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Project for the Master Plan Study of Hydropower Development in Indonesia The Republic of Indonesia Ministry of Energy and Mineral Resources PT PLN (Persero) Project for the Master Plan Study of Hydropower Development in Indonesia FINAL REPORT VOL. II MAIN REPORT August 2011 JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. ILD JR 11-019 The Republic of Indonesia Ministry of Energy and Mineral Resources PT PLN (Persero) Project for the Master Plan Study of Hydropower Development in Indonesia FINAL REPORT VOL. II MAIN REPORT August 2011 JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. ILD JR 11-019 Final Report (Main) Table of Contents PROJECT FOR THE MASTER PLAN STUDY OF HYDROPOWER DEVELOPMENT IN INDONESIA DRAFT FINAL REPORT VOLUME II MAIN REPORT Table of Contents ABBREVIATIONS CHAPTER 1 INTRODUCTION ................................................................................. 1-1 1.1 Background of the Study ....................................................................................... 1-1 1.2 Objectives of the Study ......................................................................................... 1-3 1.3 Study Area ............................................................................................................. 1-3 1.4 Counterpart Agencies ............................................................................................ 1-3 PART I MASTER PLAN STUDY CHAPTER 2 LAWS AND REGULATIONS, POLICIES AND ORIGINIZATIONS .................................................................................................................... 2-1 2.1 Indonesia Electricity Sector ................................................................................... 2-1 2.1.1 Indonesia Electricity Sector Outlook ....................................................... 2-1 2.1.2 Policies and Plans for Economy and Industry ......................................... 2-2 2.2 Laws, Regulations and Policies Related to Power Sector ..................................... 2-3 2.2.1 General Socio-Economic Development .................................................. 2-3 2.2.2 Energy Sector .......................................................................................... 2-5 2.2.3 Power Sector ............................................................................................ 2-16 2.3 Organizations ......................................................................................................... 2-31 2.3.1 Government Authorities .......................................................................... 2-31 2.3.2 PT PLN (persero) .................................................................................... 2-35 2.3.3 Other Electricity Business Utilities ......................................................... 2-38 CHAPTER 3 POWER SYSTEM DEVELOPMENT PLAN .................................... 3-1 3.1 Current Status of Power System ............................................................................ 3-1 3.1.1 Generation Facilities ................................................................................ 3-1 3.1.2 Electricity Supply and Demand ............................................................... 3-11 3.2 Existing Power Development Plan ........................................................................ 3-13 JICA Project for the Master Plan Study of - i - August, 2011 Hydropower Development in Indonesia Final Report (Main) Table of Contents 3.2.1 Overview ................................................................................................. 3-13 3.2.2 Demand Forecast ..................................................................................... 3-13 3.2.3 Generation Development Plan ................................................................. 3-40 3.3 Transmission Development Plan ........................................................................... 3-55 3.3.1 Trends of Transmission Facilities ............................................................ 3-55 3.3.2 Current Transmission Development Plan ................................................ 3-57 CHAPTER 4 HYDROPOWER POTENTIALS ........................................................ 4-1 4.1 General .............................................................................................................. 4-1 4.2 Projects Passed 3rd Screening in HPPS .................................................................. 4-1 4.3 Pumped Storage Projects in Java Screened in HPPS2 .......................................... 4-5 4.4 Projects of 5-10MW Class Screened in HPPS ...................................................... 4-5 4.5 Projects Finished for DD, FS or Pre FS ................................................................ 4-6 4.6 Additional Schemes Examined in This Study ....................................................... 4-8 CHAPTER 5 BASIC DATA FOR HYDROPOWER PLANNING ............................ 5-1 5.1 Topography ........................................................................................................... 5-1 5.2 Geology and Seismicity ......................................................................................... 5-2 5.3.1 Data Source ............................................................................................. 5-2 5.3.2 Preliminary Evaluation on Geology and Seismicity ................................ 5-3 5.3 Hydrology .............................................................................................................. 5-11 5.3.1 Data Source ............................................................................................. 5-11 5.3.2 Preliminary Evaluation on Low Flow ..................................................... 5-12 5.4 Project Cost and Benefit ........................................................................................ 5-21 CHAPTER 6 ISSUES IN HYDROPOWER DEVELOPMENT .................................. 6-1 6.1 Introduction ........................................................................................................... 6-1 6.2 Hydropower Projects Unrealized or Delayed ........................................................ 6-1 6.3 Institutional and Legal Issues in Hydropower Development ................................ 6-5 6.4 Institutional and Legal Framework to be Reinforced ............................................ 6-6 CHAPTER 7 HYDROPOWER DEVELOPMENT MASTER PLAN ..................... 7-1 7.1 Target for Hydropower Development ................................................................... 7-1 7.1.1 Review of Recent Hydropower Development ..................................... 7-1 7.1.2 Hydropower Projects in RUPTL ............................................................. 7-2 7.1.3 Hydro Potential and Hydro Capacity to be Developed ........................ 7-6 7.2 Development Scenarios ......................................................................................... 7-12 7.3 Project Classification ............................................................................................. 7-13 7.3.1 Framework of Project Classification ................................................... 7-13 JICA Project for the Master Plan Study of - ii - August, 2011 Hydropower Development in Indonesia Final Report (Main) Table of Contents 7.3.2 Natural and Social Environment .............................................................. 7-14 7.3.3 Other Criteria ........................................................................................... 7-18 7.3.4 Results of Screening ................................................................................ 7-19 7.4 Inspection of Development Scenarios ................................................................... 7-26 7.4.1 Hydro Development along Each Scenario ........................................... 7-26 7.4.2 Comparison among Scenarios ................................................................. 7-27 7.4.3 Conclusion .............................................................................................. 7-28 7.5 Hydro Development Master Plan .......................................................................... 7-29 7.5.1 Basic Policies on Formulating Master Plan ......................................... 7-29 7.5.2 Hydro Development Plan ........................................................................ 7-29 7.6 Transmission Development Plan and System Analysis ........................................ 7-32 7.6.1 Methodology ........................................................................................ 7-32 7.6.2 Transmission Development Plan and System Analysis ........................... 7-34 7.6.3 Preliminary Study for Pumped Storage Candidate in Sumatra Systen .... 7-61 CHAPTER 8 ENVIRONMENTAL AND SOCIAL CONSIDERATIONS .................................................................................................................... 8-1 8.1 Introduction ....................................................................................................... 8-1 8.2 Legal Framework of Environmental Administration ............................................ 8-2 8.2.1 Environmental Administration ................................................................ 8-2 8.2.2 Environmental Protection and management Law (No. 32/2009) ........... 8-3 8.2.3 Activities Needed to Conducted Environmental Impact Assessment ..... 8-4 8.2.4 Environmental Impact Assessment (AMDAL) ....................................... 8-5 8.3 Policy of Land Acquisition and Resettlement ..................................................
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