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ELECTRICITY FOR A BETTER LIFE INDONESIA Geothermal Power Plants in the 2nd Phase 10,000 MW Project APEC ENERGY BUSINESS FORUM 17 November 2009 OUTLINE ELECTRICITY FOR A BETTER LIFE 1 Indonesian Electricity Update 2 Geothermal under the 2nd 10,000 MW Projects 3 4 How to Accelerate GPP Development Pipe Line for GPP Development POWER DEVELOPMENT PLAN 2008 - 2018 ELECTRICITY FOR A BETTER LIFE 1. Average electricity demand growth is estimated 9.7%/year. Based on assumption of GDP 6.2%/year, with elasticity = 1.56. Electricity demand by 2018 will be 325 TWh. 2. Targeted Electricity Ratio by 2018 will be 95.5%. 3. Total New Power Plant Built will be 57,442 MW, while PLN will contributes 35,274 MW (61 %) and IPP will be 22,168 MW (39 %). 4. Requires Additional Investment at USD 55.63 billion; consists of USD 37.56 billion for Generation; USD 9.52 billion for Transmission and USD 8.55 billion for Distribution 5. New Built for Geothermal will be 5,006 MW. PLN is planned to contribute 1,015 MW (20 %) while IPP = 3,991 MW (80 %). 3 Projection of Electricity Demand Growth ELECTRICITY FOR A BETTER LIFE Energy Demand - Indonesia - Jawa-Bali - Outside Jawa-Bali Growth - Indonesia - Jawa-Bali - OutsideJawa-Bali Electrification Ratio - Indonesia - Jawa-Bali - OutsideJawa-Bali Unit 2008 2009 2010 2012 2014 2018 TWh 128.9 100.9 28.0 138.7 107.8 30.9 153.1 119.0 34.1 186.2 144.6 41.6 225.4 174.9 50.5 325.2 250.9 74.3 % 6.5 5,6 9.9 7,6 6,8 10.4 10.4 10.3 10.6 10.2 10.2 10,2 9.8 9.7 10.2 9.4 9.2 10.0 63.1 67.1 56.1 65.1 69.2 58.1 67.6 71.9 60.2 72.6 77.7 64.2 77.9 83.8 68.2 88.7 96.0 77.1 % - Outside J & B grows higher than in J & B - Growth in J & B is required to support the GDP Growth in the area (most industries located in J & B) - Targeted electrification ratio in outside J & B is at 77 % by year 2018 Projection Fuel Mix ELECTRICITY FOR A BETTER LIFE • Contribution of Renewable energy will gradually increased to replace Oil. • Contribution of coal PP is targeted to maintain capacity requirement 100% 90% 5% 19% 7% 5% 80% 7% 70% 5% 60% 21% 21% 2% 1% 1% 1% 1% 1% 1% 2% 7% 7% 6% 6% 6% 7% 7% 6% 6% 8% 9% 11% 11% 10% 11% 12% 19% 19% 19% 18% 17% 18% 17% 17% 66% 65% 64% 64% 65% 64% 64% 63% 2011 2012 2013 2014 2015 2016 2017 2018 50% 40% 62% 30% 48% 20% 10% 0% 2009 2010 COAL Source: Draft RUPTL 2009-2018 GAS GEOTHERMAL HYDRO OIL 5 Goal ELECTRICITY FOR A BETTER LIFE 1,600 Interest Fuel Mix Adjustment 1,400 1,347 Depreciation Decrease COGS 1,200 General Affairs & Cost of Goods Sold (Rp/kWh) 1,076 1,038 1,000 952 906 1,069 Administration. 998 Maintenance 931 800 IPP Purchase 600 Fuel 400 200 0 2008 2009 2010 2011 2012 2013 2014 2015 Besides to meet the targeted electrification ratio and demand growth, new pp built is also targeted to improve a better Fuel Mix to gain a lower COGS Indonesia’s Geothermal Status January 2009 ELECTRICITY FOR A BETTER LIFE SEULAWAH AGAM 160 MW Ready for Exploitation SIBAYAK 12 MW SARULA 330 MW Production Stage Planned to be Tendered Capacity is initial indication JAILOLO 75 MW LUMUTBALAI LUMUT BALAI (UNOCAL) 110 MW DIENG 60 MW KARAHA 400 MW LAHENDONG I, II,III,IV 80 MW KAMOJANG 150 MW TAMPOMAS 50 MW UNGARAN 50 MW ULUBELU 110 MW BEDUGUL 175 MW NGEBEL 120 MW CISOLOK 45 MW SALAK 375 MW Tangkuban Perahu 55 MW 7 ULUMBU 10 MW PATUHA 400 MW WAY. WINDU I 110 MW WAY. WINDU II 117 MW DARAJAT 255 MW MATALOKO 2.5 MW Total Installed Capacity January 2009 : 1,196 MW DISTRIBUTION OF GEOTHERMAL IN INDONESIA ELECTRICITY FOR A BETTER LIFE Non Volcanic Location : 53 Schemes Potential :1. 15 GWe Maluku Sulawesi Kalimantan Irian Jaya Jawa Total Location : 256 Schemes Total Potential : 27 GWe Bali Flores Alor Timor Targets of Long Term Geothermal Development ELECTRICITY FOR A BETTER LIFE 1. Development of geothermal must able to achieve Government’s target in the Road Map of Geothermal Development (6000 MW by 2020 and 9500 MW by 2025) 2. Both Investor and off taker shall gain benefit (win-win Solution) 3. Both Investor and off taker must together bear the risk of geothermal development according to their respective share and role. 4. All risks of geothermal development will then be accounted in the price of electricity produced. 9 9 Phase II of 10.000 MW Acceleration Program ELECTRICITY FOR A BETTER LIFE GENERATION COMPOSITION Hydro 12% Steam 26% Geothermal 48% CCGT 14% Total kapasitas 9.963 MW Phase II Acceleration program is dominated by renewable energy power plants (60%): geothermal with 48% and hydro at 12%. 10 Locations of Phase II Acceleration Project ELECTRICITY FOR A BETTER LIFE SUMATERA Core Project: • HEPP • GeoPP • SCPP • CCPP : 174 MW : 1.770 MW : 724 MW : 66 MW KALIMANTAN Core Project: • SCPP • CCPP : 676 MW : 120 MW SULAWESI Core Project: • GeoPP : 125 MW • SCPP : 298 MW PAPUA Core Project: • SCPP : 114 MW MALUKU Core Project: • GeoPP : 37 MW • SCPP : 32 MW NTT JAMALI Core Project: Core Project: • GeoPP • SCPP • CCPP • HEPP : : 1.525 MW : 2.000 MW : 1.200 MW 1.000 MW • GeoPP : 41 MW • SCPP : 30 MW NTB TOTAL Core Project: • HEPP • GeoPP • SCPP • CCPP TOTAL : 1.174 : 3.528 : 3.944 : 1.386 : 10.032 MW MW MW MW MW Core Project: • GeoPP :40 MW • SCPP :70 MW 11 11 PLN and IPP Project in Phase II Acceleration Program ELECTRICITY FOR A BETTER LIFE Power Plant PLN + IPP Capacity (MW) PLN Capacity (MW) IPP Investment (MM USD) Capacity (MW) Investment (MM USD) Steam 3,944 3,000 3,911 944 1,730 CCGT 1,386 1,200 1,020 186 158 Geothermal 3,528 977 1,529 2,551 5,925 Hydro 1,174 1,174 1,010 Total 10,032 6,351 7,470 3,681 7,813 Total Investment Required for PLN & IPP : USD 15,823 million 12 12 PLN & IPP Project Schedule in Phase II Acceleration Program ELECTRICITY FOR A BETTER LIFE Owner Type 2011 2012 2013 2014 2015 Total (MW) Java-Bali PLN Hydro CCGT 1,000 150 1,050 Geothermal Steam IPP Geothermal 1,000 175 1,200 60 220 1,000 1,000 310 445 260 540 2,000 55 985 Outer Java-Bali PLN Hydro Geothermal 174 65 Steam IPP CCGT 66 Geothermal Steam TOTAL 174 75 139 119 200 500 300 40 437 1,000 120 186 220 515 386 446 1,566 12 227 397 196 112 944 293 2,067 3,095 3,665 913 10,03213 The largest geothermal potential ELECTRICITY FOR A BETTER LIFE • • • • Number of Volcanoes : 150 Potential : 40% of the World potential Promising fields : 250 fields, Potential : more than 27,000 MW Current Installed Capacity : 1,196 MW 30,000 EXPLOITABLE RESOURCE POTENTIAL (50 fields) Indonesia Geothermal potential (MW) 25,000 Japan USA 20,000 15,000 10,000 Mexico Iceland Philippines 5,000 y = 185.08x - 417.83 R2 = 0.9705 Italy New Zealand 0 0 20 40 60 80 100 No. of Volcanoes 120 140 160 14 JICA/WestJEC 19 Short Term Pipe Line for GPP Development ELECTRICITY FOR A BETTER LIFE 1. 2. 3. 4. 5. 6. 7. 8. Development of Fields under the Old Law Cooperation of Existing Developers and PLN Entry : Can be a Direct Appointment Existing Developer already had experience in assessing the risks Potential to have new PP built 1,300 MW in short term Extension of Existing Site New wells had already been drilled Scheme : Selling Steam or Selling Electricity Mid Term for GPP Development ELECTRICITY FOR A BETTER LIFE 1. Development of Green Fields as result New Law 2. New Developers need adaptation in assessing the risks 3. Scheme: Mostly through Selling Electricity 100 Days Program ELECTRICITY FOR A BETTER LIFE 1. PLN plan to propose to the Government to review the regulation related to GPP development 2. Focus of Restructuring : a. b. c. d. e. Mechanism of Tender Improve Quality of Tender Document Standardization ESC Risks distribution and Guarantee Pricing PT PLN (PERSERO) ELECTRICITY FOR A BETTER LIFE Conclusion 1. Following-up the government policy, maximizing of renewable energy/geothermal role has been anticipated in the fast-track program of generating development Phase-II by PLN and Directorate General of Mineral, Coal and Geothermal, MEMR. 2. The total target of geothermal power plant development of year 2008 to 2018 is 3080 MW of the Java Bali System and 1926 MW of the outer island, which cover green-field and brown-field that will be funded by the soft-loan of bilateral and multilateral funding agencies, and also through IPP participation. 18 ELECTRICITY FOR A BETTER LIFE THANK YOU