Microturbine Cogeneration Technology Application Project MCTAP Indonesia

Approach

Indonesia faces an ever-increasing demand for electricity. It is estimated that between 2000 and 2005, the demand grew 4.5 times. Since 1999, the Government of Indonesia has advocated for a gradual shift from diesel-based generation, and put its priority on alternative energies, including renewable energies. However, there are factors that impact the effective utilization of alternatives to oil.

Indonesia is now actively pursuing ways of producing energy cheaply and efficiently, and at the same time reducing national greenhouse gas (GHG) emissions. United Nations Development Program (UNDP) Indonesia in partnership with the Agency for the Assessment and Application of Technology (BPPT) is promoting a new technology: Microturbine Cogeneration Technology (MCT). MCT offers a double benefit to users: it produces energy more efficiently than a conventional diesel generator, and at the same time releases only a fraction of the CO2 emissions compared to the same conventional diesel generator. MCT generates about 0.16kg/kWh* of CO2 emission and helps saving up to 550 IDR/kWh** in comparison with the National Electricty Company (PLN). The project recently started to assess the possibility of widening up the diffusion of MCT by using other types of fuel such as biogas extracted from landfiils. Utilizing MCT as a way

to save energy in the industrial and commercial sectors is also envisaged and expeted to be followed by by BPPT and the Ministry of Energy and Mineral Resources. * Based on MCTAP emission audit at MCT demonstration units ** Depending on thermal technology being used

Results Technology assessment and MCT application development

UNDP provides technical expertise to address the interest of the industrial and commercial sectors in the application of MCT:

• Four new prospects of MCT applications identified and assessed on site for techno-economic and market feasibility (Park Lane Hotel, Sari Ater Hotel and Resort, Borobudur Hotel and Panasonic Factory)

• Two techno-economic feasibility studies of MCT with biogas extracted from landfills were completed: TPA Bengkala, in Buleleng, Bali represents a potential of 30kW electricity generation and TPA Gampong Jawa in Banda Aceh shows potential for commercial scale of MCT application.

Microturbine Cogeneration

Technology application with Compressed Natural Gas to celebrate

the anniversary of the National Gas Company (PGN) held at the National

Monument in Jakarta.

Site visit BPPT, Ministry of Environment, Fiscal Policy office of the Ministry of Finance, Banks and financial institution, Renewable Energy and Energy Conservation office of the Ministry of Energy and Mineral Resources at the MCT demonstration unit of PT Nipress, to formulate

the financial and policy support of Energy Efficiency in Indonesia (source: MCTAP documentation)

28/06/13

• MCTAP facilitated information exchange and market development between two MCT landfill gas distributors in Indonesia to follow up on the identifed techno-economic potential.  

• Lessons learned on technology transfer identified and expected to be transferred to other countries where supporting infrastructures and policies exist

MCT Demonstration and Market Development

Because MCT is a relatively unknown technology in Indonesia, MCTAP has prepared 5 demonstration units, deployed on site with industrial projects proponents:

• A total of 435 kW of MCT were installed, 155 kW energetic and 280 kW thermal, on four demonstration units (3 units of 30 kW in PT. Nipress, Tbk and PGN and 1 unit of 65 kW in PT. Hikari). Demonstration applications resulted in a total of 113.58 tonnes of CO2 emission reduction in Indonesia

• Energy and emission audits were conducted on PT. Hikari and PT. Nipress sites to reveal about 0.16 kg/kWh of CO2 emission, less than any gas power generation in Indonesia. MCTAP actively promoted this energy and emission audit to public, industries, institutions and related goverment body

• 892 visitors consulted the MCTAP database, setup online for external users, 1,326 times within 6 months. MCTAP also capacitated BPPT to continue database operation

• Four editions of the MCTAP Newsletter were released to improve information access about MCT by the public as part of a new strategy of promotion by MCTAP

• MCTAP promoted market development among customers of the National Gas Company (PGN) in partnership with PGN. MCTAP targeted customers from Surabaya at PGN gatherings and customers from Jakarta by demonstrating applications of Compressed Natural Gas for MCT at PGN’s anniversary

MCT Policy and Technical Support to MCT Financing

UNDP encourages actively the promotion of MCT in Indonesia. MCTAP aims for the creation of an enabling environment of adequate policies and regulations as well as removing impediments to a larger adoption of the technology:

• IDR 500 billion (±USD 50m) were allocated by the Fiscal Policy Body (BKF) of the Ministry of Finance to support EE & EC projects in 2013 as a result of MCTAP engagement’s in fiscal coordination

• Ministerial Regulation (Permen) No. 14/2012 on Energy Management comprising cogeneration implementation was issued by the Ministry of Energy and Mineral Resources

• In an effort to enforce minimization of air pollution, emission audits were carried out for both PT. Hikari and PT. Nipress MCT application sites and reveal emission levels within the standard set by the Ministry of Environment stated in Ministerial Regulation (Permen) No. 21/2008 about Source Emission Code Standard for Gas Turbine Power Plant in Indonesia.

Technical Support for Local MCT Industry

MCTAP targets a 25% reduction of the initial investment cost of MCT. Working towards this result involves creating appropriate financial incentives but also empower local MCT industries to produce quality system components:

• Two local manufacturers of heat exchangers were evaluated to develop Heat Recovery Units to be used for cogeneration.

• Three local engineering firms newly engage in MCT technical services and business (PT. Green Benua Energy, PT. Maxi Energy Utama and PT. Fajar Mas Murni), in addition to two local representatives of Capstone (PT. SMIT and PT. Serba Dinamik Indonesia)

• One local engineering contractor (PT. Indotehnik Agung Perkasa) was supported to install an MCT application in Borobudur Hotel, Jakarta

United Nations Development Programme Indonesia Menara Thamrin Building 8-9th Floor P.O.Box.2338 Jakarta 10250, Indonesia Email: media.id@undp.org Website: www.id.undp.org Contact: verania.andria@undp.org

We would like to recognize the many partners who have contributed to the project outlined in this publication, and thank the Global Environment Facility (www.thegef.org) for their financial contribution.  

United Nations Development Programme Indonesia Menara Thamrin Building 8-9th Floor P.O.Box.2338 Jakarta 10250, Indonesia Email: media.id@undp.org Website: www.id.undp.org Contact: verania.andria@undp.org

We would like to recognize the many partners who have contributed to the project outlined in this publication, and thank the Global Environment Facility (www.thegef.org) for their financial contribution.