Renewable Energy Action Plan of Province 2010-2025

D-25 Report

CASINDO TEAM OF WEST NUSA TENGGARA Agustus 2011

PREFACE

Our praise and gratitude to Allah SWT because of His blessing and grace, we able to complete the Renewable Energy Action Plan of West Nusa Tenggara Province. The preparation of this document is collaboration between the Faculty of Engineering, University of and Energy Research Centre of the Netherlands (ECN) under the CASINDO Project. The document is expected to become a reference for government and private sectors in the development of renewable energy in West Nusa Tenggara Province, not only the development of renewable energy for electricity generation, but also for other needs such as fuel for industry and cooking fuel for household scale. Renewable Energy Action Plan of West Nusa Tenggara Province is a follow-up of the enactment of Presidential Regulation No. 5 Year 2006 concerning National Energy Policy, which the Central Government has set a target utilization of renewable energy by 2025 by 17%. Furthermore, this document contains data and information regarding current utilization of renewable energy, renewable energy potential and development opportunities, target of renewable energy development and action plans necessary to achieve the targets. Publishing of this document can not be separated from the support and cooperation of all related stakeholders, thank you very much to all those who have assisted in its completion and hopefully good cooperation can be further enhanced in the future. Finally, this document could be beneficial as the development of national energy, and more particularly to the development of regional energy of West Nusa Tenggara province. .

Mataram, August 2011

Casindo Team

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LIST OF CONTENTS

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PREFACE ………………………………………...... ………………………… i LIST OF CONTENTS …………………...... ………………………………………... ii LIST OF TABLES ………………...... ……………………………………………………... iv LIST OF FIGURES ……………...... …………………………………………………….. vi 1 INTRODUCTION ……...... ………………………………..………………………….. 1 1.1 Background ……...... ………………………………………....…………… 1 2 CURRENT CONDITION OF RENEWABLE ENERGY UTILIZATION ……...... 2 2.1 Current Energy Policy ……...... ………………………………… 2 2.1.1 National Energy Policy ……...... … 2 2.1.1.1 Presidential Regulation No. 5 Year 2006 ...... 2 2.1.1.2 Presidential Regulation No. 4 Year 2010 ...... 4 2.1.1.3 Policy on Small Scale Renewable Energy Development ...... ……………….…… 4 2.1.1.4 Policy on Geothermal Development ...... 6 2.1.2 Regional Energy Policy ...... 7 2.1.2.1 Governor Decree No. 110 Year 2007 ...... 7 2.1.2.2 One Million Cows Programme ...... 8 2.2.2.3 Self Sustained Energy Village (SSE) ...... 9 2.2 Current Renewable Energy Utilization ……...... ………… 10 2.2.1 Microhydro Power Plant ……...... …………… 11 2.2.2 Solar Power ……...... …………...... ……………… 13 2.2.3 Biogas ……...... ……………………………………… 14 3 RENEWABLE ENERGY DEVELOPMENT OPPORTUNITY ……...... 19 3.1 Renewable Energy Potential ……...... …………………………… 19 3.2 Development Opportunity ……...... ……………………………… 19 3.2.1 Hydro Power ……...... …………………………… 20 3.2.2 Solar Power ……...... ……………….....…………… 20 3.2.3 Biogas ……...... …………………………….………… 21 3.2.4 Geothermal ……...... ……………………..………… 21 3.2.5 Biofuel ……...... …………………………..…………… 22 3.2.6 Biomass ……...... ………………………...…………… 22 3.2.7 Wind Power ……...... ……………………………… 23 3.3 Supply Demand Analysis ……...... …………………………………… 23 3.3.1 Supply Demand Micro Analysis ……...... … 23 3.3.2 Supply Demand Macro Analysis ……...... … 28 4 RENEWABLE ENRGY DEVELOPMENT ACTION PLAN ……...... 29 4.1 Renewable Energy Development Target ……...... ……...... 29 4.2 Action Plan ……...... ……...... 29

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4.3 Implementation Strategy ……...... ……...... 33 4.3.1 Renewable Energy Institution ……...... …….. 33 4.3.2 Funding Scheme ……...... ……...... 35 4.3.3 Human Resources and Technology ……...... 37 4.3.4 Detail Implementation Plan ……...... ….…... 37 Bibliography ……...... ……...... 40

LIST OF TABLES

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Table Page

1 Cows Population Target 8 ...... 2 List of Self Sustained Energy (DME) Village Development 9 ...... 3 Renewable Energy Development (until 31th December 2010) 11 ...... 4 Microhydro Electricity Production Year 2010 12 ...... 5 Solar Power Electricity Production Year 2010 13 ...... 6 Cost of Biogas Digester Construction 14 ...... 7 Biogas Energy Production Year 2010 15 ...... 8 Data of Energy Consumption per Type of Fuel 16 ...... 9 Energy Consumption in BOE Year 2010 17 ...... 10 Renewable Energy Potential and It’s Current Utilization 19 ...... 11 Renewable Energy Development Opportunity 20 ...... 12 Hydro Power Potential Development Opportunity 20 ...... 13 Cows Population in West Nusa Tenggara Province 21 ...... 14 Geothermal Development Opportunity 21 ...... 15 Jatropha curcas Plantation 22 ...... 16 Agricultural Waste Potential for Biomass 22 ...... 17 Data of Wind Velocity ...... 23 18 Examples of MHP Cases for Supply Demand Micro Analysis 24 ...... 19 Number of Collective Cages in West Nusa Tenggara Province 25 ...... 20 Biogas Development Opportunity 26 ...... 21 Geothermal Development Opportunity 26 ......

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22 Biofuel Development Opportunity 27 ...... 23 Biofuel Development Opportunity (in BOE) 27 ...... 24 Biomass Development Opportunity for Electricity Generation 28 ...... 25 Projection of Renewable Energy Utilization (BOE) 28 ...... 26 Renewable Energy Development Target (BOE) 29 ...... 27 Minihydro Power Plant Development Plan 30 ...... 28 Microhydro Power Plant Development Plan 30 ...... 29 SHS 50 Wp Development Plan 31 ...... 30 PV Centralized Development Plan 31 ...... 31 Biogas Development Plan 32 ...... 32 Geothermal Power Plant Development Plan 32 ...... 33 Biomass Power Plant Development Plan 32 ...... 34 Wind Power Development Plan 33 ...... 35 Sharing Funding Scheme Between Government and Private Sector 35 ...... 36 Renewable Energy Funding Sources 35 ......

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LIST OF FIGURES

Figure Page

1 Energy Mix Target of National Energy Policy 3 ...... 2 Microhydro Potential and It’s Development at Murpeji Sub Village, Dasan Geria Village, Kecamatan Lingsar, West 5 ...... 3 Geothermal Potential at Sembalun, 6 ...... 4 Energy Mix Target Regional Energy Policy for Electricity Generation 7 ...... 5 Lantan Microhydro at Lantan Village, Batukliang Utara Sub Regency, (on grid) 12 ...... 6 Centralized PV (on grid) at Gili Terawangan 13 ...... 7 Household Scale Biogas at Gapura Village, Pujut Sub Regency, Central Lombok Regency 14 ...... 8 Current Energy Utilization 17 ...... 9 Current Energy Utilization for Electricity Generation 18 ......

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Chapter 1 Introduction

1.1 Background

Energy resources are natural wealth, which have strategic value and very important to support the sustainability of economic activity. Considering it’s significant role, energy management, which included its provision, utilization and enterprise must be done equitable, sustainable, and optimal in order to deliver added value for the welfare of the people.

As a reference of energy management, central government issued Presidential Regulation No. 5 Year 2006 considering National Energy Policy (KEN). In KEN, it is stated the energy mix target that becomes a reference of the national energy development. As a follow-up, local governments need to establish an action plan in order to achieve the target of the national energy mix. The action plan is a guideline for both government and private institutions in the region to develop renewable energy. This is in line with central and local government efforts that want to reduce the role of conventional energy and replace it with locally available renewable energy and more environmentally friendly.

In the preparation of action plans, study is conducted on the current status of renewable-energy utilization, mapping their potential development opportunities to determine the next development target. To support it, a team consists of related stakeholder is established, who perform their duties based on the detail implementation plan of renewable-energy development.

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Chapter 2 Current Condition of Renewable Energy Utilization

In the National Energy Policy, one of the major policies of national energy development is to increase diversification of energy through efforts to use renewable energy like geothermal, hydropower, solar energy, wind energy and biomass at least 17% of the total energy mix by 2025. By utilizing renewable energy, dependency of fossil-fuel use in the national energy supply system can be decreased. In addition, the issue of global warming that is associated with the consumption of fossil fuels become one of the reasons for reducing the level of fossil-fuel use. Given the role of renewable energy are very important in the national energy supply system, needed policies that support sustainability implementation.

2.1 Current Energy Policy

2.1.1 National Energy Policy

2.1.1.1. Presidential Regulation No. 5 Year 2006

Considering the amount of renewable-energy potential, which has not been utilized in , but its contribution in the energy mix target of national decline, on the other hand, due to increasing world oil prices while the availability of reserves in the country is running out, the Government then sets the Presidential Regulation No. 5 Year 2006 concerning National Energy Policy.

National Energy Policy aims to direct efforts to secure energy supply in the country, including in the provision and utilization, with the following target.

a. The achievement of energy elasticity less than one in 2025. b. The realization of the energy mix target by 2025, as shown in figure 1.

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Energy Mix Target : National Energy Policy 2% Petroleum

5% 5% 5% 20% Natural Gas Coal Biofuel

Geothermal 33% 30% Other RE

Liquified Coal

Figure 1. Energy Mix Target of National Energy Policy

 Petroleum become less than 20 %;  Natural gas become more than 30%;  Coal become more than 33%;  Biofuel become more than 5%;  Geothermal become more than 5%;  Biomass, nuclear, microhydro, solar power and wind power become 5%;  Liquified coal become more than 2 %.

The above target is achieved through the implementation of main policies and supporting policies as follows.

a. Main Policy • Energy supply; • Utilization of energy; • Energy pricing policies; • Protecting the environment.

b. Supporting Policies • Development of energy infrastructure; • Partnership of government and business world; • Community empowerment; • Research and development.

This Presidential Regulation is mandated to the Minister of Energy and Mineral Resources to establish the National Energy Management Blueprint

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as a basis for the preparation of the development and utilization pattern of each type of energy. Energy Management Blueprint, among others, contain the following.

a. Policy on the securing of domestic energy supply; b. Policy on public service obligations; c. Management of energy resources and utilization.

The final part of regulation is to regulate the energy pricing policy which is adjusted gradually until a certain time limit to its economical price. However with the terms, phasing in the adjustment of energy prices should provide optimum impact on energy diversification.

To focus and achieve targets for renewable energy development has been established, in 2010, the government established a first echelon unit under the Ministry of Energy and Mineral Resources, named the Directorate General of the Renewable Energy and Energy Conservation.

Currently, the Government in this matter the National Energy Council is preparing the new National Energy Policy that will be issued after obtaining the approval of the House of Representatives. Based on presentation materials from Director General of the Renewable Energy and Energy Conservation in 2010, the target energy mix in the new National Energy Policy revised to 25% by 2025, from a previous target of 17% in 2025.

2.1.1.2. Presidential Regulation No. 4 Year 2010

In order to accelerate the diversification of energy especially in electricity generation, the government established the Presidential Regulation No. 4 of 2010, which commissioned the PT. PLN (Persero) to do the accelerated development of power plants that use renewable energy such as hydro and geothermal energy sources.

In West Nusa Tenggara Province, power plant projects are included in the Presidential Regulation No. 4 of 2010 is a Geothermal Power Plant (PLTP) Sembalun 2 x 10 MW, PLTP Hu'u 2 x 10 MW and 70 kV transmission line.

2.1.1.3. Policy on Small Scale Renewable Energy Development

Development of micro hydro power plant (MHP) aimed to electrify remote areas which are not reached by the grid. But in it’s development, many of the potential energy of both microhydro scale/minihydro located at PLN service area. Therefore, the current MHP not only serves as an independent power plants that meet the electricity needs of the remote

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(stand alone/off grid), but also implemented as MHP on grid which is interconnected with the grid, so that the electricity generated directly purchased by PLN .

Figure 2. Microhydro Potential and It’s Development at Murpeji Sub Village, Dasan Geria Village, Kecamatan Lingsar,

To attract private sector interest to invest in the field of electricity, especially electricity generation utilizing renewable energy sources which are environmentally friendly, the Government set a Regulation of the Minister of Energy and Mineral Resources No. 31 of 2009 regulates the purchase price of electricity by PT. PLN (Persero) from power plants using renewable energy with a capacity below 10 MW. The purchase price of electricity is set as follows. a. Rp. 656/kWh x F, if interconnected in the medium voltage; b. Rp. 1.004/kWh x F, when interconnected to low voltage.

Where F is the incentive factor according to the location, incentive factor for West Nusa Tenggara Province is 1.3.

Considering the electricity condition in West Nusa Tenggara Province is currently in the standby state, where if an interruption occurs or maintenance is being performed on one machine will lead to blackouts. Therefore, the regional government and PT. PLN (Persero) region WNT need to encourage the participation of private sectors, cooperatives and non-governmental organizations to play a role in in increasing electricity supply in particular the use of renewable energy sources are environmentally friendly in the area.

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2.1.1.4. Policy on Geothermal Development

Utilization target of geothermal energy in National Energy Policy is set at more than 5% of the total energy mix target by 2025. The Government Policy of the Republic of Indonesia concerning geothermal development in general contained in Law No. 27 of 2003 concerning Geothermal. To optimize the utilization of geothermal energy, geothermal exploitation activities on the upstream side which is expensive and requires high technology is set in this legislation. While activity on the downstream side related to the utilization follows the rules and regulations in the electricity sector.

Figure 3. Geothermal Potential at Sembalun, East Lombok Regency

To meet electricity demand in it’s service area and as an effort to achieve the utilization of geothermal energy by more than 5% in the energy mix target by 2025, the Government issued Regulation of the Minister of Energy and Mineral Resources No. 32 of 2009 sets electricity purchase of geothermal power plants in the area of geothermal mining work coming from:

a. Auction winner of geothermal mining working areas; b. Holders of geothermal mining working areas that already exist, based on the legislation before its enactment of Law No. 27 of 2003 concerning Geothermal.

The highest reference price on the high voltage side is equal to 9.70 cents U.S. $ / kWh for the purchase of electricity by PT. PLN (Persero).

Geothermal potential in West Nusa Tenggara Province which has become Regional Mining Authority (WKP) and has been auctioned is located in Hu'u, Regency. The development plan of this potential for geothermal power plants with installed capacity of 3 x 20 MW have been listed in the General Plan of Electricity Supply (RUPTL) PT. PLN (Persero).

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2.1.2 Regional Energy Policy

2.1.2.1 Governor Decree No. 110 Year 2007

Regional regulations in energy sector implemented in West Nusa Tenggara Province is Governor Decree No. 110 of 2007 concerning Policy on Regional Electricity Sector. It aims to direct efforts to create condition whereas electricity supply able to meet the needs of the community, as well as guidance for electriciy development and to encourage economic growth and improve the quality of life in West Nusa Tenggara Province.

Policy on Regional Electricity Sector West Nusa Tenggara targets are as follows.

1. To create a balance between electricity supply and demand; 2. Availability of electricity infrastructure to maximize rural community access to electricity, so that by 2020 the entire village has been electrified with electrification ratio by 90%; 3. To create balanced energy mix by 2020 with the role of each primary energy source for electricity supply, as well as to reduce the use of fossil fuels as primary energy, as shown in figure 4.

Energy Mix Target : Regional Energy Policy 2%

23% Petroleum 38% Biofuel 9% Coal

Geothermal and Hydro

28% Other RE

Source : Governor Decree Number 110 Year 2007

Figure 4. Energy Mix Target Regional Energy Policy for Electricity Generation

a. Petroleum become less than 23%; b. Biofuel Utilization more than 9%;

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c. Coal become more than 28 %; d. Renewable energy especially hydro power and geothermal achieve 38%; e. Other renewable energy consist of wind, solar and biomass 2%.

Currently the energy utilization in West Nusa Tenggara Province is still heavily dependent on fossil fuels imported from outside the area. On the other hand, the potential of renewable energy such as geothermal and hydro both microhydro scale or minihidro widely available, but utilization is still not optimal. To achieve the energy mix target in the Regional Energy Policy, required supporting policies to regulate strategies and action plans as needed.

In West Nusa Tenggara Province, although the energy mix target has been established in the Regional Electricity Sector Policy, but the target need to be re-evaluated because it does not reflect the true condition of the area.

2.1.2.2 One Million Cows Programme

One Million Cows Programme is an acceleration programme of cows farm development, with more priority to empower local resources with the aim to achieve optimal population as soon as possible in accordance with capacity of the region so that it can contribute greatly to rural income, meet demand for meat nationally and meet demand for cows seed other regions. Thus, indirectly, dairy farms are expected to become the driving forces or other levers of economic sectors in order to improve the economy, health, intelligence and public welfare.

Cows population programme is presented in table 1.

Table 1. Cows Population Target

Regular Prog. Accelerated Prog. Population Year Population (Cows) (Cows) 2008 546,114 546,114 2009 587,247 602,333 2010 631,511 683,347 2011 679,111 780,724 2012 730,299 897,832 2013 785,346 1,032,507 Source : Blue Print One Million Cows, 2009

However the cows population target above is not integrated with renewable energy development policy, especially biogas development targets. Though

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an increasing number of cows population, also increases the production of manure which, if not handled properly could potentially cause environmental pollution and social problems. To overcome this, the integration required between the One Million Cows Programme and biogas development targets, as well as an intensive coordination of related parties such as the Animal Husbandry Office, Mining and Energy Office and Hivos (the developer of biogas), thereby not only increasing cows population is achieved but also the fulfillment of energy needs for households and prevention of environmental problems.

2.1.2.3 Self Sustained Energy Village (SSE)

Besides renewable energy installations, the Central Government and Regional Government of West Nusa Tenggara Province promote Self Sustained Energy Village (SSE) programme, which aims to maintain energy supply for the community, diversifying the energy sources, increase the productivity of rural economic activities, increase employment, and improving welfare in general through the provision of renewable energy which is affordable and sustainable. Self Sustained Energy Village (SSE) is a breakthrough program conducted by Mining and Energy Office from 2009 to 2013.

In West Nusa Tenggara, the development of Self Sustained Energy Village is directed to utilize locally available potential for both vegetable based and non vegetable based which direction follow central government policy.

Self Sustained Energy Village main target is to create fulfillment of energy needs from local resources, job opportunities and increasing income generation in poor villages, coastal villages, small islands and rural villages across the border. List of Self Sustained Energy Village development in West Nusa Tenggara Province presented in table 2.

Table 2. List of Self Sustained Energy (DME) Village Development

Early No Regency Sub Regency Village SSE Based on Utilization 1. West Lombok Sekotong Buwun Mas SHS Lighting Narmada Sedau Microhydro Lighting 2. North Lombok Bayan Akar-Akar SHS Lighting Mumbul Sari SHS Lighting 3. Central Lombok Praya Timur Mujur SHS Lighting Praya Barat Daya Kabul Jatropha curcas Lighting and Cooking Batu Jangkih SHS Lighting

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Pujut Prabu Jatropha curcas Lighting Batukliang Utara Lantan Microhydro and Lighting and Biogas Cooking Pringgarata Pemepek Microhydro Lighting 4. East Lombok Sakra Timur Lepak SHS Lighting Jerowaru Pemongkong SHS Lighting Suela Perigi SHS Lighting Aikmel Kalijaga Selatan Biogas Cooking Kalijaga Timur Microhydro and Lighting and Jatropha curcas Cooking 5. Maronge Maronge SHS Lighting Batulanteh Tepal SHS and Lighting Microhydro Baturotok SHS and Lighting Microhydro 6. West Sumbawa Sekongkang Talonang SHS Lighting Aik Kangkung SHS Lighting 7. Dompu Kilo Taropo SHS Lighting Manggelewa Soriutu Jatropha curcas Lighting and Cooking 8. Langgudu Kerampi SHS Lighting Dumu SHS Lighting Tambora Oi Marai Microhydro Lighting Donggo Bumi Pajo SHS Lighting Source : Mining and Energy Provincial Office of WNT, 2010

In addition, in 2009, 4 (four) units of productive tools was given in 4 (four) microhydro power plant (MHP) sites, so that the utilization of electricity generated by microhydro does not used only for lighting but also for productive activities. The locations are as follows.

• 1 package of animal feed production machine in MHP Lantan, Lantan Village, Batukliang Utara Sub Regency, Central Lombok Regency; • 1 package of woodworking machine in the MHP Selenaik, Sedau Village, Narmada Sub Regency, West Lombok Regency; • 1 package of coffee bean processing machine in MHP Baturotok, Baturotok Village, Batulanteh Sub Regency, ; • 1 package of coffee bean processing in the MHP Tepal, Tepal Village, Batulanteh Sub Regency, Sumbawa Regency.

2.2 Current Renewable Energy Utilization

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West Nusa Tenggara Province has abundant potential of renewable energy, including hydro energy, geothermal, wind, biomass, biogas and solar. Although it has abundant renewable energy potential but their utilization is still limited due to considerations of cost and technology. Renewable energy types that developed so far are hydro power for microhydro power plant and minihydro power plant, solar energy for rural household lighting, biogas and biomass for household cooking. More details are presented in table 3.

Table 3. Renewable Energy Development (until 31th December 2010)

Renewable Energy Development (Unit) No Regency Solar Wind MHP Biodiesel Biogas Power Power 1 North Lombok 3 407 - 1 - 2 West Lombok 5 1,206 - 9 - 3 Central Lombok 3 948 1 45 - 4 East Lombok 1 1,241 - 12 1 5 West Sumbawa - 609 - 2 - 6 Sumbawa 2 1,014 - 4 - 7 Dompu 1 908 1 9 8 Bima 2 934 - 2 1 Total 17 9,476 2 84 2 Source : Mining and Energy Provincial Office of WNT, 2010

2.2.1 Microhydro Power Plant (MHP)

Installation of off grid microhydro power plant to electrify remote areas which are not reached by PLN carried out by the Government, financed from both the regional budget or the Central Government budget.

Each year the Regional Government of West Nusa Tenggara Province through Mining and Energy Office conduct a preliminary study which, if judged feasible can be increased to Detail Design Engineering (DED). After the construction is completed, the management handed over to local community or village-owned enterprises (BUMDES) or cooperatives at village level. Tariff setting and community set up assisted by Mining and Energy Office and village government.

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Figure 5. Lantan Microhydro at Lantan Village, Batukliang Utara Sub Regency, Central Lombok Regency (on grid)

To calculate the electricity production generated by microhydro/minihydro power plant, it is used the following assumptions.

1. Since most of the MHP are off grid, then the pattern of daily operations are between 17 – 20 hours, except the MHP Pengga and MHP Lantan which have interconnection agreements with PLN; 2. Duration of wet season in Lombok island is 6 (six) months starting from November, December, January, February, March and April; 3. Duration of dry season in Sumbawa island is 4 (four) months starting from December, January, February and March; 4. Lifetime of MHP with good maintenance can reaches 25 years with capacity factor of 50% - 90%. Capacity factor of MHP under lifetime of 5 (five) years is 90% while the MHP with lifetime above 5 years is 50% - 80%.

Table 4. Microhydro Electricity Production Year 2010

Operating Installed Capacity Electricity Production No Microhydro (kW) (kWh) 1 MHP Teres Genit 30 97,740 2 MHP Santong I 40 98,464 3 MHP Santong 2 25 69,233 4 MHP Murpeji 50 162,900 5 MHP Selenaik Atas 25 69,233 6 MHP Selenaik 22 60,925 7 MHP Aik Berik 22 60,925 8 MHP Lantan 100 390,960 9 MHP Bunut Jambul 30 97,740 10 MHP Tepal 30 64,796 11 MHP Oi Marai 200 435,600 12 MHP Pengga 400 868,800

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Total 924 2,477,314 kWh Equal to 3,948.09 BOE 2.2.2 Solar Power

Solar Home System (SHS) is most widely used of solar power utilization in West Nusa Tenggara Province. SHS is designed in such a way that is easy to be assembled and operated by the ordinary villagers. But this benefit also being a weakness in SHS rural electrification programme. Many SHS that had been distributed was traded by the beneficiaries. SHS characteristics that are installed individually at each home, resulting in weak oversight and reduced function of management institutions which have been established.

Figure 6. Centralized PV (on grid) at Gili Terawangan

To calculate the electricity production of SHS and Centralized PV, it used the following assumptions. 1. The pattern of daily operations for SHS and Centralized PV are 8 hours per day; 2. SHS and Centralized PV capacity factor 80%; 3. SHS and Centralized PV which are installed under 2006 are not taken into calculation (assumed broken or already sold). . Table 5. Solar Power Electricity Production Year 2010

Operating Units Electricity Production No Regency SHS Centralized PV (kWh) 1 North Lombok 405 2 50.,341 2 West Lombok 1203 3 155.,227 3 Central Lombok 944 4 160,016 4 East Lombok 1,235 6 173,682 5 West Sumbawa 608 1 82,694 6 Sumbawa 1,013 1 129,998 7 Dompu 908 - 106,054 8 Bima 934 - 109,091

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Total 7,250 17 967,104 kWh Equal to 592.83 BOE 2.2.3 Biogas

Utilization of biogas in West Nusa Tenggara Province are still limited to meet the need of fuel for household cooking. Development of biogas, among others, implemented through a pilot scheme by Regional Government and BIRU programme (Domestic Biogas Programme) which is managed by HIVOS (Humanist Institute for Development Cooperation) with technical support from SNV (Netherlands Development Organisation). This programme is funded entirely by the Royal Netherlands Embassy in Jakarta and supported by the Ministry of Energy and Mineral Resources of the Republic of Indonesia.

Figure 7. Household Scale Biogas at Gapura Village, Pujut Sub Regency, Central Lombok Regency

In West Nusa Tenggara Province BIRU Programme has been running since July 2010 involving five (5) local partners in West Lombok Regency, Central Lombok Regency and East Lombok Regency. Each local partner has a construction worker and several supervisors who had been trained by HIVOS. The construction costs depend on the size biogas digesters are shown in table 6.

Table 6. Cost of Biogas Digester Construction

Size (m3) 4 6 8 10 12 Construction Cost IDR 5.3 IDR 6 IDR 6.7 IDR 7.6 IDR 8.5 Million Million Million Million Million Subsidize IDR 2 Juta IDR 2 IDR 2 IDR 2 IDR 2 Million Million Million Million Million Consumer Cost IDR 3.3 IDR 4 IDR 4.7 IDR 5.6 IDR 6.5 Million Million Million Million Million Source : Hivos, 2011

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To calculate the energy production of biogas, it is used the following assumptions.

1. Size of the digester used is 4 m3 (for 3 cows); 2. Gas produced as much as 1 m3 and can be used to cook for 4 (four) hours; 3. Biogas built under 2009 is not taken into calculation (assumed broken).

Table 7. Biogas Energy Production Year 2010

Number of Gas Production in No Regency Operating Biogas 2010 (m3) (Unit) 1 North Lombok 1 292 2 West Lombok 9 23,652 3 Central Lombok 61 1,086,532 4 East Lombok 19 105,412 5 Sumbawa 1 292 6 Dompu 7 14,308 Total 98 1,230,488 M3 Equal to 1,300.60 SBM

From Regional Energy Profile of West Nusa Tenggara Province, it is obtained energy consumption per type of fuel period 2001 to 2005. Then data from 2001 to 2005 is extrapolated to get data until 2010 as shown in table 8.

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Table 8. Data of Energy Consumption per Type of Fuel

Year Type of Energy 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Aviation (KL) 6,331.00 8,324.00 8,002.00 10,995.00 10,420.00 12,069.10 12,934.48 14,165.83 14,773.73 16,113.88 Premium (KL) 131,866.00 138,777.00 148,470.00 169,912.10 181,710.43 193,394.29 209,195.27 224,016.24 236,353.60 250,906.45 Kerosene (KL) 176,172.00 164,506.00 177,810.00 134,930.00 130,181.87 120,253.10 104,696.01 85,302.73 77,650.62 61,613.01 Automotive 87,698.41 89,732.90 91,851.50 98,575.68 131,092.56 128,479.54 142,966.74 158,233.50 171,226.55 179,406.36 Diesel Oil for Electricity (KL) Automotive 102,448.00 102,957.00 98,764.00 103,301.40 92,932.23 94,474.38 91,646.70 89,305.26 85,548.65 84,800.56 Diesel Oil for Transportation (KL) LPG (Tones) - - 1,839.10 2,980.13 2,767.32 3,457.07 3,921.18 4,385.29 4,691.45 5,277.41 Coal (Tones) 491,412.83 493,874.81 496,349.12 498,835.83 501,363.71 503,826.09 506,325.06 508,822.61 511,315.13 513,800.33 Source : Regional Energy Profile of West Nusa Tenggara Province , 2005

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The data of energy consumption per type of fuel in 2010 then extrapolated into BOE (barrels of oil equivalent) to be compared with energy consumption data derived from renewable energy (MHP, solar power and biogas).

Table 9. Energy Consumption in BOE Year 2010

Energy Type of Energy Consumption (BOE) Aviation 94.922,06 Premium 1.462.157,36 Kerosene 365.204,95 ADO for Electricity 1.163.826,98 ADO for Transportation 550.109,73 LPG 44.987,79 Coal 2.563.503,97 Renewable Energy 5.832,58 (MHP, Solar Power and Biogas)

Current Energy Utilization in 2010 (BOE) Aviation Premium

0,12% 1,91% Kerosene

ADO for Electricity 25,90% 29,39% 0,90% ADO for 11,06% Transportation 23,39% LPG

Coal 7,34% Renewable Energy

Figure 8. Current Energy Utilization

From the above calculation, it is known that the utilization of renewable energy in West Nusa Tenggara Province is 0.12%. While the target set in the Regional Energy Policy by 40%. Consumption of fuel fuels is still dominating by 73.09%, consist of 1.91% aviation, automotive diesel oil both for electricity and transportation is 34.45%, 7.34% kerosene and 29.39% premium. While the reduction target set in the Regional Energy Policy is less than 23% by 2025.

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Energy Mix for Electricity Generation (Current Condition)

0,00% 0,00%0,19% 0,42%

0,00% Coal 48,42% ADO

Wind Solar 50,97% Geothermal

Hydro

Microhydro

Figure 9. Current Energy Utilization for Electricity Generation

For electricity generation, coal usage is derived from the electricity generation owned by PT. Newmont Nusa Tenggara is dominated by 50.97%, followed by automotive diesel oil at 48.92%. Contribution of renewable energy is still very small, MHP by 0.25% and 0.12% for solar power.

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Bab 3 Renewable Energy Development Opportunity

3.1 Renewable Energy Potential

The potential of renewable energy can be classified into:

a. Local energy (isolated), potential energy which is only used to meet local energy needs; b. Tradable energy (on grid), it is used not only to meet local energy needs, but if there is excess energy can be sold to another party via interconnection.

As condition change so does the classification above. For example, a MHP previously used to electrify area around it, turns into tradeable energy when PLN grid is installed.

Based on the information and the survey conducted by Mining and Energy Provincial Office of West Nusa Tenggara, renewable energy potential can be classified into local energy and tradeable energy. Classifications are tabulated as follows.

Table 10. Renewable Energy Potential and It’s Current Utilization

Installed Utilization Type of Energy Potential Capacity Minihydro 198.75 MW - - Microhydro 13.73 MW 0.979 MW 1,274.02 BOE/Year Geothermal 145 MWe - - Biofuel - Crude Jatropha Oil 115,186 BOE - - - Cake 125,424 BOE - - Biomass 667,479 BOE - - Electricity Biogas 61,198,712 98 m3 1,300.60 BOE/Year m3/Year Wind - - - Solar Power - 0.448 MW 640.81 BOE/Year Sea Current - - -

3.2 Development Opportunity

Based on the data of renewable energy potential, renewable energy potential development opportunities in West Nusa Tenggara are as follows.

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Table 11. Renewable Energy Development Opportunity

Type of Energy Development Opportunity Maximum Capacity Minihydro Power Plant Connect to grid (tradeable) 198.75 MW MHP Rural electrification (local) 12.57 MW Geothermal Power Plant Connect to grid (tradeable) 145 MWe Biofuel - Crude Jatropha Oil Commercial 115,186 BOE - Cake Household use 125,424 BOE Biomass Gasification Electricity 667,479 BOE Electricity Power Plant Biogas Household use 10,220,185 m3/Year Wind Power Electricity - Solar Power Electricity - Sea Current Power Plant Electricity -

3.2.1 Hydro Power

Classification of hydro power potential into local energy and tradable energy based on capacity. Capacity below 1 MW (<1 MW) belong to the local energy, while capacity above 1 MW (> 1 MW) are included in tradeable energy.

Table 12. Hydro Power Potential Development Opportunity

Development Opportunity No Regency Local Tradable (MW) (MW) 1 North Lombok 1.99 12.50 2 West Lombok 1.19 - 3 Central Lombok 1.08 1.40 4 East Lombok 0.42 25.36 5 West Sumbawa 0.30 40.00 6 Sumbawa 4.82 119.50 7 Dompu 0.61 - 8 Bima 3.33 - Total 13.73 198.75 Source : Mining and Energy Provincial Office of WNT, 2010

3.2.2 Solar Power

The intensity of solar radiation in West Nusa Tenggara Province is by average of 4.51 Watt/m2/Jam. The utilization of solar energy for electricity generation beside carried out by the Government through rural electricity programme, but 20

also evolved from community initiative and participation of others through Cooperate Social Responsibility (CSR), for example LIMAR programme from PLN’s CSR fund. However, due to it’s limited electricity generated and only sufficient to meet the needs of small household, then the potential of solar energy is classified into local energy.

3.2.3 Biogas

Biogas potential can be seen from the development of cows population in all regencies/municipalities in NTB as listed in table 13.

Table 13. Cows Population in West Nusa Tenggara Province

No Regency 2004 2005 2006 2007 2008 r (%)

1. Kota Mataram 938 952 996 1,292 714 - 2.69 2. West Lombok 102,460 106,695 112,648 110,462 121,582 4.46 3. Central Lombok 72,159 72,519 73,891 74,843 75,744 1.22 4. East Lombok 60,896 60,135 60,677 64,947 64,414 1.47 5. West Sumbawa 15,449 17,941 20,224 21,737 29,337 17.83 6. Sumbawa 68,690 75,650 88,964 102,095 114,595 13.68 7. Dompu 43,164 49,947 52,339 58,897 61,120 9.20 8. Bima 57,087 59,012 61,874 62,398 65,988 3.71 9. Kota Bima 5,191 8,314 9,763 11,165 12,616 26.24 Total 426,034 451,165 481,376 507,836 546,114 6.41 Source : Blue Print One Million Cows Programme, 2009

Development of biogas is primaly directed at Lombok island, considering the maintenance system by using a cage is applied. Collective cages seen more potential for development of biogas to generate electricity.

3.2.4 Geothermal

Geothermal potential found in 3 (three) locations in Sembalun namely, East Lombok Regency at 70 MWe, in Maronge, Sumbawa Regency at 6 MWe and in Hu'u, at 69 MWe.

Table 14. Geothermal Development Opportunity

Potential (MWe) No Regency Location Local Tradable 1 East Lombok Sembalun - 70 2 Sumbawa Maronge - 6 3 Dompu Hu'u - 69 Total 0 145 Source : Mining and Energy Provincial Office of WNT, 2010

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3.2.5 Biofuel

Jatropha curcas plantation in West Nusa Tenggara Province mostly conducted by private and some are small pilot plantations owned by government agencies. Areas of plantation are as follows.

Table 15. Jatropha curcas Plantation

No Regency Plantation (Ha) 1 North Lombok 21.50 2 West Lombok 245.50 3 Central Lombok 1,769.18 4 East Lombok 1,699.70 5 West Sumbawa 873.00 6 Sumbawa 992.50 7 Dompu 612.89 8 Bima 1,213.00 9 Kota Bima 8.00 Total 7,435.27 Source : Central Statistic Beureau, 2010

3.2.6 Biomass

Biomass can be wood and various types of agricultural waste such as husks, coir and coconut shell. The use of biomass for energy can be classified into: gasification, pirolisa, and direct burning. Gasification produces methane gas for combustion, electricity generation, and turn the turbines. Pirolisa produces charcoal for burning, for example for cooking. Direct combustion as many have done in rural areas for cooking, or may also for heating boilers for electricity generation (mostly done on the plantation).

Table 16. Agricultural Waste Potential for Biomass

Peanut Coconut Husk Corn Coir Cassava Sugarcane No Regency/Municipality Shell Shell (Tones) (Tones) (Tones) (Tones) (Tones) (Tones) (Tones) 1 North Lombok - - - 7,868 5,193 - - 2 Kota Mataram 6,401 8 3 15 10 - - 3 West Lombok 55,901 18,983 2,176 6,429 4,243 23,938 - 4 Central Lombok 107,852 6,656 1,112 5,961 3,934 11,422 - 5 East Lombok 87,324 48,776 263 4,820 3,181 11,571 1 6 West Sumbawa 17,106 6,414 46 527 348 94 9 7 Sumbawa 107,422 60,504 342 1,481 978 4,653 101 8 Dompu 45,179 14,638 64 241 159 1,420 - 9 Bima 86,360 27,158 1,625 633 418 6,254 9

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10 Kota Bima 10,272 2,181 162 116 76 8.696 - Total 523,817 185,318 5,792 28,090 18,539 68,049 120 Source : Central Statistic Beureau, 2010

3.2.7 Wind Power

Data of wind velocity in West Nusa Tenggara Province are as follows :

Table 17. Data of Wind Velocity

Average No Locations Velocity Add (m/s) 1 West Lombok Reg. Giligede 4.1 Data Lapan 2 Central Lombok Reg. Kute 5.3 Data Lapan 3 East Lombok Reg. Dusun Selayar , Desa 3.4 Pilot project by Lapan 7 kW, Gelanggang now it is broken Sambelia 4.1 Data Lapan Tembere 4.0 Data Lapan Sajang 4.0 Data Lapan 4 Dompu Reg. Doropeti 3.6 Data Lapan Soriutu, Manggelewa 3.5 Preliminary survey by Mining and Energy Prov. Office of WNT Nangadoro - Data Lapan 5 Bima Reg. Bajopulau 3.9 Data Lapan Pai, Sape 3.3 Data Lapan Source : Mining and Energy Provincial Office of WNT, 2010

3.3 Supply Demand Analysis

Supply and demand analysis is divided into two as follows :

3.3.1. Supply Demand Micro Analysis

a. PLTM/PLTMH

Supply Demand micro analysis is based on observations in the field. This analysis is taken into consideration because of characteristic and development opportunities of renewable energy is very "site specific". For example MHP development goal at first is to meet local energy needs by considering the

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number of available development funds. But on further developments, because electricity consumption by local community is smaller than the power generated, then there is excess power that can be sold to PLN. For more details take a few examples of cases as follows.

Table 18. Examples of MHP Cases for Supply Demand Micro Analysis

Number Number Total Total of Watt/House Utilization No Location of Supply Potential Electrified hold (W) (%) Household (MW) (MW) Household 1 MHP Teres 1,494 298 100 0.030 0.030 99.33 Genit, Bayan Village, Bayan Sub Reg., North Lombok Reg. 2 MHP Lantan, 1,669 850 100 0.085 0.100 85.00 Lantan Village, Batukliang Utara Sub Reg., Central Lombok Reg. 3 MHP Bunut 1,531 297 100 0.030 0.030 99.00 Jambul, Tete Batu Village, Sikur Sub Reg., Kab. East Lombok Reg. 4 MHP Tepal, 450 290 100 0.029 0.035 82.86 Tepal Village, Batulanteh Sub Reg., Sumbawa Reg. 5 MHP Oi Marai, 535 200 100 0.020 0.200 10.00 Oi Marai Village, Tambora Sub Reg., Bima Reg.

From the cases above, it is known that the utilization of hydro power potential at MHP Teres Genit, MHP Lantan, MHP Bunut Jambul and MHP Tepal by average of 91.55% of power generated. While at MHP Oi Marai because it is built near the site of transmigration settlements with small population, so that their utilization is still low at 10% of power generated.

Besides population, other factors that influence is the pattern of electricity utilization by the community. In MHP Teres Genit, MHP Lantan, MHP Bunut 24

Jambul and MHP Tepal is not only used for lighting, electricity generated by MHP is used to drive productive activities. For instance cottage for tourist at MHP Teres Genit, animal feed production at MHP Lantan and coffe bean processing at MHP Tepal. While at MHP Oi Marai, the electricity generated is used purely for the needs of lighting so that the percentage of utilization is small.

Since the MHP development aimed to encourage the development of productive end use, the value of 91.55% is used to generalize the utilization of hydro power potential belong to local energy in other locations, but still consider the availability of funds. On the other hand, the utilization of hydro power belong to tradeable energy is 100%.

b. Solar Power

Development of both SHS and centralized PV according to the needs and patterns of settlement area. For example centralized PV rather implemented in areas with settlement patterns accumulate (cluster), whereas the SHS more suitable for areas with a dispersed settlement pattern.

c. Biogas

Based on data from the document Blue Print One Million Cows Programme, and assuming each farmer has a 2 (two) cows, then the potential of biogas in West Nusa Tenggara Province is:

Table 19. Number of Collective Cages in West Nusa Tenggara Province

Number Number of Number of Cows of No Regency Farmer Cows in Every Population Collective (Household) Cages (Ekor) Cages 1 West Lombok 67,229 324 7,890 15,780 2 Central Lombok 80,574 226 4,580 9,160 3 East Lombok 70,240 228 5,728 11,456 Total 218,043 259 18,198 36,396

Based on the above calculation, the potential of cows for the development of biogas is 16.7% of all population. So that the assumptions used to calculate the number of cows that potential for the development of biogas are:  Potential for development of biogas from cow manure is 16.7% of all population;  The development of biogas mostly done in Lombok island, since this area apply cage system to take care of their livestock;

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 Trends in population growth following scenario of One Million Cows programme.

Table 20. Biogas Development Opportunity

Biogas Number of No Regency Production Cows (m3/Year) 1 North Lombok 10,706 2,110,132 2 West Lombok 12,687 2,500,565 3 Central Lombok 15,205 2,996,929 4 East Lombok 13,255 2,612,559 Total 51,853 10,220,185

d. Geothermal Power Plant

Assumptions used are:

 Because it belongs to tradable energy, geothermal resources are assumed to be utilized at a maximum of reserves available;  Stages of development plans following the General Plan of Electricity Supply (RUPTL) PT. PLN (Persero) of West Nusa Tenggara Province.

Table 21. Geothermal Development Opportunity

Geothermal No Regency Development (MWe) 1 Sembalun, East 70 Lombok Regency 2 Maronge, Sumbawa 6 Regency 3 Hu’u, Dompu Regency 69 Total 145

e. Biofuel

There are 2 (two) components that can be utilized from the seeds of Jatropha curcas, oil and cake (slag which still contains oil). The assumptions used in the calculation are: . Expelling ratio is 30 %; . Every 1 Ha of Jatropha curcas plantation can produce 2,100 kg Crude Jatropha Oil or 2,307 litre and 4,900 kg cake.

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Table 22. Biofuel Development Opportunity

No Regency CJO(kg) Cake (kg)

1 North Lombok 45,150 105,350 2 West Lombok 515,550 1,202,950 3 Central Lombok 3,715,278 8,668,982 4 East Lombok 3,569,370 8,328,530 5 West Sumbawa 1,833,300 4,277,700 6 Sumbawa 2,084,250 4,863,250 7 Dompu 1,287,069 3,003,161 8 Bima 2,547,300 5,943,700 9 Kota Bima 16,800 39,200 Total 15,614,067 36,432,823

Then the number above are converted into BOE (Barrel Oil Equivalent) as follows :

Table 23. Biofuel Development Opportunity (in BOE)

No Regency CJO(BOE) Cake (BOE)

1 North Lombok 333 363 2 West Lombok 3,803 4,141 3 Central Lombok 27,408 29,844 4 East Lombok 26,331 28,672 5 West Sumbawa 13,524 14,727 6 Sumbawa 15,376 16,742 7 Dompu 9,495 10,339 8 Bima 18,792 20,462 9 Kota Bima 124 135 Total 115,186 125,424

f. Biomass Gasification Power Plant

Utilization of biomass directly as firewood and charcoal for household cooking purposes are not included in the utilization of renewable energy. As for which is included in the utilization of renewable energy is for electricity generation via biomass gasification process. Development opportunities are tabulated as follows.

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Table 24. Biomass Development Opportunity for Electricity Generation

Biomass Waste No Regency BOE Electricity BOE (Tones)

1 North Lombok 13,061 22,503 9,001 2 Kota Mataram 6,436 12,425 4,970 3 West Lombok 111,670 212,335 84,934 4 Central Lombok 136,937 260,361 104,145 5 East Lombok 155,936 322,413 128,965 6 West Sumbawa 24,545 51,074 20,430 7 Sumbawa 175,481 372,510 149,004 8 Dompu 61,701 127,136 50,854 9 Bima 122,456 250,163 100,065 10 Kota Bima 21,503 37,777 15,111 Total 829,726 1,668,698 667,479

g. Wind Power

Wind energy development in West Nusa Tenggara Province refers to documents of Electricity Development Master Plan 2010 until 2014, published by the Directorate General of Electricity, Ministry of Energy and Mineral Resources.

3.3.2. Supply Demand Macro Analysis

Supply demand macro analysis are intended to calculate the utilization of renewable energy in primary energy mix target. Data supply and demand of renewable energy derived from supply demand micro analysis, while the data of total energy consumption obtained from the Regional Energy Profile Year 2005, and then interpolated until year 2025.

Table 25. Projection of Renewable Energy Utilization (BOE)

No Type of Energy Utilization 2010 2015 2020 2025 1 Minihydro Power Plant Grid - 96,942 99,338 99,338 2 Microhydro Power Plant Local 1,274 1,449 1,953 1,953 3 Solar Power Local 641 927 1,142 1,357 4 Biogas Local 1,301 9,648 9,847 10,046 5 Geothermal Power Plant Grid - 289,974 579,947 608,944 6 Biofuel Commercial - 255,019 270,291 286,477 7 Biomass Power Plant Industry - 707,451 749,817 794,719 8 Wind Power Local - 1,342 1,342 1,342 Note. The number are accumulated from previous year

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Bab 4 Renewable Energy Development Action Plan

4.1 Renewable Energy Development Target

Based on projection of renewable energy utilization in sub chapter 3.2.2, renewable energy development target in West Nusa Tenggara Province are :

Table 26. Renewable Energy Development Target (BOE)

Type of Energy 2010 2025 Minihydro Power Plant - 100,000 Microhydro Power Plant 1,274 2,000 Solar Power 641 1,500 Biogas 1,301 10,000 Geothermal Power Plant - 600,000 Biofuel - 300,000 Biomass Power Plant - 800,000 Wind Power - 1,500

4.2 Action Plan

Hydro power plant is electricity generation with hydro power as a driving force, by utilizing high waterfall (head, in meters) and the amount of water discharge (m3/second). Hydropower generally uses high dams and wide puddle. Unlike the micro hydro power plant (MHP), which generally uses run off river system so it is more acceptable to all parties.

Based on scale of electric power generated, the generation of electricity using hydro power can be classified as follows:  < 10 kW : picohydro  10 – 1 MW : microhydro  1 MW – 10 MW : minihydro  > 10 MW : hydro power plant

Renewable energy target above can be detailed per type of energy as follows.

a. Minihydro Power Plant

Milestone until 2025 can be tabulated as follows.

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Table 27. Minihydro Power Plant Development Plan Name of Power Plant Regency 2010 2015 2020 2025 Segara North Lombok - 5.8 MW - - Kokok Putih East Lombok - 3.8 MW - - Santong North Lombok - 0.85 MW - - Kukusan East Lombok - 0.2 MW - - Sumbawa Sumbawa - 10 MW - - Bintang Bano West Sumbawa - 8 MW - - Rea West Sumbawa - 5.7 MW - - Rhee Sumbawa - 4.3 MW - - Kokok Putih - 2 North Lombok - 1.8 MW - - Sesaot West Lombok - - 1 MW - Total - 40.45 MW 1 MW - Investment Cost (IDR) - 699,785,000,000 30,488,511,119 -

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 2,000/kW (without transmission cost)

b. Microhydro Power Plant

Milestone until 2025 can be tabulated as follows.

Table 28. Microhydro Power Plant Development Plan Name of Power Plant Regency 2010 2015 2020 2025 Murpeji North Lombok 0.05 - - - Kok Sabang North Lombok - 0.05 - - Sedau West Lombok - 0.08 - - Pemotoh Central Lombok - 0.03 - - Kalijaga Timur East Lombok - 0.025 - - Kalijaga Selatan East Lombok - 0.012 - - Sesaot West Lombok - 0.05 - - Karang Sidemen Central Lombok - 0.05 - - Jelateng West Lombok - 0.022 - - Tepal - 2 Sumbawa - 0.098 - - Baturotok - 2 Sumbawa - - 0.441 - Rarak Ronges West Sumbawa - - 0.05 - Pekat Dompu - - 0.025 - Total 0.05 MW 0.417 MW 0.516 MW - Investment Cost (IDR) 1,648,258,000 10,425,000,000 22,734,207,713 -

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 2,890/kW (without transmission cost) 30

c. Solar Power

Consist of Solar Home System (SHS) and PV centralized’s development plan. Milestone of development until 2025 are tabulated as follows.

Table 29. SHS 50 Wp Development Plan Regency 2010 2015 2020 2025 North Lombok 100 300 200 200 West Lombok - 400 200 200 Central Lombok 100 400 200 200 East Lombok - 400 200 200 West Sumbawa - 200 150 150 Sumbawa - 300 200 200 Dompu - 200 150 150 Bima - 300 200 200 Total 200 Unit 2,500 Unit 1,500 Unit 1,500 Unit Investment Cost (IDR) 1,200,000,000 15,000,000,000 15,861,075,149 27,952,633,875

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 694/unit (50 Wp)

Table 30. PV Centralized Development Plan Regency 2010 2015 2020 2025 North Lombok - 0.01 0.01 0.01 West Lombok 0.005 0.01 0.01 0.01 Central Lombok - 0.01 0.01 0.01 East Lombok - 0.015 0.015 0.015 West Sumbawa - 0.005 0.005 0.005 Sumbawa - 0.005 0.005 0.005 Dompu - 0.01 0.01 0.01 Bima - 0.01 0.01 0.01 Total 0.005 MW 0.075 MW 0.075 MW 0.075 MW Investment Cost (IDR) 389,250,000 5,838,750,000 10,289,872,503 18,134,271,226

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 9,000/kW (without transmission cost)

d. Biogas

Biogas produced from manure or wastes of food industry. So far, the development of biogas in West Nusa Tenggara Province only utilizing animal manure (cow) took care in cage system. Milestone of development until 2025 is tabulated as follows.

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Table 31. Biogas Development Plan Regency 2010 2015 2020 2025 North Lombok 1 130 3 3 West Lombok 9 154 4 4 Central Lombok 61 184 4 4 East Lombok 19 161 4 4 Sumbawa 1 - - - Dompu 7 - - - Total 98 Unit 629 Unit 15 Unit 15 Unit Investment Cost (IDR) 519,400,000 3,333,700,000 140,106,164 246,914,933

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is 153/m3 e. Geothermal Power Plant

Milestone of geothermal power plant development until 2025 can be tabulated as follows. Table 32. Geothermal Power Plant Development Plan Regency 2010 2015 2020 2025 East Lombok - 40 MW 20 MW - Sumbawa - 20 MW 40 MW 6 MW Dompu - 20 MW 40 MW - Total - 60 MW 60 MW 6 MW Investment Cost (IDR) - 622,800,000,000 1,097,586,400,297 193,432,226,416

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 1,200/kW (without transmission cost) f. Biomass Power Plant

Milestone of biomass power plant development until 2025 can be tabulated as follows. Table 33. Biomass Power Plant Development Plan Regency 2010 2015 2020 2025 Central Lombok - 0.03 - - Sumbawa - - 0.,03 - Dompu - - - 0.03 Total - 0.03 MW 0.03 MW 0.03 MW Investment Cost (IDR) - 389,250,000 685,991,500 1,208,951,415

Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 1,500/kW (without transmission cost)

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g. Wind Power

Milestone of wind power development until 2025 can be tabulated as follows.

Table 34. Wind Power Development Plan

Regency 2010 2015 2020 2025 West Lombok - 0.60 MW - - Central Lombok - 0.60 MW - - East Lombok - 0.65 MW - - Dompu 0.65 MW - - Total - 2.50 MW - - Investment Cost (IDR) - 108,125,000,000 - - Notes. Rate of interest is 12 % Numbers above are accumulated every 5 (five) years Investment cost is USD 5,000/kW (without transmission cost)

4.3 Implementation Strategy

To implement the action plan above, then the implementation strategies required are:

a. Establish and implement renewable energy institution; b. Develop and implement the funding schemes; c. Setting up human resources and technology; d. Develop detailed implementation plan.

4.3.1 Renewable Energy Institution

Renewable energy institution is the agency responsible for the development of renewable energy. This institution can be a unit under Regional Energy Forum (FORKENDA) which has been long established in West Nusa Tenggara Province.

Name of institution : Renewable Energy Development Team Patrons : Governor of West Nusa Tenggara Chairman : Regional Development and Planning Board of WNT Chief Executive : Mining and Energy Provincial Office of WNT

Development of Hydro Power/Minihydro Power Plant Coordinator : Public Works Provincial Office of WNT Members : - River Area Office of West Nusa Tenggara - Mining and Energy Provincial Office of WNT - PT. PLN (Persero) of West Nusa Tenggara - Environment and Research Provincial Office of WNT - Forestry Provincial Office of WNT

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Development of Microhydro Power Plant Coordinator : Mining and Energy Provincial Office of WNT Members : - Public Works Provincial Office of WNT - Cooperatives and Small/Medium Enterprises Provincial Office of WNT - Industry and Trading Provincial Office of WNT

Development of Solar Power Coordinator : Mining and Energy Provincial Office of WNT Members : - PT. PLN (Persero) of West Nusa Tenggara - Fisheries and Maritime Provincial Office of WNT - Community Empowerment Board and Village Government Provincial Office of WNT

Biogas Development Coordinator : Mining and Energy Provincial Office of WNT Members : Animal Husbandry Provincial Office of WNT

Geothermal Development Coordinator : Mining and Energy Provincial Office of WNT Members : - PT. PLN (Persero) of West Nusa Tenggara - Environment and Research Provincial Office of WNT - Forestry Provincial Office of WNT

Development of Biofuels (Biodiesel and Bioethanol) Coordinator : Plantation Provincial Office of WNT Members : - Mining and Energy Provincial Office of WNT - Industry and Trading Provincial Office of WNT - Pertamina (oil and gas state company) - Association of industry/traders

Development of Biomass Coordinator : Mining and Energy Provincial Office of WNT Members : - Agriculture Provincial Office of WNT - Plantation Provincial Office of WNT - Forestry Provincial Office of WNT - Industry and Trading Provincial Office of WNT - Association of industry/traders

The idea of the institution responsible for the development of renewable energy have been implemented by Mining and Energy Provincial Office of West Nusa Tenggara, but only for 2 (two) types of energy, which are microhydro and biofuel, namely:

1. Governor Decree No. 328 Year 2010 concerning Establishment of Technical Team of Microhydro Development;

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2. Governor Decree No. 468 Year 2009 concerning Establishment of Technical Team of the Biofuel Utilization as Alternative Energy.

But since 2011, the budget of government offices in the scope of West Nusa Tenggara Office are made based on their performance indicators. For example the performance indicator of the Public Works Office is in the field of housing and infrastructure, so that it can’t be burdened with the responsibility of the development in energy sector which is the performance indicator of Mining and Energy Office.

4.3.2 Funding Scheme

Considering the cost of renewable energy technologies remains high, it is needed sharing funding between the Government/Regional Government both from National State Budget (APBN) and Regional State Budget (APBD) and private parties/IPP, sharing funding scheme is as follows.

Table 35. Sharing Funding Scheme Between Government and Private Sector

Government Investment Cost (IDR) Sharing Year 2015 Year 2020 Year 2025 Sharing 25 % 1,099,272,525,000 883,339,623,334 180,731,248,399 Sharing 50 % 732,848,350,000 588,893,082,223 120,487,498,932 Sharing 75 % 366,424,175,000 294,446,541,111 60,243,749,466

Assumption : Existing interest rate is 12 %

Funding of renewable energy development apart from the state can also come from other funding sources, namely:

Table 36. Renewable Energy Funding Sources

Institution Role in Renewable Energy Development Government Directorate1. General of Preparation of policy formulation and Renewable Energy and standardization of renewable energy, such as : solar Energy Conservation power, microhydro, biogas and biofuel Ministry of Cooperatives Implementation within the framework of rural Small and Medium enterprise development : MHP Enterprises Ministry of Rural Implementation within the framework of rural Development development : solar power, microhydro, biogas and biofuel Department of Industry Implementation within the framework of rural and Trading industry development : biofuel

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Department of Farming Implementation in order to increase farmer’s welfare : biofuel Funding Institution GTZ Pioneering of technology development and management of Renewable energy : MHP GEF – SGP Funding of renewable energy implementation in the context of environmental conservation : MHP JICA Renewable energy implementation for rural enterprise development : MHP Japan Embassy Renewable energy implementation in the framework of community based development : MHP German Embassy Renewable energy implementation with participatory approach to forest conservation Non Governmental Organizations and Associations YBUL Facilitating the provision of renewable energy in collaboration with GEF: MHP IBEKA Renewable energy development for community empowerment : MHP Khaula Karya Renewable energy development through the franchise of rural energy service PPLH Renewable energy management in the context of environmental education for the community : MHP METI Forum of communication and information exchange for renewable energy development Asosiasi Hidro Bandung Technology development and renewable energy implementation : MHP Hivos Renewable energy implementation in the framework of community based development : Biogas for cooking and lighting Finance Institutions, Private and State Company Bank Syariah Mandiri Financing renewable energy development : biogas ADB Financing environmental project : MHP World Bank Financing of rural electricity programme in cooperation with Directorate General of Renewable Energy and Energy Conservation PLN Implementation and support the development of renewable energy : Minihydro, solar power, geothermal, wind power and biofuel Pertamina Implementation and support the development of renewable energy : biofuel

In addition to the above, the financing could come from fund Corporate Social Responsibility (CSR) of companies and State Owned Enterprises (SOEs) such as the construction plans by PT MHP Kalijaga East. Newmont Nusa Tenggara and the People's Independent Electricity program (LIMAR) by PT. PLN (Persero).

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4.3.3 Human Resources and Technology

In order to identify and provide human resources and technology needed to achieve the target of renewable energy development, the steps taken are:

a. Improving human resources competency in the field of renewable energy through education and technical training, organized by educational institutions and appropriate and accredited training; b. Provide community development fund in the field of renewable energy to educate human resources in project area; c. Improving the quality of human resources continuously to keep up technology development, especially renewable energy sector; d. Carry out research and development of renewable energy technologies, to ensure the sustainability of energy availability; e. Carry out energy research that focused on applied research as a follow-up of existing research by way of cooperation between research institutes, both national and international institutes such as ITB (Bandung Institute of Technology), BPPT (Agency for the Assessment and Application of Technology), Pusair (Hydro Research Center under Public Works Ministry) and P3TKEBT (Center for Research and Development of Electricity and Renewable Energy).

4.3.4 Detail Implementation Plan

a. Minihydro Power Plant

1) Encourage the implementation of the hydro power plant or minihydro power plant to improve the energy mix that is managed by PLN; 2) Increase the content of local technology on whole power plant components; 3) The private sector which are involve in the construction of hydro power plant or minihydro power plant have obligation to implement Corporate Social Responsibility (CSR) for local communities living around the power plant; 4) Creating a healthy and secure condition to support investment; 5) Government support of funding can be provided in the form of feed in tariff policy, investment and free import tax.

b. Micohydro Power Plant

1) Conduct data collecting and identification of small-scale hydro power utilization (pico, micro and mini) especially for rural and remote areas; 2) Increase feasibility study/detailed engineering design activities at potential location for microhydro development;

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3) Encourage the development of off grid microhydro power plant in areas which are not reached by PLN’s grid to increase the electrification ratio; 4) Encourage research, development and local manufacturing of microhydro power plant components; 5) Empowering local communities for productive end use that will increase the income level that involves the role of various parties; 6) Creating a healthy and secure condition to support investment; 7) Government support in the form of funding can be provided in the form of feed in tariff policy and investment loans. c. Solar Power

1) SHS and PV centralized are only given to areas that have no other local energy potentials to be developed; 2) Creating a healthy and secure condition to support investment; 3) Government support of funding can be provided in the form of feed in tariff policy, investment and free import tax. d. Geothermal Power Plant

1) Conduct an inventory and evaluation of the potential through an intensive exploration of the potential to change the status of speculative and hypothetical resource into a reserve and proved; 2) Development of geothermal potential for direct use (drying of agricultural products, etc.) and indirect (electricity generation); 3) Financing of the development of small-scale Geothermal Power Plant could come from government, IPP and local cooperatives; 4) The Government contributes indirectly through the provision of investment credit subsidies and tariffs are determined through a feed in tariff policy and subsidize; 5) Increase the level of local content on whole power plant components; 6) Creating a healthy and secure condition to support investment. e. Biogas

1) Identification of villages/sub villages which are ready for construction of biogas; 2) Coordinate extensively with the developer of biogas as Hivos; 3) Creating a healthy and secure condition to support investment; 4) Government support of funding can be provided in the form of feed in tariff policy, investment and free import tax. f. Biofuel

1) Making regulations concerning trade system and biofuels market;

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2) Improve the development of the utilization of Jatropha curcas as alternative fuels for electricity generation and household cooking fuel; 3) Encouraging research and development activities in the field of upgrading the quality of biofuels, assessment and application of blending systems and Jatropha curcas cultivation; 4) Implementation of integrated programs starting from good implementation of Jatropha curcas cultivation to ensure the continuity of raw materials; 5) Creating a healthy and secure condition to support investment; 6) Government support of funding can be provided in the form of feed in tariff policy, investment and free import tax. g. Biomass Power Plant

1) Use of wood as biomass must considering the sustainability concept of forest production; 2) To socialize intensively to the public regarding the use of agricultural wastes such as coconut shell and rice husk as fuel to generate electricity; 3) Creating a healthy and secure condition to support investment; 4) Implementation of the program "Forest as an Energy Reserves". h. Other renewable energy

1) Pioneering the development of new technologies such as wave energy and energy flows Ocean Thermal Energy Conversion (OTEC), and others; 2) Creating a healthy and secure condition to support investment; 3) Government support of funding can be provided in the form of feed in tariff policy, investment and free import tax.

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Bibliography

Carepi, Team. 2005. Regional Energy Profile. Mataram, Carepi Project Anonymous. 2010. The Statistics of West Nusa Tenggara Province. Mataram, Central Beureau of Statistic Anonymous. 2010. Annual Report of Energy Division. Mataram, Mining and Energy Provincial Office of West Nusa Tenggara Province Anonymous. 2009. Blue Print of One Million Cows Programme. Mataram, Animal Husbandry Provincial Office of West Nusa Tenggara http://www.fao.org/docrep/u2246e/u2246e02.htm http://www.jatrofuels.com/174-0-Energetic+Value+of+Jatropha.html

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