power generation
& energy electricity issues in
Indonesia
Iwan Agung Firstantara
GM PT PLN (Persero) Unit Pembangkitan Jawa Bali
Thermofluid VI 2014
Yogyakarta, April 29, 2014
Gajah Mada University
About
Speaker
@ GM_UPJB
Iwan Agung Firstantara was born in Jogjakarta, on October 1969. He
graduated from Gajah Mada University with a major in Mechanical
Engineering in 1993, and Master of Management also in the same
University.
Iwan is a General Manager of PT PLN (Persero) Unit Pembangkitan
Jawa Bali, one of PLN’s Strategic Business Unit that respondsible for
the Operation & Maintenance of 14 Power Generation Unit across
Java-Bali Interconecting System (making it the biggest total asset
compared to IP, PJB &IPP)
1
2
3
4
Macro Economic PerspectiveFacts of Indonesia’s Economic Situation
Indonesia’s Energy OutlookEnergy current Trends and Challenge
Power Generation issuesFast Track Program, Energy Mix, & Environment-Efficiency
How technology solve Eletricity’s IssueDeal with Capacity & Efficiency matters
Macro Economic’s PerspectiveFacts of Indonesia’s Economic Situations
Images taken from http://hqwide.com/
#Jakarta View #Wisma46
#BNITower
comes to your mind
Indonesia?Wh
at when you think of
Images taken from http:// globe-walls .com/
#HelloJakarta #Monas
#Istiqlalmosque
Images taken from http://listofimages/
Biggest Countryi n S o u t h E a s t A s i a
1 7 . 0 0 0 i s l a n d s3 . 1 m i l l i o n s q . k m o f s e a1 . 9 m i l l i o n s q . k m o f l a n d2 4 7 m i l l i o n i n h a b i t a n t s ( 2 0 1 2 )
#RajaAmpat #Beach
#BeautifulIndonesia
Images taken from http://wallpapersus
Biggest Economyi n S o u t h E a s t A s i a
G D P $ 8 7 8 b i l l i o n ( 2 0 1 2 )
G D P g r o w t h 6 , 2 % ( 2 0 1 2 )
I n f l a t i o n 4 , 3 % ( 2 0 1 2 )
#Jakarta@Night #Pancoran
#Patung Dirgantara
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013**
6,7
8
7,8
6
8,5
6
9,3
3
10
,48
12
,48
14
,82
17
,29 21
,36
23
,88
27
,03 30
,66 33
,53 37
,54
GDP
Source : BPS
Capita( m i l l i o n r u p i a h )
GDP
Source : BPS
Consumption
Government
Investment
Stat Discrepancy
X - M -2 %
5 %
32 %
9 %
54 %
o f 2 0 1 3
The BIG growth of Indonesia’s GDP was
driven primarily by domestic consumption“
Emerging middle class in
Indonesia
Middle- & High- class inIndonesia has rose 5times higher in the last25 years
Source : BI (2013) Images taken from http://teropongbisnis.com/
Indonesia’s middle-class
proportion:
Yellow: $ 2-4/ day
Source : BI (2013)
Indonesia’s Energy OutlookEnergy Current Trends & Challenge
Images taken from http://wallsave.com/
Primary
Source : BP Statistical Review of World Energy 2011 & World Economic Outlook Database April 2011, IMF
in Some Country
Intensity
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Energy Consumption
Capita( B O E / C a p i t a )
3,4
6
Source : BPS
3,3
4
2,9
8
2,5
8
2,5
6
2,4
3
2,4
7
2,4
8
2,4
1
2,2
7
2,3
2
2,2
8
11 11 12 13 15
17 18 21
23 25
27 28
34 36 37 36
40 42 44
46 48
46
51 55
31 33 34
36 39
41 44
47 50
55
60
65
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Business Industry Household
Electricity
Consumption(in TWh)
Source : EMRPLN divided its customer into 5 segments: (1) Business, (2) Industry, (3) Household, (4) Social, (5) Government
Images taken from http://globeimages.net/
#JakartaView #BunderanHI
#MonumenSelamatDatang
Since 2007Household has outreach the electricity
consumption among other PLN’s customer segments
Energy demandhas been increasing faster than economic development and population growth
Images taken from natgeo society
Electricity Shortage More than 70-80 million people
lack access to electricity
Images taken from http://phototony.com/
1980 1985 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012
Electrification Ratio( p e r c e n t )
73 76
67
66
65
63
62
57
43
28
16
8
Source : EMR
Highest : Jakarta (99,99%)Lowest : Papua (35,89%)
Electricity is heaviliy subsidisedand currently customers pay forelectricity at far below marketprice.
Reliance on Subsidies
Images taken from natgeo
Their estimated cost to government in 2013 is Rp 284 trillion and increasing to Rp 328,7 in 2014 (state budget plan).
subsidies have created a massive burden on the state budget.
Fuel &
Images taken from http:// 3.bp.blogspot.com/
Electricity
Source : Ministry of Finance
60 57 57 53 57 55 51 50 49 48 47 48
13 15 15 19 17 19 23 27 23 23 24 27
23 22 24 24 21 21 22 19 24 25 23 21
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Oil Coal Gas Hydropower Geothermal Biofuel
Primary Energy SupplyExclude Biomass
(in percent)
Source :CDI-EMR
Driven by three main things:
1. Electrification programTo support government program to accelerate electrification ratio
2. Economic growthTo support manufacturing and service companies to produce products and services
3. Captive taking overMeet large consumer demand, to take over captive and to meet large customer demand
Demand of electricity is expected to grow fast
Images taken from http://touristrack.com/
Power Generation IssuesFast Track Program, Energy Mix, & Environment-Efficiency
#LabuanCFSPP
#FTP-1 #2x300MW
PLN P3B as “System Owner”and “Market Operator”
DistributionPower Generation (PLN or IPP)P3B as Transmission Provider
Primary Energy
Power Generation
Transmisi DistributionEnd
Customer
Availability of Primary Energy: quality, quantity,time, cost
Availability: reliable, safe, efficient, quality
Availability: reliable, safe, efficient, quality;Economic
optimisation;
Availability: reliable, safe, efficient, Sufficiency &
quality of supply
Services: simple, easy, quick, quality;
StandardService
StandardService
StandardService
StandardService
Standard of Public
Service
Electricity Supply Chain
To meet Indonesia’s growing demand
Issue#1
#RembangCFSPP #FTP-1
#SubcriticalPulverized
PLN is mandated to implement Fast Track Program (FTP) for capacity expansion
FTP Phase 1 :
42 Coal-Fired Steam Power Plants of PLN’s Project• 10 power plants with capacity of 6.900 MW in Java-Bali • 32 power plants with 2.252 MW outside Java-Bali
FTP Phase 2 :
93 power plants (Hydro, Geothermal, & Coal-Fired Power Plant)• 21 power plants of PLN’s Project • 72 power plants of Partnership Project
#TjAwar-awarCFSPP
#CoalHandling #StackerReclaimer
Issue#1
Chinese’s Power Plants (FTP-1)
are cheaper than Japanese’s PP, but the quality has likely not yet proven.
PLN also suffer from project completion delay.
#PalabuanRatuProject
#Construction #FTP-1
Issue#1
Even though
The FTP has improved thecompany's internal cash flowsand meet the 9% of electricitydemand growth.
It has also minimize the Fuelcontribution in PLN Fuel Mixfrom 22% in 2009 to 12% in2013.
Images taken from http://dl.bizhi.sogou.com/
Issue#1
2%
58%18%
6%
16%
2019
Fuel Coal Gas Hydro Geo
36%
35%
17%
9%
3%
2008
Fuel Coal Gas Hydro Geo
Source :RUPTL 2010-2019
Fuel Mix
Issue#2
1% replacement of Fuel into Coal will generate financial efficiency up to Rp 1,74 T (in 2012) .
Indonesia’s electricity is still rely on coal-based power plants
Contribute approximately 58% of the total electricity generated
Issue#2
Images taken from http:// ncealliance.com/
Environment
Efficiency
Issue#3
Reciprocal Relationship in
coal power plant
Images taken from http://ak2.picdn.net /
Clean Coal Technology
Every option capable of reducing emissions upstream, downstream, or within the power generation (energy conversion) process
Issue#3
For new power plants
Images taken from http:// saistrip2010.webatu.com /
Could consider this following options:
#IGCC #CleanCoalTech
Supercritical & Ultra-supercritical (USC) pulverized coal technology
Circulating fluidized bed combustion (CFB)
Integrated gasification combined cycle (IGCC)
Issue#3
For existing power plants
Could initiate rehabilitation & recondition, to:
Improve efficiency
Decrease hidden capacity
#MuaraKarang #CCPP
Issue#3
How Technology Solve Electricity IssuesDeal with Capacity and Efficiency matters
Images taken from http:// www.iorise.com /
Efficiency(%)
39
37
35
33
1 2 3 4 5 6 7 8
Lifetime(Years)
Annual Inspection
SI SI SI SIME SE MERehabilitationRecondition
Restore
New Technology
Improve
100
75
50
25
Capacity
(%)
Efficiency & capacity degradation
How to deal with Capacity & Efficiency matters?
Capacity:• Coal Mixing• Coal Drying
Efficiency:• Tiny-oil Burner
• Heat Balance modelling
#PalabuanRatu #Construction
#FastTrackProgram
Coal mixing
the process of blending two different typesof coal (low & medium range coal) to obtaina desired efficiency/ load profile.
Heating valueLow Range Coal = + 4.200 kCal/kgMedium Range Coal = + 4.900 kal/kg
Coal layering
The process of placing the med range coalat specific boiler burner layer to obtain adesired efficiency/ load profile.
Coal dryingThe process of heating the coal feed to get a dry coal feed and
increase coal quality
Is being constructed at Labuan & Lontar CFSPP
Expected to increase coal quality up to 1000 kCal/kg
Images taken from http:// carzz.co /
Tiny-oil burner
A modified boiler burner to obtainless fuel oil consumption.
Could reduce the fuel consumptionup to 85% (@Labuan CFSPP).
Original
burner
Tiny burner
Heat balance
modellingImplemented through a Gatecycle, heat balance modelling discover all
of plant’s main equipment and predict the modelling.
The modelling help the management to develop more accurate Root Cause
Failure Analysis (RCFA).
Images taken from http:// st.gdefon.ru /
PLN Generation Challenges
Heat Rate Comparison in 2013( i n k C a l / k W h ) )
Tech challenge
Challenge#1
TJB (Non-FTP)
IMY(FTP)
2.732
2.403
Turbine
efficiency
improvement
There has been no significant breakthrough on turbine efficiency improvement
Challenge#2
Images taken from http://deltatest.de /
Heat Balance
Modelling
Challenge on:• Accuration• HR Competency• Alternative model
Challenge#3
Images taken from http:// img0.mxstatic.com /
Source :World Bank TeamPBR (Performance Based Regulation) is given by the Government to determine PLN Allowed Revenue.
Challenge#4
EpilogueEfficiency improvement in Power Generation represent the
largest opportunities in reducing subsidies, where thermofluid takes the most improtant role.
#Sunset #Fisherman
#BeautifulIndonesia Images taken from natgeo
An institution to bridge the interest between business (power generation) and universities has not yet established.
Images taken from http://austinareaphoto.com /
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