Helmi Najamuddin, PLN - Power Project Development Updates and Kalimantan's Potential in Supporting...

Power Project Development Updates and Kalimantan’s Poten7al in Suppor7ng the DMO

Helmi Najamuddin, Head of Coal Division – PLN, 3/Sept/2013, ibcasia, Balikpapan

CFPP Suralaya (1 x 625 MW)

CFPP Indramayu (3 x 330 MW)

CFPP Pacitan (2 x 315 MW) CFPP Kendari (2 x 10 MW) CFPP Barru (2 x 50 MW)

CFPP Lontar (3 x 315 MW) CFPP Rembang (3 x 315 MW)

CFPP Tj. Balai Karimun (2 x 7 MW)

CFPP Labuan (2 x 300 MW)

Table of Contents

1. Introduction to PLN 2.

3.

Coal Business and its derivatives

Coal Demand Projection for Local Use in 2013 and beyond 4.

5.

6.

Power Project Updates and Coal Consumption for PLN and IPP in Sumatera

Power Project Updates and Coal Consumption for PLN and IPP in Kalimantan

Power Project Updates and Coal Consumption for PLN and IPP in Sulawesi and East Indonesia

7.

8.

9.

Coal Price – HBA

Projected Coal Caloric value

Closing Remarks

1. Introduc7on to PLN

Corporate Structure Ministry of State Owned Enterprises (MSOE) Ministry of Energy and Mineral Resources (MEMR) Ministry of Finance (MoF) Ministry of the Environment NaBonal Development Planning Authority (BAPPENAS)

PT Indonesia Comnets Plus

TelecommunicaBons for the Electricity Sector

PT PLN Batubara

Coal Supplier for PLN

PT Prima Layanan Nasional Enjiniring Engineering and

ConstrucBon Services

PT PLN Tarakan

Regional Fully Integrated Electric UBlity

PT PLN Batam

Regional Fully Integrated Electric UBlity

PT Indonesia Power

Electricity GeneraBon

Government of Indonesia will con7nue to hold 100% of PLN

PT PLN (Persero)

Majapahit Holding B.V.

Financial InsBtuBon

Oversight

PT PLN Geothermal

Geothermal Energy GeneraBon

PT Pembangkitan Jawa Bali

Electricity GeneraBon

PT Pelayaran Bahtera Adhiguna

Shipping Ac7vi7es

Note: Excludes Joint Ventures.

PT Haleyora Power

Electricity Supplier

Subsidy for Opex

Margin for Capex

PT PLN (Persero)

§  INPUT:

§  Coal, Oil Fuel, Gas,

§  Electricity from IPP, etc.

Market Price

Public Service ObligaBon

5

§ OUTPUT:

§  Electrical Energy to support economic growth

Regulated Price

Government of Indonesia is to provide

Subsidy + Margin = Market Price – Regulated Price

6

Who are we ?

The biggest Indonesia’s State Owned Enterprise Company with USD 56 billion Assets

Total electrical generaBng capacity : 46.01 GW serving 48 million customers Of the total, 21.5 GW is CFPP (72% owned by PLN), require 64.1 million ton coal in 2013

INSTALLED CAPACITY PER DECEMBER 2012

Total Hydro 3,123 MW Geothermal 532 MW Steam-turbine

21,500 MW

Combined Cycle

9,224 MW

Gas-turbine 3,226 MW Diesel 2,033 MW Others 11 MW IPP 7,360 MW TOTAL 46,009 MW

Java-Bali Hydro 2,390 MW Geo 375 MW Steam-turbine

12,990 MW

Combined Cycle

7,156 MW

Gas turbine 2,035 MW Diesel 263 MW IPP 4,502 MW TOTAL 29,711 MW

NTB Diesel 292 MW Hydro 2 MW TOTAL 294 MW

NTT Diesel 218 MW Geothermal 1 MW Hydro 1 MW TOTAL 220 MW

Papua Diesel 246 MW Hydro 5 MW TOTAL 251 MW

Maluku Diesel other

270 MW 1 MW

TOTAL 271 MW

Sulawesi Hydro 220 MW Geothermal 60 MW Steam-turbine

37 MW

Gas-turbine 123 MW Diesel 936 MW IPP 297 MW TOTAL 1,672 MW

Kalimantan Hydro 32 MW

Steam-turbine

130 MW

Combined Cycle

60 MW

Gas-turbine

162 MW

Diesel 1,219 MW Others 6 MW IPP 56 MW TOTAL 1,665 MW

Sumatera Hydro 867 MW Geothermal 0 MW Steam-turbine 1,204 MW Combined Cycle

858 MW

Gas-turbine 1,057 MW Diesel 1,952 MW IPP 779 MW TOTAL 5,719 MW

PLN has an extensive generaBon poraolio with total installed capacity of 38,649 MW and IPP 7,360 MW.

Extensive GeneraBon Network as per December 2012

Sumatera Kalimantan

Sulawesi

Maluku Papua

NTT NTB Java-‐Bali

2. Coal Business and its Deriva7ves

Many Hats in Coal Business •  Miners, Contractors •  Sellers •  Buyers •  Traders •  Heavy Equipment Manufacturers •  Lawyers, Consultants •  Regulators (Government) •  Ship Owners / Ship Operators •  Charterers •  Bankers •  Ship Managers (Tech/Comm) •  Shipbrokers •  Ships agents, Stevedores •  Marine Insurance underwriters / Brokers •  …….. Etc.

Coal Supply Contracts

q What constraints does PLN have? q  LocaBon -‐ Coastal or inland ? -‐ Mine Mouth ?

q  TransportaBon -‐ Vessel, barge, rail, road, conveyor … -‐ Are there alternaBves in event of interrupBon ?

q  Storage capacity -‐ Does the plant have stockpile capability ? -‐  How many days storage ?

PLN’s Posi7on


q What does PLN want? q  Security of supply -‐ Diversity (More than one supplier) -‐ Reserves -‐ LocaBon

q  Best price and minimal price risk q Consistent quality matching specificaBon q  Reliability of delivery q Back-‐up supply for emergencies q  Strong contract

PLN’s Posi7on


q What constraints does the Seller have? q  LocaBon -‐ Access to market – infrastructure

q  Weather -‐ Wet season interrupBons -‐ Buffer stockpile capacity -‐ Buffer producBon capacity

q  TransportaBon -‐  Road, conveyor, rail -‐  Port faciliBes

Seller’s Posi7on


q What does the Seller want? q  Security of sales -‐ Long term contracts -‐ Diversity of customers -‐ Prompt payment

q  Market price -‐ Index-‐based adjustment

q  Unambiguous and business-‐friendly regulatory environment q  Strong contract

Seller’s Posi7on

3. Coal Demand Projec7on for PLN & IPP in 2013 and beyond

PLN’s Coal Supply Policy

To replace oil fuel by coal in fuel mix 2

To consume Low Rank Coal: abundant resource in Indonesia (40.4% LRC, 49.9% MRC, 9.7% HRC)

3

To increase coal quality: Clean Coal Technologies

4

To strengthen security of coal supply by : ü Long term supply contract

1

Fuel Mix 2005-‐2019 : Coal share to be increased

16

LNG

Geothermal Hydropower

Natural Gas

Coal

Oil

Fuel Mix

Hydro

17

Year Fuel Oil GAS LNG COAL

(10^9 litre) (bcf) (bcf) (10^6 ton)

2011 11.45 329.8 0.0 41.8

2012 7.56 337.8 59.6 53.2

Coal

4.8

14.8 18.2

24.7

33.8 38.9

16.2

24.5 25.3

35.0 35.0 35.9

2.9 2.6 6.3 6.6 7.8 7.8

35.8

50.4 53.1

66.3

76.6 82.6

23.8

41.9 49.7

2010 2011 2012 2013 2014 2015

4000 -‐ 4500 kCal/kg 4501 -‐ 5500 kCal/kg > 5500 kCal/kg Target Total Consump7on

Coal Demand by PLN + PLN’s Sub + IPP, 2010-‐2015 RealizaBon EsBmaBon *million tonnes

LRC Increased by 600% in 6 year

Coal Demand, Coal Contracted and

Coal Power Plant Capacity: PLN+PLN’s Sub + IPP

66.3

76.6 82.6

88.1

96.8

85.2 85.5 85.5 85.6 85.6

21.5

24.2 25.1

28.5 29.6

0

5

10

15

20

25

30

35

0

20

40

60

80

100

120

2013 2014 2015 2016 2017

GW Million Ton

Demand Contracted Capacity

Coal ConsumpBon Guidance By PLN + PLN’s Subsidiary + IPP

14.6 21.6 20.2 27.0 26.7 26.8 29.6 28.5 13.6

13.6 13.6 13.6 13.6 13.6 13.6 13.6

24.9 31.1 42.9

42.1 47.9 56.4 65.8 74.6

53.1

66.3 76.6

82.6 88.1

96.8

109.1 116.7

-‐

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2012 2013 2014 2015 2016 2017 2018 2019

Million To

nnes

IPP PLN's Subsidiary PLN Total

Jan s/d Feb s/d Mar s/d Apr s/d May s/d Jun s/d Jul s/d Aug s/d Sep s/d Okt s/d Nov s/d Des Rencana 4.35 8.59 13.04 17.48 21.93 26.38 31.07 35.86 40.46 44.69 48.91 53.14

Realisasi 3.89 7.77 11.79 15.93 20.4 24.82 29.64 33.74 38.12 42.99 46.35 49.71

0

10

20

30

40

50

60

Million To

nnes

Planning and RealizaBon of Coal ConsumpBon PLN+PLN’s Sub + IPP in 2012

(cumulaBve)

Total Target : 53,1 Milion ton Total RealizaBon up to Dec : 49,71 Milion Ton

Planning and RealizaBon of Coal ConsumpBon PLN + PLN’s Sub + IPP in 2013

(cumulaBve)

Total Target up to Dec : 66,3 Million ton Total RealizaBon up to July : 31,1 Million ton

Total Supply up to July 2013 : 31,10 Million ton

RealizaBon Coal Supply by Suppliers PLN + PLN’s Sub + IPP in 2013

4. Power Project Development Updates and Coal Consump7on for PLN and IPP in Sumatera

LocaBon of Coal Supplier for PLN LEGEND: 1. PT Lanna Harita Indonesia (LHI)

Kutai – East Borneo 2. PT Kideco Jaya Agung (KJA)

Pasir – East Borneo 3. PT Oktasan Baruna Persada (OBP)

Kotabara – South Borneo 4. PT Arutmin Indonesia (PT AI)

Satui – South Borneo 5. PT Exploitasi Energi Indonesia (PT

EEI)Tapin – South Borneo 6. PT Rizki Anugrah Pratama (PT RAP)

Tapin – South Borneo 7. PT Dwi Guna Laksana (PT DGL)

Banjar – South Borneo 8. PT Kasih Industri Indonesia (PT KII)

Barito Timur – South Borneo Tebo -‐ Jambi

9. PT Titan Mining Energy (PT TME) Kutai – East Borneo

10. PT Hanson Energy (PT HE) Ogan Komering Ulu, South Sumatera

11. PT Bukit Asam (PT BA) Tanjung Enim, South Sumatera

12. PT Golden Great Borneo (PT GGB) Lahat, South Sumatera

13. PT Kal7m Prima Coal (PT KPC) Sanggata, South Borneo

14.  PT Adaro Indonesia Kelanis, South Borneo

1

2

3

45

6

7

8

9

10

11

12

8

13

14

Outlook For PLN & IPP Coal ConsumpBon in Sumatera

Aceh

North Sumatra

Riau

West Sumatra

Jambi

Riau Archipelago

South Sumatra

Lampung

Bangka

Belitung

Nagan Raya 2x110 MW

CC : 560.000 MT

Lab. Angin 2x115 MW

CC : 786.000 MT

Ombilin (MRC) 2x100 MW

CC : 740.000 MT

Teluk Sirih 2x112 MW

CC : 764.000 MT Simp Blimbing (IPP) 2x100 MW

CC : 740.000 MT

Tarahan & New Tarahan 4x100 MW

CC : 1.480.000 MT

Tj. Kasam (IPP) 2x55 MW

CC : 463.000 MT

Bukit Asam (MRC) 4x65 MW

CC : 1.380.000 MT

Tj. Balai Karimun 2x7 MW

COD : Maret 2014

Pangkalan Susu 2x200 MW

COD : Maret 2014

Bangka Baru 2x30 MW

CC : 171.000 MT

Belitung 2x16,5 MW

COD : Juli 2014

Tenayan 2x100 MW

COD : Juli 2014

In Opera7on Construc7on

Mine Mouth Power Plants

CC : 4000 MT/MW

CC : Coal ConsumpBon per Year COD : EsBmated Commercial OperaBon Date MRC : 5000 kCal/kg (GAR)

Coal Supplier to Each Power Plants

Aceh

North Sumatra

Riau

West Sumatra

Jambi

Riau Archipelago

South Sumatra

Lampung

Bangka

Belitung

Nagan Raya CS : PLN BB, BBSN & EBL

Lab. Angin CS : PTBA,

KII

Ombilin (MRC) CS : PLN BB, PTBA, Local Teluk Sirih

CS : PLN BB, HE, BBSN & EBL Simp Blimbing (IPP)

Locals

Tarahan & New Tarahan CS : PLN BB, HE, PTBA,

KUB & DBS

Tj. Kasam (IPP) CS : PLN BB, KJA

Bukit Asam (MRC) CS : PTBA

Tj. Balai Karimun CS : PLN BB, KUB &

DBS

Pangkalan Susu CS : PLN BB, HE

Bangka Baru CS : PLN BB, BBSN

& EBL.

Belitung CS : PLN BB, BBSN

& EBL

Tenayan 2x100 MW

COD : Juli 2014


Mine Mouth Power Plants

CC : 4000 MT/MW

CS : Coal Suppliers PLN BB : PLN Batubara PTBA : PT Bukit Asam BBSN & EBL : Kons. Batara Batari Sinergi Nusantara & Energi Batubara Lestari KUB & DBS : Kons. Karya Utama Banua & Daya Bambu Sejahtera KII : PT Kasih Industri Indonesia KJA : PT Kideco Jaya Agung

Existing and Future Projects of Mine-mouth PP in Sumatra Ready for Tender = 2,600 MW

No Project Name Capacity Status COD

1 Bukit Asam 4 x 65 MW PLN, Exis7ng 1987

2 Ombilin 2 x 100 MW PLN, Exis7ng 1996

3 Simpang Belimbing 2 x 113.5 MW IPP, Exis7ng 2011-‐2012

4 Sumsel 5 2 x 150 MW IPP, Construc7on 2016 -‐ 2017

5 Sumsel 6 2 x 300 MW IPP, Abort -‐

6 Sumsel 7 2 x 150 MW IPP, PPA (Financing) 2017 – 2018

7 Sumsel 8 2 x 600 MW IPP, PPA (Financing) 2017 – 2018

8 Riau 2 x 300 MW IPP, Abort (No Price Agreement) -‐

9 Banjarsari 2 x 110 MW IPP, Construc7on 2015 -‐ 2016

10 Keban Agung 2 x 120 MW IPP, Construc7on 2015 -‐ 2016

11 Jambi 2 x 400 MW IPP, Pre-‐FS 2019 -‐ 2020

12 Sumsel 9 2 x 600 MW IPP, BidDoc issued on 2 Aug 2013 2018 – 2019

13 Sumsel 10 1 x 600 MW IPP, BidDoc issued on 2 Aug 2013 2018 – 2019

Total 6,747 MW

q Sumsel-‐8: 2 x 600 MW, 2016 q Sumsel-‐9: 2 x 600 MW, 2017 q Sumsel-‐10: 1 x 600 MW, 2018 Muara Enim

Mine Mouth Power Plants, using Low Rank Coal

X Bogor Converter

q  The purpose of Sumsel 8, 9& 10 is to supply Jawa-Bali System

q  PLN is responsible to develop T/L HVDC 500 kV line of about 520 kmr (“HVDC”)

q  The HVDC project will be financed by JICA

q  Project cost of the HVDC is about USD 2,3 billions to transfer power of about 3,000 MW

5. Power Project Development Updates -‐ Coal Consump7on for PLN and IPP in Kalimantan

Outlook For PLN & IPP Coal ConsumpBon in Kalimantan 2014

Asam-‐asam & New Asam -‐ asam 4 x 55 MW

CC : 926.000 MT

Embalut (IPP) 2 x 112,5 MW CC : 786.000 MT

Pangkalan Bun (IPP) 2 x 6 MW

CC : 64.000 MT Pulang Pisau 2 x 60 MW COD : Jul -‐ 14

Sanggau 2 x 7 MW

COD : Jan -‐ 14

Kal7m 2 x 110 MW COD : Oct -‐ 14

Berau 2 x 7 MW

COD : Aug -‐ 14

PLTGB Putussibau (IPP) 1 x 8 MW

COD : Mar -‐ 14

Tanah Grogot (IPP) 2 x 7 MW

COD : Oct -‐ 14


CC : Coal ConsumpBon COD: Commercial OperaBon date


Asam-‐asam & New Asam -‐ asam 4 x 55 MW

CS : PLN BB, Arutmin

Embalut (IPP) 2 x 112,5 MW

CS : PLN BB, Locals

Pangkalan Bun (IPP) 2 x 6 MW

CS : Kons. Cenko Pulang Pisau 2 x 60 MW COD : Jul -‐ 14

Sanggau 2 x 7 MW

COD : Jan -‐ 14

Kal7m 2 x 110 MW COD : Okt -‐ 14

Berau 2 x 7 MW

COD : Agt -‐ 14

PLTGB Putussibau (IPP) 1 x 8 MW

COD : Mar -‐ 14

Tanah Grogot (IPP) 2 x 7 MW

COD : Okt -‐ 14

CS : Coal Suppliers PLN BB : PLN Batubara


6. Power Project Development Updates -‐ Coal Consump7on for PLN and IPP

in Sulawesi and East Indonesia

Outlook For PLN & IPP Coal ConsumpBon in East Indonesia 2014

Amurang 2x25 MW

CC : 160.000 MT

Tawaeli IPP 2x15 MW

CC : 120.000 MT

Jeneponto IPP 2x125 MW

CC : 1.000.000 MT

Barru 2x50 MW

CC : 340.000 MT Kendari 2x10 MW

CC : 100.000 MT Ropa

2x7 MW COD: Jul-‐14

Endog & Jiranjang APBN

3x25 MW CC : 240.000 MT

Bima 2x10 MW

COD : Apr-‐14

Kupang 2x16,5 MW COD : Jul-‐14

Ternate/Tidore 2x7 MW

COD : Apr-‐14

Atambua 4x6 MW

COD : Sep-‐14

Ambon 2x15 MW

COD : Des-‐14

Sofifi 2x3 MW

COD : Agt-‐14 Jayapura 2x10 MW

COD : Des-‐14

Timika 4x7 MW

COD : Jul-‐14


CC : Coal ConsumpBon per Year COD : EsBmated Commercial OperaBon Date


Amurang 2x25 MW

CS : PLN BB, DGL, OBP

Tawaeli IPP 2x15 MW CS : PLN BB

Jeneponto IPP 2x125 MW

CS : PLN BB, ADARO, KIDECO, SSP

Barru 2x50 MW

CS : PLN BB, DGL OBP

Kendari 2x10 MW

CS : PLN BB, DGL, OBP Ropa

2x7 MW COD: Jul-‐14

Endog & Jiranjang APBN

3x25 MW CS : PLN BB, DGL,

OBP, RAP

Bima 2x10 MW

COD : Apr-‐14

Kupang 2x16,5 MW COD : Jul-‐14

Ternate/Tidore 2x7 MW

COD : Apr-‐14

Atambua 4x6 MW

COD : Sep-‐14

Ambon 2x15 MW

COD : Des-‐14

Sofifi 2x3 MW

COD : Agt-‐14 Jayapura 2x10 MW

COD : Des-‐14

Timika 4x7 MW

COD : Jul-‐14


COD : EsBmated Commercial OperaBon Date CS : Coal Suppliers

PLN BB : PLN Batubara DGL : Dwi Guna Laksana

OBP : Oktasan Baruna Persada RAP : Rizki Anugrah Pratama

SSP : Sumber Suryadaya Prima

7. Coal Price -‐ HBA

Weighted Average Coal Price Purchased by PLN Rp

/kg

219.75 230.82 230.75 251.55

335.81 338.76

489.23

732.32

659.71 695 702

618

-‐

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

8. Projected Coal Caloric Value

Projected Coal Caloric Value Trends in Indonesia

4800

4900

5000

5100

5200

5300

5400

5500

5600

5700

5800

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CV (a

db)

Year

Average Weighted CV 2011-‐2020

Source : Terry Gray, PT Britmindo, IHS McCloskey December 2012

9. Closing Remarks

1.  Indonesia electricity demand is sBll high (9.4% per year) thus need a huge addiBonal capacity of generaBon, transmission and distribuBon.

2.  For the next 10 years, the electricity supply in Indonesia is sBll relying on CFPP (Coal Power Plant) including Mine Mouth PP, it is because the availability of coal abundant as primary energy and cost of producBon is relaBvely cheap compare others power generaBon, but sBll taking into account of environmental sounds.

3.  PLN is the biggest coal buyer in Indonesia i.e.: 66.3 million Ton in 2013, and >100 million Ton/year aqer 2018

CONCLUSION -‐ 1

4.  Coal Opportunity businesses in Indonesia: •  Local coal mining closest to each Power Plant locaBon,

•  Coal Up grading of Clean Coal Technologies,

•  And related businesses.

CONCLUSION -‐ 2

Further contact : [email protected]

Phone: +62 812 122 0450

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