the entire power demand derived from cogeneration, solar power and grid supply for the shortage and the power consumption when cold energy from waste

BAU：Grid＋Low efficient chiller

REFERENCE：Grid＋high efficient Chiller

PROJECT：Grid＋Cogeneration＋PV

＋high efficient chiller


energy/heat recovery refrigerators was calculated based on the assumption that it is derived from turbo refrigerators by the grid emission factor.

𝑅𝐸𝑝 =∑(𝐸𝐶𝑅𝐸,𝑝 × 𝐸𝐹𝑒𝑙𝑒𝑐)

𝐸𝐶𝑅𝐸,𝑝 = 𝐸𝐶𝑃𝑗,𝑔,𝑝 + 𝐸𝑃𝑝𝑗,𝑠,𝑝 + 𝐸𝑃𝑝𝑗,𝑐,𝑝 + 𝐸𝐶𝑅𝐸,𝑡,𝑝

𝐸𝐶𝑅𝐸,𝑡,𝑝 =𝑅𝑃𝑝𝑗,𝑒,𝑝

𝑅𝐹𝑒𝑙𝑒𝑐

𝑅𝐸𝑝 : Reference emissions during a period p [tCO2/p]

𝐸𝐶𝑅𝐸,𝑝 : Virtual total power demand during a period p [MWh/p]

𝐸𝐹𝑒𝑙𝑒𝑐 : CO2 emission factor of the power grid [tCO2/MWh]

𝐸𝐶𝑝𝑗,𝑔,𝑝 : Power supply from the power grid of the project during a period p [MWh/p]

𝐸𝑃𝑝𝑗,𝑠,𝑝 : Generated solar power of the project during a period p [MWh/p]

𝐸𝑃𝑝𝑗,𝑐,𝑝 : Generated cogeneration power of the project during a period p [MWh/p]

𝐸𝐶𝑅𝐸,𝑡,𝑝 : Power consumption by virtual turbo refrigerator during a period p [MWh/p]

𝑅𝑃𝑝𝑗,𝑒,𝑝 : Cold energy generation by waste energy/heat recovery refrigerators of the project during a period p [MWh/p]

𝑅𝐹𝑒𝑙𝑒𝑐 : Cold energy generation efficiency of turbo refrigerators [MWh/MWh]

In this project, CO2 emissions are originated from the entire power received from the grid and from fuel consumption of the gas engine. The amount of grid power reduction through solar power generation is included in the total power received from the grid.

𝑃𝐸𝑝 =∑(𝐸𝐶𝑃𝐽,𝑝 × 𝐸𝐹𝑒𝑙𝑒𝑐 + 𝐺𝐶𝑃𝐽,𝑝 × 𝐸𝐹𝑔𝑎𝑠)

𝑃𝐸𝑝 : Emissions of the project during a period p [tCO2/p]

𝐸𝐶𝑃𝐽,𝑝 : Power received from the grid in the entire energy system during a period p [MWh/p]

𝐸𝐹𝑒𝑙𝑒𝑐 : CO2 emission factor of the power grid [tCO2/MWh]

𝐺𝐶𝑃𝐽,𝑝 : Natural gas consumption by the gas engine during a period p [m3/p]

𝐸𝐹𝑔𝑎𝑠 : CO2 consumption rate of natural gas [tCO2/m3]

Thus, the CO2 reduction can be calculated as below.

𝐸𝑅𝑝 = 𝑅𝐸𝑝 − 𝑃𝐸𝑝

【Projection of CO2 reduction】

The above formula gives 33,333 t-CO2 of the reference emission, 24,172 t-CO2 of emission of the project and 9161 t-CO2 of reduction.

(2)Organizational Plan for MRV 【Monitoring system】

Below is the monitoring system in CASE ② (an energy supply servi￥ce business is carried on).

Although the energy system is operated by AMSL Delta Mas, an energy supply service company carries

out maintenance/improvement, monitoring and reporting to the third party organization. In CASE ①, these

are carried out by AMSL Delta Mas. It is planned to introduce BEMS similar to one used in existing BSD shops.

𝐸𝑅𝑝 : CO2 reduction during a period p [tCO2/p]

𝑅𝐸𝑝 : Reference emission during a period p [tCO2/p]

𝑃𝐸𝑝 : Emissions of the project during a period p [tCO2/p]


Figure 12 Monitoriing system of the energy supply service business

Source) Materials for study by Osaka Gas

【Monitoring facility】

The central monitoring facility monitors and controls lighting/air-conditioning equipment and power generation/heat source facilities. It also sends necessary data to an external system as a part of external cooperation. Table 9 shows the function of the central monitoring facility. Among the functions shown, those used for JCM monitoring are the “document recording”, “power demand history” and CSV file output functions from the recording function.

Table 13 List of monitoring functions

Grand category Sub-category

Monitoring function State monitoring Alarm monitoring Service time/frequency monitoring

Search function Individual maneuvering Maneuvering setting Group maneuvering

Recording function Document recording Manipulation history recording Operation history recording Alarm history recording Power demand history ->CSV file output(date, time, tag, value/minute) once/day

Automatic control function

Temperature controlling Calendar schedule controlling Power failure/recovery controlling Demand monitoring controlling

The energy supply company remotely visualizes data from Japan. AEON MALL also can check the screens on the web, allowing it to grasp the energy consumption of the mall. The energy supply company is planned to remotely manage, give advice on improvement and so on via this system.

6. Post Study Plan toward Project Realization

The configuration of the energy system has almost assumed by the outline design. But, the detail design is

AEON Mall Delta Mas

Facility linking LAN (BACnet/IP)

Lighting

More Save CloudDMZ

Central monitoring facility

BAS (Building Automation System)

CGS

Internet

（VPN）

Heat

source

PV

Monitoring Controlling

Simple

visualization

RS panel

Air-

conditioning

RS panel RS panel

Power generation facilities

Information linking LAN

Local operator

Central monitoring terminal

CSV

FW FW

Japanese

manager

・ Energy visualization (past)

・Energy-save analysis

・JCM report generation

・Visualization to serve the

Japanese owner

Performance

DBAnalysis

DB

CSV

Cloud BEMS

Collection at one-day

interval （SFTP)

Collection at 5-minute

interval (FTP)

Internet

・Visualizing energy (real time)

・Monitoring

Cloud BEMS

・Monitoring

・Controlling

・Simple

visualization

Indonesia

CSV output

Scope of JCM

Japan

Gas

Consumption

Electricity

Production

RT production

of Chiller


to be elaborated, while considering the result of the basic design of the mall overall expected to develop. The number of years for recovering the investment on the energy system is 5.7 years when facilities support (40%) is used. On the other hand, it is 9.5 years without the support. The adoption of the facilities support is a prerequisite for introducing the system. The whole designing of the mall will be started as soon as the headquarters of AEON MALL approves of the investment. We continue to study, aiming for applying for the facilities support program 2017.

Documents

Introduction of co-generation and solar power generation ...gec.jp/jcm/en/wp-content/uploads/2017/04/2015FS205_sum_en.pdf · JCM Feasibility Study (FS) 2015 – Final Report JCM Feasibility