Mixed Achievements on Renewable Energy Projects

JAKARTA (TheInsiderStories) – The Ministry of Energy and Mineral Resources (MEMR) reported the update on the renewable energy and energy conversion program, that showing a mixed achievements.

Geothermal power plants (PLTU) projects run on target, as well as solar power plant (PLTS) and mini hydro power plant (PLTM). While bio energy power plants and bio fuel power plants make their poor achievements.

Geothermal power plants reached 1,698.5 megawatts (MW) in the second quarter (Q2) of this year, on target. In 2016, geothermal power plants had 1,643.5 MW capacity. For 2017, geothermal power plants is targeted to produce 1,858.5 MW, with additional installed capacity coming from PLTP Ulubelu unit 4 (55 MW).

Solar power plants also reached 12.45 MW capacity in Q2 2017, on target. In 2016 this plants achieved 9.43 MW capacity. For 2017, its capacity is targeted for 124.28 MW.

While bio energy power plant is reported to reach 1,799 MW in Q2, lower than target of 1,825 MW. In 2016, bio energy power plant reached 1,767.1 MW capacity. It targets to achieve 1,881 MW this year. Noting that, most bio energy power plant are off-grid.

And bio fuel power plant is reported to reach 1.48 BBN (million kiloliters) in Q2, also lower that target of 2.22 BBN. In 2016, this power plant reached 3.65 BBN capacity, targeting 4.60 BBN this year. The mandatory 20% bio fuel added to fuel since 2016.

The challenge for bio fuel is lower world crude oil prices, affecting the high price difference between bio fuel and fuel. The subsidy of bio fuel has been implemented.

The renewable energy and energy conversion contributed Rp26o billion to the state revenue in Q2, lower than target Rp32o billion. In 2016, this sector contributed Rp930 billion, and targeting Rp650 billion contribution in 2017.

Investment of this sector reached Rp9.01 trillion in Q2, higher than target of Rp5.77 trillion. In 2016, the investment of renewable energy and energy conversion totaled Rp16.58 trillion.

The investment for this year is targeted for Rp19.52 trillion. The incentives are needed for attracting investment in this sector.

Per July 2017, mini hydro power plant consist of three units with investment cost of Rp454.32 billion. That said 3 units are PLTM Kandibata-1, North Sumatera (9.7 MW) with investment cost of Rp245.65 billion (target commercial operation date or COD May 2019), PLTM Wae Lega in East Nusa Tenggara (1.75 MW) costing Rp41.47 billion (target COD June 2020), and PLTM Babatan in South Sumatera (4.92 MW) at cost of Rp167.20 billion (target COD Dec 2019).

There are six PLTS projects (45 MW) under process to set electricity prices under approval of ESDM Minister. HoA was made in 29 March 2017.

Total capacity of PLTS reached 359 MW and wind-turbine power plant totaled 820 MW. The combined capacity is 1,179 MW. Target of COD this year is for 109.3 MW with investment cost of Rp2.11 trillion.

State utility firm PT Perusahaan Listrik Negara (PLN) has opened registration for pre-qualification of tender for PLTS capacity quota in Sumatera region. For PLTM, PLN has not formulated its PJBL concept (the electricity purchase agreement (PJBL). The tender for PLTB capacity is scheduled for this year.

For geothermal, after producing 1,643.5 MW capacity in 2016, it is targeted to produce capacity of 1,858.5 MW this year and 2,023.5 MW capacity next year (surpassing Philippine to become the second largest in the world), and 2,243.5 MW capacity in 2019. By 2021, planned geothermal capacity is 3,559.5 MW, with additional 450 MW, to surpassing United States to become the first largest.

PLN now focuses on developing the environment-friendly power plants, targeting to achieve 23 percent contribution from the renewable energy by 2025. It targets to develop the renewable energy power plant with capacity of 22,000 MW by 2025.

The geothermal power plant (PLTP) is targeted to contribute 6200 MW capacity, representing 40 percent of the installed capacity of 1500 MW. PLN has operated some some PLTP with combined capacity of 22,000 by 2025. The geothermal power plants is targeted to contribute 6200 MW capacity.

In late March 2017, PLN signed heads of agreement (HoA) with PT Infrastruktur Terbarukan Adhiguna for the development of Pringgabaya solar power in Lombok, West Nusa Tenggara with power generation capacity of 5 MW.

At the same time, PT Infrastruktur Terbarukan Cemerlang signed HoA for Sengkol solar power in Lombok (5 MW), PT Infrastruktur Terbarukan Buana for Selong power in Lombok (5 MW), and PT Infrastruktur Terbarukan Lestari for Likupang solar power in Minahasa, North Sulawesi (15 MW).

Meanwhile, Indonesia and Lithuania on May 17 signed agreement for developing renewable energy and energy conversion. Both parties signed the memorandum of understanding (MoU) in President Palace, represented by Minister for Energy and Mineral Resources Ignatius Jonan and President of Lithuania Dalia Grybauskaite, witnessed by President Joko Widodo.

Lithuania has its success on developing biomass, making its market share more competitive. Lithuania implements efficient and transparent biomass exchange system, boosting the competitiveness and eliminating the prices differential.

The average prices of biomass in Lithuania has dropped by 40 percent to 113 euro per ton in August 2016, from 193 euro in August 2012. While Indonesia targets its renewable energy to reach 23% market share by 2025.

It is planned that by the end of 2017 it will increase to 1,858.5 MW and 2018 to 2,023.5 MW. So that in 2018, PLTP installed capacity of Indonesia exceeds the Philippines which is currently at 1,870 MW, and became the second largest after the United States which currently amounted to 3,450 MW.

This was conveyed by the Director of Geothermal, Yunus Saefulhak that currently the resources of geothermal (resources) of 11,073 MW while geothermal reserves of 17,506 MW. So the total utilization of geothermal current is 9,3 percent or 1,698.5 MW from total geothermal reserve. The installed capacity of PLTP consists of 12 PLTPs located in 10 Geothermal Working Areas (WKP).

For the year 2017, there are four PLTP that has and will operate, namely PLTP Ulubelu unit 4 (55 MW), PLTP Karaha Unit 1 (30 MW)
PLTP Sorik Marapi (Modular, 20 MW), PLTP Sarulla Unit 2 (110 MW)
The PLTP Ulubelu unit 4 has been operating on April 25, while the other three PLTP are planned to operate by the end of 2017. (MS)