Attachment 1 Proposal for The Construction of Power Plant Using Non-marketable Coals Contents Figures .............................................................................................................................................ii Tables..............................................................................................................................................iii 1 Survey on Power Infrastructure in the Province of East Kalimantan....................................... 1 2 Power Supply and Demand...................................................................................................... 6 3 Review of Fuel for Power Generation ................................................................................... 12 4 Selection of Power Plant Construction site............................................................................ 18 5 Non-Marketable Coal Transportation Cost ............................................................................ 23 6 Investigation of Power Generating Capacity ......................................................................... 25 7 Load Flow Analysis ............................................................................................................... 27 8 Coal Handling System ........................................................................................................... 30 9 Power Plant Concept.............................................................................................................. 31 10 Outline of Power Plant....................................................................................................... 33 10.1 Investigation of the Climatic Conditions for Design..................................................... 33 10.2 Investigation of Coal Mixing......................................................................................... 35 10.3 Boiler Specifications......................................................................................................36 10.4 Review of Combustion System ..................................................................................... 37 10.5 Air Supply System......................................................................................................... 38 10.6 Combustion Gas Control ............................................................................................... 39 10.7 Desulfurization in the Furnace....................................................................................... 39 10.8 Steam Turbine System................................................................................................... 40 10.9 Condenser System ......................................................................................................... 40 10.10 Generator and Single-line Drawing............................................................................. 40 10.11 Cooling Water System ................................................................................................. 41 10.12 Limestone Feed System............................................................................................... 42 10.13 Wastewater Treatment System..................................................................................... 42 10.14 Ash Treatment System................................................................................................. 43 10.15 Central Control Room and DCS System ..................................................................... 46 11 Investigation of Internal Power Consumption ................................................................... 47 12 Heat Balance Analysis ....................................................................................................... 48 13 Power Plant Plot Plan......................................................................................................... 49 14 Power Transmission Line Study......................................................................................... 50 15 Economics of the Proposed Power Plant ........................................................................... 51 15.1 ODA-based Feasibility Study........................................................................................ 51 15.2 IPP-based Economics Study ...................................................................................... 54 15.3 Economic IRR (without Tax)......................................................................................... 56 16 Cement Market...................................................................................................................58 17 Environmental Performance Data...................................................................................... 60 18 Schedule............................................................................................................................. 61 19 Further Works .................................................................................................................... 62 Attachments ................................................................................................................................... 63 i Figures Fig. 1 Service Area of PT. PLN (PERSERO) wil. KALTIM ............................................1 Fig. 2 Mahakam 150 kV Transmission System 2006........................................................3 Fig. 3 Daily Curve of System Mahakam March 3rd 2005 .................................................5 Fig. 4 Aging of Diesel Power Generator Mahakam Systems............................................6 Fig. 5 Diesel Generator Retirement Program Mahakam System ......................................7 Fig. 6 Locations of New Power Plants............................................................................10 Fig. 7 Power Supply and Demand Forecast .................................................................... 11 Fig. 8 Non Marketable Fine Coal Ash Contents .............................................................13 Fig. 9 Non Marketable Fine Coal Sulfur Contents..........................................................13 Fig. 10 Non Marketable Dirty Coal Ash Contents ..........................................................15 Fig. 11 Non Marketable Dirty Coal Sulfur Contents.......................................................15 Fig. 12 Power Plant Site Selection..................................................................................20 Fig. 13 Power Plant Site Selection-PT Bukit Baiduri .....................................................21 Fig. 14 Site for Power Plant Construction Bukit Baiduri Energi Coal Mine ..................22 Fig. 15 Non Marketable Coal Gathering Cost.................................................................23 Fig. 16 Proposed Fuel Supply System ............................................................................24 Fig. 17 Fuel Choices Available in East Kalimantan (2006 September) ..........................26 Fig. 18 Single Line Diagram System Mahakam Extension (10 Year Plan in 2006) .......27 Fig. 19 Single-Line Diagram Mahakam System (Revised Ten Year Plan 2006) ............29 Fig. 20 Coal Handling System ........................................................................................30 Fig. 21 General Idea of the Boiler Selection...................................................................32 Fig. 22 Average Ambient Temperature (1982-2004 Samarinda City).............................33 Fig. 23 Max. Ambient Temperature (1978-2005 Samarinda City)..................................34 Fig. 24 Average Relative Humidity SAMARINDA (1982-2004) ...................................34 Fig. 25 Fuel Cost for Power Generation .........................................................................36 Fig. 26 Water Supply System 2x50 MW Mahakam Project............................................41 Fig. 27 Cooling Tower Water Balance 2x50 MW ...........................................................42 Fig. 28 Waste Water Treatment .......................................................................................43 Fig. 29 Circulated Fluidized Boiler 50 MW Ash Recovery ............................................44 Fig. 30 Coal Ash Utilization............................................................................................44 Fig. 31 Synergy within Industries ...................................................................................46 Fig. 32 Proposed Transmission Line Route.....................................................................50 Fig. 33 Equal Amortization Calculation (Principal Payment and Interest Payment) ......53 Fig. 34 Tonasa Cement Supply System (Kalimantan /Surawesi Area) ...........................58 Fig. 35 Tonasa Cement Distribution System in Samarinda Area ....................................59 ii Tables Table 1 Existing Power Generators Power Supply............................................................2 Table 2 Tariff 2004 ............................................................................................................3 Table 3 Power Demands 2006 June ..................................................................................4 Table 4 PLN Power Supply Plan (10 Years) 2006.............................................................7 Table 5 PLN Power Supply Plan (10 Years) Reviewed Dec.2006 ....................................9 Table 6 Transmission Grid Extension Plan .......................................................................9 Table 7 Power Supply