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
Resource: Energy form:
Forestry Solid

Agro-industrial waste Direct combustion, gasification, pellet

Crop residues Liquid
Municipal city waste Biodiesel
Bioethanol, biomethanol
Biofuel
Gas
Biogas
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
 Renewable energy status
Installed
Sources Potential 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/m2/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)
 Potential for biomass technologies in
selected industries
Capacity of
Biomass potential for power
Type of industry Mill size CHP
generation
technology
0.6 m3 wood waste/m3 sawn
1. Saw mills 1000-3000 m3/y 40-100 kWe timber
~ 130 kWh/m3 sawn timber
0.8 m3 wood waste/m3
2. Ply wood mills 40 000-120 000 m3/y 1.5 3 MWe plywood
~ 200kWh/m3 plywood
0.3 t bagasse/t sugarcane
3. Sugar mills 1000- 4000 TCD 3-10 MWe
~ 100 kWh/t sugar cane

< 0.7 t/h 30-70 kWe 280 kg husk/t paddy

4. Rice mills
>0.7 t/h 100-300 kWe ~ 120 kWh/t paddy

0.2 t EFB/t FFB

0.2 t fibre/t FFB
5. Palm oil mills 20- 60 t FFB/h
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
Production Technical
Biomass Main region (million energy potential Remarks
ton/year) (million
GJ/year)
Rubber wood Sumatera, Kalimantan, 41 120 Small logs d <10 cm
Java (replanting) 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 Kalimantan, Sumatera, 1.5 16
production residues Java, Papua, Maluku
Sugar residues Java, Sumatera, South Bagasse: 10 78 Bagasse is generally used in sugar
Kalimantan Cane tops: 4 factories (90%)
Cane tissues: The use of cane tops and tissues needs to
9.6 be investigated
Rice residues Java, Sumatera, Husk: 12 150 Stalk and straw are generated at the field
Sulawesi, Kalimantan, Bran: 2.5 and generally burnt, in some areas used for
Bali, Nusa Tenggara Stalk: 2 feeding or raw material for paper
Straw: 49 industries
Husks often burnt uncontrolled
Coconut residues Sumatera, Java, Shell: 0.4 7 Residues are generated decentralized and
Sulawesi Husk: 0.7 usually left on the plantation field. Largely
used as fire wood and for the production
of charcoal
Palm oil residues Sumatera, new areas: Empty fruit 67 Palm shells and fibers are common fuel
Kalimantan, Sulawesi, bunches: 3.4 sources, EFB are generally incinerated
Maluku, Nusa Tenggara, Fibers: 3.6
Papua Palm shells: 1.2
 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
Power capacity based on CPO
Province Total capacity residues (MW)
(t FFB/h) Lower
Higher estimate
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.
 Daily garbage production in some main cities

Total waste
No. City Population
(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
 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, - - - 0.49 - - 1.28
dusts
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
Gas Power
Diesel genset Diesel
Component Electricity
and gasifier generator set
cost Generation
(Rp/kWh) (Rp/kWh)
(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 Conventional
generator diesel generator
0.06 L/kWh 0.30 L/kWh
Diesel fuel consumption
17,597 L 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. 21,996,000
(1.5 kg/kWh, 439,920 kg, Rp. 50/kg)

Gasification cost, Rp. 43,992,000

(Rp. 150/kWh)

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 8.5 %

(during operations)
Terms of Debt 2 + 10 years

20 years IRR 17.36%

(after local tax) (without sale of CERs)
 Characteristic renewable energy
for electricity generation
Electricity
Investment cost
No. Type of energy generating cost
(US$/kW)
(Cent/kWh)
1. Microhydro 700 2,500 3-5
2. Solar
-Photovoltaic 5,000 6,000 -
-Solar thermal 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 550 3.4
-Without subsidy 550 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
445.0 466.6 563.9 654.0 727.9 810.9
(MW)

Share (%) 1.79 1.76 1.62 1.49 1.27 1.04

Growth
4.9 2.7
(%/a)