POLICY AND PROGRAM ON COAL FIRE POWER … 3...MINISTRY OF ENERGY & MINERAL RESOURCES Ministry of Energy & Mineral Resources POLICY AND PROGRAM ON COAL FIRE POWER PLANT CLEAN COAL DAY

MINISTRY OF ENERGY & MINERAL RESOURCES

Ministry of Energy & Mineral Resources

POLICY AND PROGRAM ON COAL FIRE POWER PLANT

CLEAN COAL DAY INTERNATIONAL SYMPOSIUM 2015, JAPAN

Tokyo, September 8th – 9th , 2015


OUTLINE

1. Government Policy2. Current Condition3. Future Plan4. Clean Coal Technology Roadmap


GOVERNMENT POLICY ON POWER SECTOR(Based on Law No. 30 Year 2009 on Electricity)

Objective of Electricity Development

To ensure the availability of electricity in sufficient quantity, good quality andreasonable price in order to improve the welfare of the people.

Utilization of Primary Energy Source Primary energy sources from domestic and overseas shall be used optimally

in accordance with National Energy Policy to ensure a sustainable supply ofelectricity.

Utilization of domestic energy sources will be prioritized for national interests.

MINISTRY OF ENERGY & MINERAL RESOURCES 4

CURRENT CONDITION


AT PERIODS 2015-2019 ELECTRICITY DEVELOPMENT TO FULFILL THE ELECTRICITY GROWTH 8.7% AND ELECTRIFICATION RATIO AROUND 97.4% AT 2019 1)

Currently the installed capacity is only able to fulfill the electricity demand by 86.39%, lower than Singapura (100,0%), Brunei (99,7%), Thailand (99,3%), Malaysia (99,0%), Vietnam(98,0%)

In the next 5 years, demand for electricity will grow by an average of 8.7% per year, with a target of electrification ratio amounted to 97.4% at year end 2019

Others factor potentially to be obstacle on the 35 GW program:1. The changes in assumptions 2. The realization of electricity demand

Electrificat ion Target 2)

Electrificat ion Ratio and Capacity

To fulfill electricity growth demand

and electrification ratio target,

additional capacity around 35 GW is needed ( except 7.4 GW on going project) period

2015-2019

35.000 GW

PROGRAM

87.35%90.15%

92.75%95.15%

97.35%

80

85

90

95

100

2015 2016 2017 2018 2019

Current Condition Unit Total

Electri-ficat ion

Ratio% 86,39

Installed Capacity MW 53.535


Aceh92,31%

Sumut91,03%

Sumbar80,14%

Riau 84,54%

Sumsel76,38%

Bengkulu83,47%

Babel95,53%

Lampung81,27%

Jakarta99,61%

Banten92,93%

Jabar86,04%

Jateng88,04%

Jambi80,70%

DIY82,26%

Jatim83,55%

Bali85,17%

NTT58,91%

Kalbar79,77%

Kalsel83,75%

Kaltim91,71%

Sulut85,53%

Sulteng75,58%

Sulsel85,05%

Malut90,52%

Maluku82,22%

Papua43,46%

Category :

> 70 %

50 - 70 %

< 50 %

Sulbar74,11%

Kepri74,06%

Sultra66,78%

Papua Barat77,81%

Kalteng67,23%

NTB68,05%

Gorontalo74,65%

REALIZATION TARGET ACCORDING TO DRAFT RUKN2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

67.15% 72.95% 76.56% 80.51% 84.35% 87.35% 90.15% 92.75% 95.15% 97.35%

Kaltara69,64%

ELECTRIFICATION RATIO 2014

MINISTRY OF ENERGY & MINERAL RESOURCES7

ENERGY MIX OF POWER GENERATION 2009 – 2015

2009 2010 2011 2012 2013 2014 2015

APBN RAPBN-P

Oil*) 25% 22% 22,95% 14,97% 12,54% 11,49% 8,53% 8,85%

Gas 25% 25% 21,00% 23,41% 23,56% 24,07% 23,21% 23,15%

Coal 39% 38% 44,06% 50,27% 51,58% 52,87% 57,33% 57,03%

Hydro 8% 12% 6,80% 6,39% 7,73% 6,70% 6,13% 6,51%

Geothermal 3% 3% 5,13% 4,85% 4,42% 4,44% 4,74% 4,32%

Renewable, and others 0% 0% 0,07% 0,11% 0,16% 0,43% 0,06% 0,14%*) 20% Including mandatory biodiesel

% Electricity Production , Gwh


FUTURE PLAN


Target 2025

Coal, 52.87%Gas, 24.07%

Oil, 11.49%

Hydro, 6.70%Geothermal,

4.40%Other NRE,

0.43%

Realization 2014

Coal, 30%

Gas, 22%NRE, 23%

Oil, 25%

Coal, 50%

Gas, 24%

NRE, 25%

Oil, 1%

Target 2025

Realization 2013

FINAL ENERGY MIX(National Energy Policy, Govt. Reg No.79/2014)

ENERGY MIX OF POWER GENERATION(General Planning of National Electricity – RUKN Draft 2015-2034)

ENERGY MIX

Coal, 30%

Gas, 23%

Oil, 41%

NRE, 6%


Source: RUPTL PLN 2015-2024

SUMATERA11,6%

31Twh

83Twh

JAWA - BALI7,8%

165Twh

324Twh

KALIMANTAN10,4%

SULAW ESI12,4%

MALUKU10,3%

PAPUA9,4%

INDONESIA TIMUR11,1%

INDONESIA8,7%

2015 2024

219Twh

464Twh

NUSA TENGGARA9,6%

23Twh

57Twh

Tahun 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Demand (TWh) 202 219 239 260 283 307 332 361 392 427 464

Electrification Ratio(PLN & Non PLN) 84.35 87.35 90,15 92,75 95,15 97,35 99,35 99,99 99,99 99,99 99,99

Electrification Ratio (PLN) 84.1 87.5 91.0 93.4 95.4 97.2 98.3 98.8 99.1 99.2 99.4

PROJECTION OF ELECTRICITY DEMAND 2015-2024

10


PROJECTION OF ADDITIONAL ELECTRICITY DEMAND 2015-2034

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034Additional of Non PLN System 2 4 6 8 11 14 17 20 23 27 32 34 37 39 41 44 46 49 52 55Additional of IPP & Excess Power 12 28 45 64 86 110 137 166 197 233 272 299 326 354 382 412 443 476 511 547Additional of PLN 4 9 15 21 29 37 46 55 66 78 91 100 109 118 127 137 148 159 170 182Additional of PLN System 16 37 60 86 115 147 182 221 263 310 363 398 435 472 510 550 591 635 681 730Total Additional (based on 2014) 18 41 66 94 126 161 199 241 287 338 395 433 471 511 551 593 637 684 733 784

-

100

200

300

400

500

600

700

800

TWh

PPU &Non-oil Captive Power

IPP &EXCESSPOWER

PLN

PLNBusinessArea

75%

25%

90%

MINISTRY OF ENERGY & MINERAL RESOURCES 12

ECONOMIC ACTIVITIES OF 35,000 MW PROGRAM*

732 transmissions(75.000 set tower)

1.375 units Substation

301.300 km aluminum conductor2.600 set transformer 3,5 million tons steel

291 power plants

LaborDirect : 650 Thousand

In Direct : 3 Million

Local Content~40% of Investment(~29,2 Million USD)

Investment : 72.942 Million USD**

* Prediction** not include the funding requirements for land, Interest During Construction (IDC) and taxes


35.500 MW + 7.400 MW ELECTRICITY DEVELOPMENT PROGRAM (2015 – 2019)

CFPP, 25,839

GeoPP, 1,160

CCPP, 9,165

GTPP/GEPP, 4,288

MHEPP, 737 HEPP, 634 PS, 1,040

Others, 81

3,793 4,213

6,379

9,238

19,319

2015 2016 2017 2018 2019

PLT Lain

PS

PLTA

PLTM

PLTG/MG

PLTGU

PLTP

PLTU

TOTAL

GeoPP

CCPP

GTPP/GEPP

MHEPP

HEPP

Plans COD per Year Additional Plans Capacity per Plant Type

Total additional capacity 2015 up to 2019 is about 42,9 GW :−7,4 GW on construction progress;−35,5 GW planning.

Others

PS

CFPP


DISTRIBUTION OF GENERATION, TRANSMISSION, SUBSTATION, AND FUNDING NEEDS

Jawa-Bali I Million USD

14.090 MW 33 Gen* 13.313

6.865 KMS 234 Trans 5.942 41.841 MVA 420 Subs 4.502

Jawa-Bali II Million USD

9.773 MW 15 Gen* 11.297

4.320 KMS 115 Trans 2.58824.242 MVA 252 Subs 1.754

Kalimantan Million USD

2.852 MW 39 Gen 5.007 7.883 KMS 68 Trans 3.881 3.910 MVA 115 Subs 520

Maluku & Papua Million USD

739 MW 43 Gen 1.276 1.017 KMS 14 Trans 504 770 MVA 25 Subs 103

Sulawesi & Nusa Tenggara

Million USD

4.159 MW 85 Gen 6.443 7.207 KMS 90 Trans 3.691 5.620 MVA 165 Subs 693

*Including Jawa Bali distributed Minihydro Generation

Sumatera Million USD

11.327 MW 77 Gen 14.63119.305 KMS 210 Trans 10.59632.406 MVA 398 Subs 3.152


PROGRESS OF ON GOING PROJECTS (7,000 MW)

Progress based on location

Location0-25% 25-50% 50-75% 75-100%

Total MW

TotalProjectsCap.

(MW)Sum ofProjects

Cap.(MW)

Sum ofProjects

Cap.(MW)

Sum ofProjects

Cap(MW)

Sum ofProjects

Sumatera 660 4 431 3 200 1 1.295 9 2.586 17Jawa-Bali 65 3 30 1 643 2 2.234 6 2.972 12Kalimantan 66 3 70 3 324 6 521 6 981 18Sulawesi &Nusa Tenggara 481 10 80 2 85 6 108 8 754 26

Maluku & Papua 28 1 36 2 54 3 118 6Total 1.272 20 639 10 1.288 17 4.212 32 7.411 79

PLN4.193

50 Projects

57%

IPP3.218

29 Projects

43%

Progress based on developer

Owner0-25% 25-50% 50-75% 75-100% Total

MWTotal

ProjectsCap.(MW)

Sum ofProjects

Cap.(MW)

Sum ofProjects

Cap.(MW)

Sum ofProjects

Cap.(MW)

Sum ofProjects

PLN 835 10 172 4 615 14 2.571 22 4.193 50

IPP 437 10 467 6 673 3 1.641 10 3.218 29

Total 1.272 20 639 10 1.288 17 4.212 32 7.411 79

On going projects (7,000 MW) consist of FTP 1, FTP 2, and regular projects. Grouping reflects progress of the projects

Developer

Total projects are estimated COD on 2015: 23 projects (3,481 MW)


PROGRESS OF ON GOING PROJECTS (35.000 MW)

Progress based on Location

LocationPlan Procurement Construction TOTAL

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

Sumatera 909 17 6.370 36 1.462 6 8.741 59Jawa-Bali 1.150 2 17.494 24 2.247 11 20.891 37

Kalimantan 335 6 1.036 13 500 3 1.871 22Sulawesi & Nusa

Tenggara 751 14 2.242 35 413 8 3.406 57

Maluku & Papua 45 5 470 26 105 6 620 37

Total 3.190 44 27.612 134 4.727 34 35.529 212


OwnerPlan Procurement Construction TOTAL

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

Capacity(MW)

Sum ofProjects

PLN 2.906 29 6.909 68 130 5 9.945 102IPP 284 15 20.703 66 4.597 29 25.584 110Total 3.190 44 27.612 134 4.727 34 35.529 212PLN

9.945 MW102 Projects

28%

IPP25.584 MW110 Projects

72%

Developer(MW)

Program 35.000 MW Including Minihydro and Microhydro Power Plant.Until 2015, planned for signed EPC contract or Power Purchase Agreement (PPA)for 48 project equivalent 21.589 MW

Source: PLN, June 2015


PROGRESS OF TRANSMISSIONS PROJECT 46.597 KMC



Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

Sumatera 10.612 123 1.115 11 7.578 76 19.305 210Jawa-Bali 6.831 219 944 39 3.410 91 11.185 349

Kalimantan 3.242 32 1.308 12 3.333 24 7.883 68Sulawesi & Nusa

Tenggara 3.757 51 535 7 2.915 32 7.207 90

Maluku & Papua 713 9 0 0 304 6 1.017 15

Total 25.155 434 3.902 69 17.540 229 46.597 732



Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

Capacity(kmc)

Sum ofProjects

PLN 22.564 402 3.838 67 16.882 219 43.284 688IPP 2.591 32 64 2 658 10 3.313 44

Total 25.155 434 3.902 69 17.540 229 46.597 732

PLN43.284 kmc688 Projects

93%

IPP3.313 kmc44 Projects

7%

Developer(kmc)



PROGRESS OF SUBSTATION PROJECT 108.789 MVA



Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

Sumatera 18.770 222 2.936 49 10.700 127 32.406 398Jawa-Bali 42.892 386 6.697 95 16.494 191 66.083 672Kalimantan 2.870 83 300 6 740 26 3.910 115Sulawesi & Nusa Tenggara 4.150 110 630 18 840 37 5.620 165

Maluku & Papua 670 20 0 0 100 5 770 25

Total 69.352 821 10.563 168 28.874 386 108.789 1.375



Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

Capacity(MVA)

Sum ofProjects

PLN 64.492 805 10.563 167 28.784 382 103.839 1.354IPP 4.860 16 0 1 90 4 4.950 21Total 69.352 821 10.563 168 28.874 386 108.789 1.375

PLN103.839 MVA

1.354 Projects95%

IPP4.950 MVA21 Projects

5%

Developer(MVA)



19

19

CO2 EMISSION REDUCTION – CLEAN COAL TECHNOLOGY


BACKGROUND

To meet the rapidly growing demand and address supplyshortage, coal-based generation provides a quick andlow-cost solution in Indonesia.

Coal-based generation contributes to increased CO2

emissions. GoI is keen on reducing greenhouse gas emissions while

keeping expanding power production and enhancingenergy security.

CCT offers a potential solution to GoI’s dual goal withrespect to power sector development/energy security andenvironmental sustainability

2


Indonesia power sector CO2 emissions is projected to double in the period of 2015-24 primarily due to growth in coal-fired generation

Indonesia Power Sector CO2 Emissions (2015-2024)

201 million tCO2(2015)

Source:RUPTL 2015-20243

383 million tCO2(2024)

CO2 EMISSION


Rational for USC/IGCC introduction in Indonesia

Alignment with Indonesia’s Policy

Economic validity

Is it possible to use low rank coal (LRC) ?→ Yes, LRC can be utilized Does it contribute to GHG emission reduction ?→ Yes, GHG emission amount will be reduced

Is USC & IGCC readily available ?→ USC: readily available, IGCC: available in 2020 When can it be introduced in Indonesia?→ USC: 2017, IGCC: 2025

Is it economically viable ?→ Yes, Generation cost will be lower than Sub-c or SC

Technical availability

CLEAN COAL TECHNOLOGY


Target for introduction of USC and IGCC in IndonesiaUSC should be introduced for next new coal fired power plant project (2017) IGCC will be introduced around 2025, considering the development situation in

the world

CCT Technology for Coal Fired Power Plants

Matured technology to achieve lowelectricity costs & low GHGemissions

• Proven and already commercialized technology• Introduced all around the world• Can utilize low rank coal with above average ash melting point• Economic superiority to SC• Lower GHG emission compared to SC

Promising technology to achievelow electricity cost, lower GHG emissions & LRC utilization• Technology yet to be commercialized• Will be introduced at the beginning of 2020s in commercial base in the world

• Promising technology for low rank coal with low ash melting point• Economic superiority to SC and USC • Lower GHG emission compared to SC & USC

USC IGCC*

CLEAN COAL TECHNOLOGY

*) Integrated Gasification Combined Cycle


• After assessing relevant factors (technical availability, low rank coalavailability, economic viability, technical challenges in introducing CCTand contribution to GHG emission reduction), the CCT study concludesthat the CCT technology that can be adopted by Indonesia are USC andIGCC.

• USC is commercially matured, already proven and well performed inmany countries, can use low rank coal having above average ash meltingpoint, has economic merit to SubC and SC, produces lower CO2emissions.

• IGCC is a promising technology, yet not commercially matured, can uselow rank coal with low ash melting point, its project cost is expected todrop and make it economical compared to SC and USC, lower CO2emission than SC and USC.

*) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, Interim Report, October 2011, Jakarta, JICA Study Team.

ROADMAP OF CCT IN INDONESIA *)


*) Source: The Project for Promotion of Clean Coal Technology (CCT) in Indonesia, Interim Report, October 2011, Jakarta, JICA Study Team, with modification

2011 2015 2020 2025

SC, η= 35-40%

USC, 43%

IGCC

45-48%

Central Java IPP(USC 2x1000 MW)

Indramayu #2(USC 1000 MW)

Indramayu #1(USC 1000 MW)

Cirebon(USC 1x1000 MW)

2000–3000 MW per year

IGCC 1000 MW Class

Cirebon(SC 1x660 MW)

Paiton 3(SC 1x815 MW)

ROADMAP OF CCT IN INDONESIA *)


26 PLANNING OF ULTRA SUPER CRITICAL PROJECT DEVELOPMENT (2015-2024)

No Project Location Unit Size (MW)

COD Estimation

1 CFPP Java 1 West Java 1 x 1,000 20192 CFPP Java 4 Central Java 2 x 1,000 20193 CFPP Java 5 Banten 2 x 1,000 20194 CFPP Java 6 West Java 2 x 1,000 20235 CFPP Java 7 Banten 2 x 1,000 20196 CFPP Java 8 Central Java 1 x 1,000 20187 CFPP Central Java Batang, Central Java 2 x 1,000 2019/20208 CFPP Java 12 DKI Jakarta 2 x 1,000 2022/20239 CFPP Java 13 Central Java 2 x 1,000 202410 CFPP Indramayu 4 West Java 1 x 1,000 201911 CFPP Indramayu 5 West Java 1 x 1,000 2024

Note: CFPP Java 3, 9,10, and 11 are committed Project with unit size 600 MW


FINANCING REQUIREMENT FOR CFPP DEVELOPMENT

Transmission21

Distribution15

CFPP58

Others39

Power Plant97

2015-2024

USDBillion

Total:USD 132 Billion

Transmission17

Distribution7

CFPP36

Others23

Power Plant59

USDBillion

2015-2019

Total:USD 83 Billion


www.esdm.go.id

Documents

POLICY AND PROGRAM ON COAL FIRE POWER … 3...MINISTRY OF ENERGY & MINERAL RESOURCES Ministry of Energy & Mineral Resources POLICY AND PROGRAM ON COAL FIRE POWER PLANT CLEAN COAL DAY