pt. austindo aufwind new energy

Potentiale und Geschäftsmöglichkeiten aus

der Sicht eines indonesischen IPPs.

PT. Austindo Aufwind New Energy

Thomas Wagner

• Director PT. Austindo Aufwind New Energy

• Head of Energy Working Group, EuroCham Jakarta

• Founding member of Asosiasi Biogas Indonesia “ABgI”

• Since 2006 in renewable energy project development

• Office in Jakarta since 2008, full time since 2011

Speaker

PT. Austindo Aufwind New Energy

• First grid connected biogas plant in Indonesia

• First and only biogas IPP in Indonesia

• Renewable Energy subsidiary of ANJ Group

ANJ Group PT. Austindo Nusantara Jaya Tpk.

• 4 operating palm oil mills and several under development

• 1 operating sago starch mill and more under development

• >100 000 ha planted and plantable land

• Listed at Jakarta Stock Exchange

Speaker

EuroCham

• Advocacy arm of the European bilateral chambers such as

AHK EKONID, BritCham, INA, IFCCI and IBAI

• Energy Working Group is representing interest of Oil & Gas,

Power Generation and Equipment, Renewable Energy and

Energy Efficiency sector member companies

Speaker

Indonesia‘ first biogas IPP

Belitung:

Built as CDM plant – but with power generation in mind

• 60 tph palm oil mill

• Design: AANE

• CDM registration 2009

• 1,8 MW from Q4-2013

Indonesia‘ first biogas IPP

Indonesia‘ first biogas IPP

The plant in March 2012

Indonesia‘ first biogas IPP

The plant in March 2012

Indonesia‘ first biogas IPP

Power house Trafo room Radiator area

Inside the engine room Inside the PLN metering panel room

Indonesia‘ first biogas IPP

Indonesia‘ first biogas IPP

Bupati Dr. Basuri: „A big step towards Eco Regency East Belitung“

Rida Mulyana (Dirjen EBTKE): „…the first biogas IPP in Indonesia“

Ari Wardana (GM PLN): „We will save 2.5 mio USD each year“

Rida Mulyana (Dirjen EBTKE): „Expecting a new biomass tariff soon“

Indonesia‘ first biogas IPP

General Environment

• Electrification and capacity expansion national proprity

• Many regions generating at high cost – renewbles competitive

• Sincere effort towards renewables

• Tariffs updated twice already, awaiting next revision

• 19-23% targets

• Included in RUPTL (PerMen ESDM 20-2016 / PLN RUPTL 2015-

2025)

• Import facilities

• IDR obligations

• Trend towards protectionism

• Negative Investment list (PerPres 44-2016)

• Local content regulations (PerMen Industri 2012-054)

• Limitations for foreign engineering and contracting (PerMen PUPR

3/2016)

Project Concepts

• Methane capture

• CDM irrelevant

• Methane capture obligation expected

• Benefits for ISCC certified plantations

• Pre-Composting

• Composting is increasingly popular

• Prior digestions to reduce composting cost

• Waste Water Treatment

• Increasingly strict waste water requirements

• Captive Power

• High cost of diesel and lack of gas infrastructure

• Unreliable or unavailable power grid

• Captive Power with Excess Power to PLN

• Currently only annual contracts without regional factor

• More easy to obtain (no long term PLN commitment)

• Expected to be negotiable in the future (term and price)

• Power Palm Oil Mill

• efficient high(er) pressure boilers and fully condensing turbines

• Huge potential but still skeptical market

PLN as an offtaker

• IDR Payments

• Power is paid in Indonesian Rupiah. New tariffs are expected to

be USD linked

• Reliability

• PLN is generally paying on time within 2-4 weeks

• Very cooperative in Bangka-Belitung

• A case in North Sumatra is shedding doubts (APR)

• Procedural

• Billing and any other affairs are highly procedural

• Billing requires collection of several signatures

• Decision making

• Lower levels are extremely reluctant to make independent

decisions; long approval times

• Grid access and contracting

• Highly regulated and procedural

• Grid study and several government approvals required

• FOCUS ON AREAS WITH POWER DEFICIT

Construction

• Logistics and Import

• Forwarding within Indonesia about same cost as to Indonesia

• Large containers or heavy transport often difficult

• Use Customs, Import Tax and VAT exemption facilities

• Masterlist not flexible

• Holidays and rainy season

• Avoid end of Ramadan and rainy seasons (difficult to predict)

• Workmanship (see photos)

• Expect heavy site supervision

• Great talent for improvisation

• Pre-fabricated components are advisable but should be offered as

option to avoid cost-shock

• Parts, tools and heavy equipment

• Heavy and special tools often difficult to source

• Limited supply of high quality components

Construction

• Gas tight Pipe Penetration

Construction

• Outside cabinets with missing seals

• Beware of redents and lizards!

Construction

• Material handling

Construction

• Manual labour replacing heavy equipment

Construction

• Talent for improvisation (heavy equipment sometimes unavailable)

Construction

• Safety First

Operations

• Grid Stability

• Can cause significant downtime. But new PPA draft may include take

or pay clause

• Consider load bank or two way grid connection. Else impact on gen-

set maintenance (several load rejections per day).

• 24h Staffing

• Is standard expectation

• Needed to compensate for lack of near-by third party service

• Maintenance

• Ensure local spare part availability

• Providers may need days to reach site

Biogas Competitors with References in Indonesia

• Organics – British with office in Jakarta and manufacturing in

Thailand.

• ADI – New Zealand based, well known for large lagoon systems

• Biotec – Belgian with world wide projects. Mostly lagoons

• Asia Biogas – Thai based with office in Jakarta. Mostly lagoons.

• KIS Group – Indian with office in Jakarta. Tank systems. Strong

marketing. Positioning as high end.

• Global Water Engineering – Belgian with world wide references.

Tank systems.

• AES Alternative Energy Solutions – one of the first players in

Indonesia; started with low-tech lagoon systems but evolved

• Wabio – Focussing on difficult feed-stock. Represented in Indonesia.

First large scale EFB plant.

• Pasadena – Local engineering company. Close government ties.

Lagoon systems and developing EFB solution

Summary

• Much potential, not easy to access

• Focus on more challenging biomass (e.g. EFB, MSW)

• Involve a local partner

• Focus on regions with high tariff factor

• Expect long poject lead times

• Carefully explain value (e.g. OpEx, low maintenance etc)

Further Support

• GIZ - LCORE Program

Industry contacts, biomass potential studies, PLN and authorities

• USAID - ICED II Program

Feasibility studies, PLN communication, general expertise

• EKONID - German Chamber of Commerce in Indonesia

Market entry, Industry contacts, regulatory insights, seminars

• EuroCham – Energy Working Group

Industry contacts, advocacy, government relations, forums

• ABgI – Indonesian Biogas Association

Industry contacts, advocacy, forums

• APLIBI – Indonesian Association of Biomass Power Generators

Open to Power Purchase Agreement holders, advocacy, industry

contacts, forums

• BKPM – Indonesian Investment Coordinating Board - European Desk

Market entry, Single Window Licensing, regulatory advice

• Ferrostaal

export financing structures and representation

• P.R.I.M.E. Consultancy

Market entry, market studies

Thank you very much

Thomas Wagner

Director – PT. Austindo Aufwind New Energy

thomas.wagner@anj-group.com