Innovative Concepts and Strategies for Solar

Electrification in Indonesia

Dr. Rudolf Rauch

Program Coordinator Renewable Energy Indonesia/ASEAN

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Solar Energy Seminar, Universitas Indonesia, Fakultas Technik

Jakarta, 24. July 2012

Keys for commercial PV use

� meets customer needs

� competitive viable technology (costs)

� suitable for mass market, possible standardization

� market oriented service structure that satisfies the customer

� Indonesia biggest archipelago (17000 islands)

� biggest ASEAN member state (population: 240 Mio)

� economic growth: 6% p.a.; increase power consumption: 9 % .

Present Situation

� Electrification 66%, 80 Mio people without electricity

� PLN (state utility) > 5000 power plants, 5 MW/plant

� average generation costs PLN: 1200 IDR/kWh

� In remote areas: 3000 – 9000 IDR/kWh (diesel)

� Solar irradiation: 4.1-5.5 kWh/m2/d (ca 50%> than Germany)

� Total PV potential in comparison with Germany: Factor 10

� Installed PV Capacity: 15 MW

� Prior government programs limited success (off-grid)

Banda

Aceh

Medan

Dumai

Padan

Samarinda

Pontianak

Present Grid/ Transmission Lines

Jambi

Padan

g

Lampung

Banjarmasin

Surabaya

Jakarta

Denpasar

Existing Transmission

Line

Planned Transmission

Line

Regional Focus: Islands in East-Indonesia

� Strong solar irradiation, dry climate

� Little potential for hydropower/biomass

� PV as best renewable solution

Customer PLN

� PV electricity feed-in into local PLN DG-grids

� Close to the power plant (PLN1000 Island Programme)

� Along the 20 kV privately operated grid� Along the 20 kV privately operated grid

� Cost criteria: each kWh saved from diesel generation

reduces PLN’s losses.

� Example: 8 MW diesel plant, 100 km 20kV grid, PLN

generation costs 2800 IDR/kWh, selling price 450-1380

IDR/kWh

Customer PLN: Large-Scale PV (1000 Island Program)

� large scale PV systems in combination with PLN

diesel-fired plants (PV-DG-Hybrid)

� 71 Sites� 71 Sites

� Total PV Capacity: 302 MWp

� PV Plant Size: 1 – 30 MWp

� Estimated Costs: 2.56 Euro/Wp

� Off-Taker & Operator: PLN

� Competitive Tendering

Alternatives or Additions to PLN PV-DG Hybrid plants

� PV feed-in alongside of the 20 kV grid

� Less transmission and distribution losses

� Financing and operation through private entities (no costs � Financing and operation through private entities (no costs

for PLN)

� Reduces PLN’s losses by replacing diesel generated

electricity through solar solutions

� Precondition: Establishment of Power Purchasing

Agreement with local PLN beneath their generation costs

Customer PLN: Small-Scale PV (1000 Island Program)

� 674 Sites

� Total PV Capacity: 119 MWp

� PV Plant Size: 50 - 1500 kWp� PV Plant Size: 50 - 1500 kWp

� Estimated Costs: 2.69 – 3.83 Euro/Wp

� Off-Taker: PLN

� Operator: PLN?

Customers NREEC, Villages: PV village systems

� government program, driver: NREEC/MEMR

� 160 Sites @ 15 kWp

� Tendering by MEMR� Tendering by MEMR

� Operator: village committees

� Main challenge: sustainable operation of PV battery-

systems by villagers

� Demand for innovative und sustainable solutions to

be offered by service provider / suppliers

Specific commercial applications

� Cooling through PV – fishery

� Water pumps powered by PV – drinking water,

agricultureagriculture

� Drinking water purification

� PV systems for transmitter tower

� PV engines for fishing boats

� Tourism, Hotels

Specific solutions for social institutions

� Local clinics (lighting, drug cooling, etc)

� Community halls

� Schools� Schools

� Mosques, Churches

Specific solutions for customers

� Lighting

� Charging of cellphones

� PV-TV (television)� PV-TV (television)

� Domestic appliances

� etc

Innovative business models

� Alternative structure of distribution, e.g. through

providers/operators of DG-Sets

� Through distributors of mobile phones, TVs, etc.� Through distributors of mobile phones, TVs, etc.

� Distributors of refrigeration systems

� Sustainable operator models for village PV

systems

Estimated Market Potential

� Theoretic Potential: I = D x 10

� Estimation: 5000 diesel fired plants,1000 of them

as PV-DG Hybrid-System and/or grid-connected as PV-DG Hybrid-System and/or grid-connected

PV plants

� In the medium run (5 years): 1000 MWp

� In the short run (2-3 years): 200 MWp

� Application specific solutions ?

� Village power plants: 2 MW/annually

Power to the Islands!

Solar Innovation now!

rudolf.rauch@giz.de