Power generation and energy - Electricity Issues in Indonesia

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This is a presentation that I made for my boss since he become a keynote speaker in Thermofluid IV National Seminar @ Gajah Mada University. The presentation give a brief discuss about Indonesia’s latest issues on Macro Economic Perspective and Energy issues. It also discuss how technology could take part on solving electricity issues.

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Power generation and energy - Electricity Issues in Indonesia

  1. 1. 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
  2. 2. 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)
  3. 3. 1 2 3 4 Macro Economic Perspective Facts of Indonesia’s Economic Situation Indonesia’s Energy Outlook Energy current Trends and Challenge Power Generation issues Fast Track Program, Energy Mix, & Environment-Efficiency How technology solve Eletricity’s Issue Deal with Capacity & Efficiency matters
  4. 4. Macro Economic’s Perspective Facts of Indonesia’s Economic Situations Images taken from http://hqwide.com/ #Jakarta View #Wisma46 #BNITower
  5. 5. comes to your mind Indonesia? What when you think of Images taken from http:// globe-walls .com/ #HelloJakarta #Monas #Istiqlalmosque
  6. 6. Images taken from http://listofimages/ Biggest Country in S ou th East A sia 1 7 .0 0 0 islan d s 3 .1 million sq . km of sea 1 .9 million sq . km of lan d 2 4 7 million in h ab itants ( 2 0 1 2 ) #RajaAmpat #Beach #BeautifulIndonesia
  7. 7. Images taken from http://wallpapersus Biggest Economy in S ou th East A sia GDP $ 8 7 8 b illion ( 2 0 1 2 ) GDP g rowth 6 ,2 % ( 2 0 1 2 ) Inflation 4 ,3 % ( 2 0 1 2 ) #Jakarta@Night #Pancoran #Patung Dirgantara
  8. 8. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013** 6,78 7,86 8,56 9,33 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 )
  9. 9. GDP Source : BPS Consumption Government Investment Stat Discrepancy X - M -2 % 5 % 32 % 9 % 54 % of 2013 The BIG growth of Indonesia’s GDP was driven primarily by domestic consumption “
  10. 10. 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/
  11. 11. Indonesia’s middle-class proportion: Yellow: $ 2-4/ day Source : BI (2013)
  12. 12. Indonesia’s Energy Outlook Energy Current Trends & Challenge Images taken from http://wallsave.com/
  13. 13. Primary Source : BP Statistical Review of World Energy 2011 & World Economic Outlook Database April 2011, IMF inSomeCountry Intensity
  14. 14. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Energy Consumption Capita ( B O E / C a p i t a ) 3,46 Source : BPS 3,34 2,98 2,58 2,56 2,43 2,47 2,48 2,41 2,27 2,32 2,28
  15. 15. 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
  16. 16. Images taken from http://globeimages.net/ #JakartaView #BunderanHI #MonumenSelamatDatang Since 2007 Household has outreach the electricity consumption among other PLN’s customer segments
  17. 17. Energy demand has been increasing faster than economic development and population growth Images taken from natgeo society
  18. 18. Electricity Shortage More than 70-80 million people lack access to electricity Images taken from http://phototony.com/
  19. 19. 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%)
  20. 20. Electricity is heaviliy subsidised and currently customers pay for electricity at far below market price. Reliance on Subsidies Images taken from natgeo
  21. 21. 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
  22. 22. 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 Supply Exclude Biomass (in percent) Source :CDI-EMR
  23. 23. 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 Demand of electricity is expected to grow fast Images taken from http://touristrack.com/
  24. 24. Power Generation Issues Fast Track Program, Energy Mix, & Environment-Efficiency #LabuanCFSPP #FTP-1 #2x300MW
  25. 25. PLN P3B as “System Owner” and “Market Operator” DistributionPower Generation (PLN or IPP) P3B as Transmission Provider Primary Energy Power Generation Transmisi Distribution End 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; Standard Service Standard Service Standard Service Standard Service Standard of Public Service Electricity Supply Chain
  26. 26. To meet Indonesia’s growing demand Issue#1 #RembangCFSPP #FTP-1 #SubcriticalPulverized PLN is mandated to implement Fast Track Program (FTP) for capacity expansion
  27. 27. 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
  28. 28. 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
  29. 29. 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#1
  30. 30. 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) .
  31. 31. 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/
  32. 32. Environment Efficiency Issue#3 Reciprocal Relationship in coal power plant
  33. 33. 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
  34. 34. 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
  35. 35. For existing power plants Could initiate rehabilitation & recondition, to: Improve efficiency Decrease hidden capacity #MuaraKarang #CCPP Issue#3
  36. 36. How Technology Solve Electricity Issues Deal with Capacity and Efficiency matters Images taken from http:// www.iorise.com /
  37. 37. Efficiency (%) 39 37 35 33 1 2 3 4 5 6 7 8 Lifetime (Years) Annual Inspection SI SI SI SIME SE ME Rehabilitation Recondition Restore New Technology Improve 100 75 50 25 Capacity (%) Efficiency & capacity degradation
  38. 38. How to deal with Capacity & Efficiency matters? Capacity: • Coal Mixing • Coal Drying Efficiency: • Tiny-oil Burner • Heat Balance modelling #PalabuanRatu #Construction #FastTrackProgram
  39. 39. Coal mixing the process of blending two different types of coal (low & medium range coal) to obtain a desired efficiency/ load profile. Heating value Low Range Coal = + 4.200 kCal/kg Medium Range Coal = + 4.900 kal/kg Coal layering The process of placing the med range coal at specific boiler burner layer to obtain a desired efficiency/ load profile.
  40. 40. 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 /
  41. 41. Tiny-oil burner A modified boiler burner to obtain less fuel oil consumption. Could reduce the fuel consumption up to 85% (@Labuan CFSPP). Original burner Tiny burner
  42. 42. Heat balance modelling Implemented 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 /
  43. 43. PLN Generation Challenges
  44. 44. 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
  45. 45. Turbine efficiency improvement There has been no significant breakthrough on turbine efficiency improvement Challenge#2 Images taken from http://deltatest.de /
  46. 46. Heat Balance Modelling Challenge on: • Accuration • HR Competency • Alternative model Challenge#3 Images taken from http:// img0.mxstatic.com /
  47. 47. Source :World Bank TeamPBR (Performance Based Regulation) is given by the Government to determine PLN Allowed Revenue. Challenge#4
  48. 48. 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
  49. 49. An institution to bridge the interest between business (power generation) and universities has not yet established. Images taken from http://austinareaphoto.com /
  50. 50. Thankyou Presented by: Iwan Agung Firstantara Mail : iwanagungf@gmail.com Twitter : GM_UPJB

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