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



The plant in March 2012


The plant in March 2012


Power house Trafo room Radiator area

Inside the engine room Inside the PLN metering panel room



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“


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

[email protected]

Documents

PT. Austindo Aufwind New Energy