Power generation and energy - Electricity Issues in Indonesia

power generation

& energy electricity issues in

Indonesia

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 PLN’s 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)

1

2

3

4

Macro Economic PerspectiveFacts of Indonesia’s Economic Situation

Indonesia’s Energy OutlookEnergy current Trends and Challenge

Power Generation issuesFast Track Program, Energy Mix, & Environment-Efficiency

How technology solve Eletricity’s IssueDeal with Capacity & Efficiency matters

Macro Economic’s PerspectiveFacts of Indonesia’s Economic Situations

Images taken from http://hqwide.com/

#Jakarta View #Wisma46

#BNITower

comes to your mind

Indonesia?Wh

at when you think of

Images taken from http:// globe-walls .com/

#HelloJakarta #Monas

#Istiqlalmosque

Images taken from http://listofimages/

Biggest Countryi n S o u t h E a s t A s i a

1 7 . 0 0 0 i s l a n d s3 . 1 m i l l i o n s q . k m o f s e a1 . 9 m i l l i o n s q . k m o f l a n d2 4 7 m i l l i o n i n h a b i t a n t s ( 2 0 1 2 )

#RajaAmpat #Beach

#BeautifulIndonesia

Images taken from http://wallpapersus

Biggest Economyi n S o u t h E a s t A s i a

G D P $ 8 7 8 b i l l i o n ( 2 0 1 2 )

G D P g r o w t h 6 , 2 % ( 2 0 1 2 )

I n f l a t i o n 4 , 3 % ( 2 0 1 2 )

#Jakarta@Night #Pancoran

#Patung Dirgantara

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

6,7

8

7,8

6

8,5

6

9,3

3

10

,48

12

,48

14

,82

17

,29 21

,36

23

,88

27

,03 30

,66 33

,53 37

,54

GDP

Source : BPS

Capita( m i l l i o n r u p i a h )

GDP

Source : BPS

Consumption

Government

Investment

Stat Discrepancy

X - M -2 %

5 %

32 %

9 %

54 %

o f 2 0 1 3

The BIG growth of Indonesia’s GDP was

driven primarily by domestic consumption“

Emerging middle class in

Indonesia

Middle- & High- class inIndonesia has rose 5times higher in the last25 years

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

Indonesia’s middle-class

proportion:

Yellow: $ 2-4/ day

Source : BI (2013)

Indonesia’s Energy OutlookEnergy Current Trends & Challenge

Images taken from http://wallsave.com/

Primary

Source : BP Statistical Review of World Energy 2011 & World Economic Outlook Database April 2011, IMF

in Some Country

Intensity

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

Energy Consumption

Capita( B O E / C a p i t a )

3,4

6

Source : BPS

3,3

4

2,9

8

2,5

8

2,5

6

2,4

3

2,4

7

2,4

8

2,4

1

2,2

7

2,3

2

2,2

8

11 11 12 13 15

17 18 21

23 25

27 28

34 36 37 36

40 42 44

46 48

46

51 55

31 33 34

36 39

41 44

47 50

55

60

65

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

Business Industry Household

Electricity

Consumption(in TWh)

Source : EMRPLN divided its customer into 5 segments: (1) Business, (2) Industry, (3) Household, (4) Social, (5) Government

Images taken from http://globeimages.net/

#JakartaView #BunderanHI

#MonumenSelamatDatang

Since 2007Household has outreach the electricity

consumption among other PLN’s customer segments

Energy demandhas 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/

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

Electrification Ratio( p e r c e n t )

73 76

67

66

65

63

62

57

43

28

16

8

Source : EMR

Highest : Jakarta (99,99%)Lowest : Papua (35,89%)

Electricity is heaviliy subsidisedand currently customers pay forelectricity at far below marketprice.

Reliance on Subsidies

Images taken from natgeo

Their estimated cost to government in 2013 is Rp 284 trillion and increasing to Rp 328,7 in 2014 (state budget plan).

subsidies have created a massive burden on the state budget.

Fuel &

Images taken from http:// 3.bp.blogspot.com/

Electricity

Source : Ministry of Finance

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

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

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

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

Oil Coal Gas Hydropower Geothermal Biofuel

Primary Energy SupplyExclude Biomass

(in percent)

Source :CDI-EMR

Driven by three main things:

1. Electrification programTo support government program to accelerate electrification ratio

2. Economic growthTo support manufacturing and service companies to produce products and services

3. Captive taking overMeet large consumer demand, to take over captive and to meet large customer demand

Demand of electricity is expected to grow fast

Images taken from http://touristrack.com/

Power Generation IssuesFast Track Program, Energy Mix, & Environment-Efficiency

#LabuanCFSPP

#FTP-1 #2x300MW

PLN P3B as “System Owner”and “Market Operator”

DistributionPower Generation (PLN or IPP)P3B as Transmission Provider

Primary Energy

Power Generation

Transmisi DistributionEnd

Customer

Availability of Primary Energy: quality, quantity,time, cost

Availability: reliable, safe, efficient, quality

Availability: reliable, safe, efficient, quality;Economic

optimisation;

Availability: reliable, safe, efficient, Sufficiency &

quality of supply

Services: simple, easy, quick, quality;

StandardService

StandardService

StandardService

StandardService

Standard of Public

Service

Electricity Supply Chain

To meet Indonesia’s growing demand

Issue#1

#RembangCFSPP #FTP-1

#SubcriticalPulverized

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

FTP Phase 1 :

42 Coal-Fired Steam Power Plants of PLN’s 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 PLN’s Project • 72 power plants of Partnership Project

#TjAwar-awarCFSPP

#CoalHandling #StackerReclaimer

Issue#1

Chinese’s Power Plants (FTP-1)

are cheaper than Japanese’s 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 thecompany's internal cash flowsand meet the 9% of electricitydemand growth.

It has also minimize the Fuelcontribution in PLN Fuel Mixfrom 22% in 2009 to 12% in2013.

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

Issue#1

2%

58%18%

6%

16%

2019

Fuel Coal Gas Hydro Geo

36%

35%

17%

9%

3%

2008

Fuel Coal Gas Hydro Geo

Source :RUPTL 2010-2019

Fuel Mix

Issue#2

1% replacement of Fuel into Coal will generate financial efficiency up to Rp 1,74 T (in 2012) .

Indonesia’s electricity is still rely on coal-based power plants

Contribute approximately 58% of the total electricity generated

Issue#2

Images taken from http:// ncealliance.com/

Environment

Efficiency

Issue#3

Reciprocal Relationship in

coal power plant

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

Clean Coal Technology

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

Issue#3

For new power plants

Images taken from http:// saistrip2010.webatu.com /

Could consider this following options:

#IGCC #CleanCoalTech

Supercritical & Ultra-supercritical (USC) pulverized coal technology

Circulating fluidized bed combustion (CFB)

Integrated gasification combined cycle (IGCC)

Issue#3

For existing power plants

Could initiate rehabilitation & recondition, to:

Improve efficiency

Decrease hidden capacity

#MuaraKarang #CCPP

Issue#3

How Technology Solve Electricity IssuesDeal with Capacity and Efficiency matters

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

Efficiency(%)

39

37

35

33

1 2 3 4 5 6 7 8

Lifetime(Years)

Annual Inspection

SI SI SI SIME SE MERehabilitationRecondition

Restore

New Technology

Improve

100

75

50

25

Capacity

(%)

Efficiency & capacity degradation

How to deal with Capacity & Efficiency matters?

Capacity:• Coal Mixing• Coal Drying

Efficiency:• Tiny-oil Burner

• Heat Balance modelling

#PalabuanRatu #Construction

#FastTrackProgram

Coal mixing

the process of blending two different typesof coal (low & medium range coal) to obtaina desired efficiency/ load profile.

Heating valueLow Range Coal = + 4.200 kCal/kgMedium Range Coal = + 4.900 kal/kg

Coal layering

The process of placing the med range coalat specific boiler burner layer to obtain adesired efficiency/ load profile.

Coal dryingThe 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 /

Tiny-oil burner

A modified boiler burner to obtainless fuel oil consumption.

Could reduce the fuel consumptionup to 85% (@Labuan CFSPP).

Original

burner

Tiny burner

Heat balance

modellingImplemented through a Gatecycle, heat balance modelling discover all

of plant’s 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

Heat Rate Comparison in 2013( i n k C a l / k W h ) )

Tech challenge

Challenge#1

TJB (Non-FTP)

IMY(FTP)

2.732

2.403

Turbine

efficiency

improvement

There has been no significant breakthrough on turbine efficiency improvement

Challenge#2

Images taken from http://deltatest.de /

Heat Balance

Modelling

Challenge on:• Accuration• HR Competency• Alternative model

Challenge#3

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

Source :World Bank TeamPBR (Performance Based Regulation) is given by the Government to determine PLN Allowed Revenue.

Challenge#4

EpilogueEfficiency 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 : [email protected] : GM_UPJB