Country paper: Indonesia

Biomass for Electricity

Generation
Dadan Kusdiana
Directorate General of Electricity and Energy Utilization
Republic of Indonesia
Introduction
Biomass available in all part of the
country;
Varied in different geographical location;
Generally, the use of biomass is still in
traditional activities;
Biomass in the form of residue and waste
is not utilized yet.
Biomass energy
Energy form:
Solid
Direct combustion, gasification, pellet
Liquid
Biodiesel
Bioethanol, biomethanol
Biofuel
Gas
Biogas
Resource:
Forestry
Agro-industrial waste
Crop residues
Municipal city waste
Biomass energy technologies
currently being developed
Cooking stove
Gasification and CHP generation
Biodiesel
Biogas

Policy developments for
biomass
Promoting Green Energy Policy
Priority in utilizing local energy resources


Biomass programmes
Short term (5 years)
Investment
Promoting renewable energy programmes to financial
institutions
Simplifies credit procedures
Microfinance
Developing public-private partnership
Fiscal and tax incentives
Fiscal incentives (energy royalty, interest free loan)
Tax incentives (VAT, luxury tax, etc)
Energy pricing
Continue to remove energy subsidies
Premium pricing for renewable energies
Information
Research and development

Biomass programes
Long term (up to 20 year)
Non-fossil fuel obligation
Mandatory in utilizing environmentally-
friendly technologies
Financial institution for renewable energy
projects
National technical know-how on
biomass
Ministry of Energy and Mineral Resources
Directorate of New Renewable Energy and Energy
Conservation
Research and Development Center for Energy
Technologies and Electricity
Agency for Assessment and Application of
Technology
Energy Technology Laboratory
Engineering Center


Level of national awareness and acceptance
Government has decided to put at least 5%
of national electricity demand produced
from renewable energy including biomass
Kyoto Protocol has been ratified; CDM
project as well as developers begin to
growth
ISO14002 in relation with renewable
energy utilization; the use of biodiesel
Sources Potential
Installed Capacity
Hydro 75,000 MW 4,200 MW (6 %)
Geothermal 27,000 MW 802 MW (4 %)
Mini/Micro Hydro 459 MW 64 MW (14 %)
Biomass 49,810 MW 302 MW (6 %)
Solar Energy 4.8 kWh/m
2
/day 5 MW
Wind Energy 3-6 m/sec 0.5 MW
Total 5375 MW
Note:
1. Operating time is 24 h/d for biomass, biogas, geothermal and micro hydro, 8 h/d for solar PV and wind
2. Total land area for wind power generation per unit is 250 x 250 m2
3. Total potential area for solar generation is equivalent to total area of Indonesia
4. Total geothermal potential was based on the sum of proven reserves, expected and speculative possible
and hypothetical reserves
5. Wind energy potential as well as installed capacity was based on generating capacity of 20 kVA (15 kW)
Renewable energy status
Potential for biomass technologies in
selected industries
Type of industry Mill size
Capacity of
CHP
technology
Biomass potential for power
generation
1. Saw mills 1000-3000 m
3
/y 40-100 kWe
0.6 m
3
wood waste/m
3
sawn
timber
~ 130 kWh/m
3
sawn timber
2. Ply wood mills 40 000-120 000 m
3
/y 1.5 3 MWe
0.8 m
3
wood waste/m
3
plywood
~ 200kWh/m
3
plywood
3. Sugar mills 1000- 4000 TCD 3-10 MWe
0.3 t bagasse/t sugarcane
~ 100 kWh/t sugar cane
4. Rice mills
< 0.7 t/h
>0.7 t/h
30-70 kWe
100-300 kWe
280 kg husk/t paddy
~ 120 kWh/t paddy
5. Palm oil mills 20- 60 t FFB/h
0.2 t EFB/t FFB
0.2 t fibre/t FFB
70 kg shells/t FFB
~160 kWh/t FFB
Note: TCD= tones of Cane per day; FFB= Full Fruit Bunches; EFB= Empty Fruit Bunches.
Source: ZREU (2000)
Level of potentially available biomass residues for power
generation
Biomass Main region
Production
(million
ton/year)
Technical energy
potential (million
GJ/year)
Remarks
Rubber wood Sumatera, Kalimantan,
Java
41
(replanting)
120
Small logs d <10 cm
Big and medium logs are used as fire wood in
brick and roof tile industries: price 20,000-
30,000 IDR/m3
Logging residues Sumatera, Kalimantan 4.5 19
Sawn timber residues Sumater, Kalimantan 1.3 13
Residues of factories are often used as fire
wood by local communities, residues available
for free
Plywood and veneer
production residues
Kalimantan, Sumatera,
Java, Papua, Maluku
1.5 16
Sugar residues Java, Sumatera, South
Kalimantan
Bagasse: 10
Cane tops: 4
Cane tissues:
9.6
78
Bagasse is generally used in sugar factories
(90%)
The use of cane tops and tissues needs to be
investigated
Rice residues Java, Sumatera,
Sulawesi, Kalimantan,
Bali, Nusa Tenggara
Husk: 12
Bran: 2.5
Stalk: 2
Straw: 49
150
Stalk and straw are generated at the field and
generally burnt, in some areas used for feeding
or raw material for paper industries
Husks often burnt uncontrolled
Coconut residues Sumatera, Java,
Sulawesi
Shell: 0.4
Husk: 0.7
7
Residues are generated decentralized and
usually left on the plantation field. Largely
used as fire wood and for the production of
charcoal
Palm oil residues Sumatera, new areas:
Kalimantan, Sulawesi,
Maluku, Nusa
Tenggara, Papua
Empty fruit
bunches: 3.4
Fibers: 3.6
Palm shells:
1.2
67
Palm shells and fibers are common fuel
sources, EFB are generally incinerated
Estimated power capacity
generated from biomass waste*
Industries
Estimated power
capacity, MW
Palm oil mills 90 250
Sugar mills 510 1,030
Rubberwood industries 680 1,600
Logging industries 390
Plywood waste 113
Forest clearing residues 666 9,330
Total 2,349-12,713
* ESMAP, 1994
Estimated surplus power capacity in palm oil industries
Province

Total capacity
(t FFB/h)
Power capacity based on CPO
residues (MW)
Lower estimate Higher estimate
Aceh 230 7.0 19
North Sumatera 2070 63.0 168
Riau 300 9.1 24
Jambi 10 0.3
Bengkulu 30 0.9
South Sumatera 120 3.6 10
Lampung 70 2.1
West Java 30 0.9
West Kalimantan 90 2.7
East Kalimantan 30 0.9
South East Sulawesi 30 0.9
Irian Jaya 30 0.9
Total 3,040 92 247
Note: Calculated on the basis of 7884 operating hours per year.
The lower estimate takes account of an efficiency of 15% while the higher estimates 35%.
Source: from ESMAP, 1994.
Prospective options for generation
capacity in palm oil industries
Large centralized systems (30 MW and
up) utilizing EFB as residues and a
central collection system;
Medium size regional systems (3 5 MW)
utilizing EFB from a number of mills in a
designated radius;
Decentralized systems (500 3 MW) for
individual palm oil mills.
No. City Population
Total waste
(ton/day)
1. Jakarta 9,784,308 4,892
2. Surabaya 2,913,973 1,457
3. Bandung 2,603,855 1,301
4. Bekasi 1,577,958 789
5. Tangerang 1,466,596 733
6. Semarang 1,454,932 727
7. Malang 828,710 414
8. Surakarta 534,079 267
9. Denpasar 485,538 243
10. Yogyakarta 442,824 221
11. Bogor 306,246 154
Source: R. Sudrajat, 2004
Daily garbage production in some main cities
Composition of garbage in Metropolitan cities
(in percentage)
Composition Medan Palembang Bandung Semarang Surabaya Jakarta U.Pandang
Papers 17.5 18.8 10.4 12.28 12.45 10.11 14.15
Wood/bamboo 0 - 0 25.74 - 3.12 1.15
Kitchen wastes 48.2 75.2 63.6 34.12 71.85 65.05 65.84
textile 0 0.3 1.8 1.56 1.94 2.45 1.22
Rubber/leather 2.3 0.5 4.1 1.08 0.54 0.55 0.36
Plastics 13.5 3.3 5.6 13.5 7.6 11.08 6.19
Metal 3.5 0.8 0.9 1.82 0.9 1.9 1.89
Sand, ceramic,
dusts
- - - 0.49 - - 1.28
Glass 2.3 0.4 1.5 1.74 0.9 1.63 2.33
Others 12.7 0.6 12.1 7.64 3.82 4.11 5.6
Source: Ministry of Public Works of Indonesia, 1999
Cost-effectiveness of biomass vs commercial applications
Case of Rice husk gasification
Component cost
Diesel genset
and gasifier
(Rp/kWh)
Diesel
generator set
(Rp/kWh)
Gas Power
Electricity
Generation
(Rp/kWh)
Investment 234.0 194.0 227.0
Fuel 324.0 495.0 231.0
Variable OM 1.8 1.8 1.2
Total 559.8 640.8 459.2
Simple economic analysis
Rice husk-diesel
generator
Conventional diesel
generator
Diesel fuel consumption
0.06 L/kWh
17,597 L
0.30 L/kWh
87,984 L
Diesel fuel price, Rp/L 1,650 1,650
Diesel fuel cost, Rp/year 29,034,720 145,173,600
Rice husk, Rp.
(1.5 kg/kWh, 439,920 kg, Rp. 50/kg)
21,996,000
Gasification cost, Rp.
(Rp. 150/kWh)
43,992,000
Total production cost, Rp. 95,022,720 145,173,600
Specific fuel cost, Rp/kWh 324 495
Total saving, Rp. 50,150,880
Rice husk gasification project facility
Haurgeulis, West Java
Project Description
10.3 MW Palm Oil Residue Plant, Pangkalanbrandan, Sumatra.
Project Description
Conventional steam cycle system
The plant will utilize:
Empty Fruit Bunches: 57%
Shell: 31%
Fibre: 12%
Fuel sourced from 6 mills.
100% of the required fuel can be supplied within 80km.
Reduce dumping of 110,000 tonnes of EFBs annually.
Net electrical output 10.3 MWe sold to PLN, Area II
under 20 year PPA.
Financial Model Results
Total Project Cost US$ 18 million
Debt/Equity Ratio 60 : 40
Debt Interest Rate
(during operations)
8.5 %
Terms of Debt 2 + 10 years
20 years IRR
(after local tax)
17.36%
(without sale of CERs)
Characteristic renewable energy for
electricity generation
No. Type of energy
Investment cost
(US$/kW)
Electricity
generating cost
(Cent/kWh)
1. Microhydro 700 2,500 3 - 5
2. Solar
-Photovoltaic
-Solar thermal

5,000 6,000
300

-
-
3. Geothermal 1,150 3,000 2.5 - 7
4. Biomass 500 - 700 3 - 4
5. Wind 3,500 4,000 12 - 21
6. Diesel fuel
-With subsidy
-Without subsidy

550
550

3.4
6
Source: MEMR, 2001
Market for biomass
Government energy policy to support
utilization of renewable energy including
biomass
PSK Tersebar
Electricity crisis
Recovery of economic activities




Road map biomass development
for electricity generation
Year 2003 2004 2008 2012 2016 2020
Capacity
(MW)
445.0 466.6 563.9 654.0 727.9 810.9
Share (%) 1.79 1.76 1.62 1.49 1.27 1.04
Growth
(%/a)
4.9 2.7