A way forward to reduce greenhouse gas emissions from Indonesia’s coal-fired power plants

USAID through its Indonesia Clean Energy Development II (ICED II) in collaboration with two directorates of Ministry of Energy and Mineral Resources (MEMR) held a seminar to introduce Performance and Greenhouse Gas Benchmarking (GHG) for Thermal Power Plants on August 24, 2020. A total of 162 participants from State Electricity Company (PLN), MEMR, Ministry of Environment and Forestry (MoEF), independent power producers (IPPs) and other professional organizations attended the seminar in-person and virtually.

During the event, USAID ICED II presented its final report on “Performance and GHG Benchmarking for Thermal Power Plants”. The report contains key findings on low performance and high GHG emissions of coal-fired power plants in Indonesia. It also has recommendations for mitigation actions to implement energy efficiency and GHG emission reduction in coal-fired power plants. USAID ICED II proposed sustainable energy efficiency scenario to address the low performance issue and to reduce GHG emissions in Indonesia’s coal-fired power plants. This includes a set of mitigation actions that enable coal-fired power plants to implement the scenario with low to medium-risk investment costs of Rp21,684 billions with seven months payback period.

The findings and recommencations of this report drew a lot of interests from MEMR and PLN, although actual implementation of the scenario would pose some challenges as well as raise other technical and financial issues that require careful and thorough assessments.

 

USAID ensures sustainability of a digital platform for access to electricity

USAID through its Indonesia Clean Energy Development II (ICED II) facilitates server migration of MELISA 1.0, a digital platform that monitors and evaluated Indonesia’s electricity access. USAID ICED II developed this platform to mainstream geospatial approach in electrification planning.

The server migration also ensures sustainability and adoption of MELISA 1.0 by Directorate General of Electricity of Ministry of Energy and Mineral Resources (MEMR DJK) and the State Electricity Company (PLN). USAID ICED II supports online hosting service or online server of MELISA 1.0 until June 2021. However MEMR DJK initiated migration process to a new online server as they are planning to use MELISA 1.0 in reviewing 2020 electricity access road map and in planning for 2021 electricity access road map. After considering several options, MEMR DJK preferred ICON+, a subsidiary of PLN to become the new host of MELISA.

On August 18, 2020, MEMR DJK invited ICED II to present the features and dashboards of MELISA 1.0 to ICON+ and PLN. ICON+ agreed to host the platform, pending clear budget allocation from either PLN or the ICON+ management. On August 24, 2020 MEMR DJK held a follow up meeting to initiate the migration process of MELISA 1.0 from current online server to ICON+ server. USAID ICED II shared specifications of MELISA 1.0 and qualifications of human resources required for the migration and further development of the platform. ICON+ will follow up the migration process with sending formal inquiries to USAID ICED II on other data and information required to ensure compatibility of MELISA 1.0 with their existing infrastructure and systems..

MELISA 1.0 platform will enhance the coordination among all electrification stakeholders and accelerate Indonesia’s efforts towards universal access of electricity.

USAID finalized MELISA 1.0, a digital breakthrough in accelerating Indonesia’s universal electricity access

USAID through its Indonesia Clean Energy Development Project II (ICED II) developed a platform called MELISA 1.0 that monitors and evaluated electricity access. On August 8, 2020 USAID ICED II handed over the platform with all its supporting files to Directorate General of Electricity of Ministry of Energy and Mineral Resources (MEMR DJK). MELISA 1.0 application software comes with a set of database containing data tables and maps related to electricity access and village data. The handover marked the completion of USAID ICED II assistance to MEMR DJK on electrification planning.

MEMR DJK has adopted MELISA 1.0 platform and introduced it to PLN regional offices on June 29, 2020. In addition to showing consolidated data and maps on rural electricity access and 20 kV network, the platform also provide opportunity for PLN regional offices to update their data on electricity access. The Ministry also appreciated USAID’s efforts in mainstreaming geospatial approach in electrification planning, a distinct feature of MELISA.

MELISA platform will enhance the coordination among all electrification stakeholders and accelerate Indonesia’s efforts towards universal access of electricity.

USAID finalized SPEND 1.0, a digital platform for more accurate energy planning

USAID through its Indonesia Clean Energy Development Project II (ICED II) developed a platform called SPEND 1.0 that showcases provincial energy profile, provincial energy documents as well as monitors and evaluates provincial energy planning. On August 8, 2020 USAID ICED II handed over the platform with all its supporting files to Secretariat General of National Energy Council (SetJen DEN). SPEND 1.0 provides information on energy planning activities from provincial government and presents analysis from the collected data and information. The handover marked the completion of USAID ICED II assistance to SetJen DEN on monitoring, evaluation, and reporting of regional energy planning.
The figure below illustrates an analysis that SPEND 1.0 generates. Economic growth assumption figure in various planning documents of a particular province often vary. In the context of energy planning, inconsistent figure of economic growth assumption will lead to inaccurate forecast of electricity needs. This may also impact electricity oversupply in one area and lack of supply in another area. In energy investment, more consistent figures will produce business plans that are closer to actual needs.

SPEND 1.0 will help local energy planners quickly identify these inconsistencies so that they can provide more accurate analysis.

The various units of Ministry of Energy and Mineral Resources (MEMR) are very keen to collaborate and explore possible synergies with SPEND 1.0. The SetJen DEN invited all units to contribute to and use the platform, while looking forward to more detailed discussions with other units in MEMR.

Energy Ministry introduces national competence standard on measurement and verification in energy performance

On July 16, 2020, Directorate of Energy Conservation, Directorate General of New Renewable Energy and Energy Conservation of Ministry of Energy and Mineral Resources (MEMR DG EBTKE) hosted an on-line socialization of the newly-issued Work Force Ministerial Decree on National Competence Standard of Measurement and Verification (M&V) in Energy Performance to related stakeholders. The Decree has just been issued on May 12, 2020, of which USAID Indonesia Clean Energy Development II (ICED II) helped preparing the draft during 2019.

The event highlighted the necessary follow-on actions on M&V to improve the implementation of energy efficiency program, for example the development of training and certification scheme for M&V professionals based on the national competence standard (SKKNI). In addition, MEMR DG EBTKE also shared the progress update on revision of Government Regulation (RPP) No.70/2009 on Energy Conservation. The RPP is expected to provide the legal basis for M&V professional certification and roles in Energy Efficiency projects.

USAID ICED II helped the development of SKKNI M&V draft by engaging various energy conservation stakeholders including energy managers, energy auditors, industry associations, profession associations, academicians, experts, and Profession Certification Bodies (LSPs). To roll out the Ministerial Decree and to promote development of professional assessment criteria based on SKKNI, MEMR DG EBTKE are holding series of socialization events. This event is the first socialization event that was attended by more than 43 participants. MEMR DG EBTKE is still planning the next socialization events, that might target industrial sector and local governments.

USAID supports SPEND, dashboards that cover provincial energy profile, documents, and monitors energy planning implementation

USAID through its Indonesia Clean Energy Development II (ICED II) project and General Secretary of National Energy Council (DEN) held an online workshop on SPEND, a platform that covers provincial energy profile, provincial energy documents as well as monitors and evaluates the energy planning. The workshop took place on June 30, 2020 and 38 participants from various units under the Ministry of Energy and Mineral Resources (MEMR) such as Directorate General of New and Renewable Energy and Energy Conservation (DG EBTKE), Planning Bureau and Data and Information Center (Pusdatin) joined the online workshop.

The various units of MEMR are very keen to collaborate and use the SPEND platform. MEMR Pusdatin as the data authority said that they are open for further discussion to ensure that SPEND platform meets their technical requirements, while MEMR DG EBTKE is interested to explore possible synergies with SPEND. The General Secretary of DEN invited all units to contribute to and use the platform, while looking forward to more detailed discussions with other units in MEMR.

Meets MELISA, a dashboard that monitors and evaluates Indonesia’s electricity access

In coordination with the Directorate General of Electricity of Ministry of Energy and Mineral Resources (MEMR DJK), on June 29, 2020 ICED II held a workshop on a platform called MELISA that monitors and evaluated evaluation of electricity access.

USAID through Indonesia Clean Energy Development II (ICED II) project presented three main dashboards of MELISA that cover energy access maps, data view, as well as data input on electricity access. MELISA has forest layer in the map, progress tracking on each steps of energy access program (from field survey to material procurement, power line construction until the operations of 20 kilovolt network), as well as a help desk.

A total of 100 staff of MEMR DJK and regional offices of State Electricity Company (PLN) participated in the online workshop. The workshop participants had the opportunity to use the platform and gave positive feedbacks on the dashboards.

MEMR DJK highly appreciated USAID ICED II efforts in mainstreaming geospatial approach in electrification planning, a distinct feature of MELISA.

Currently USAID ICED II is continuously refining the MELISA platform, to enhance the coordination among all electrification stakeholders and accelerate Indonesia’s efforts towards universal access.

USAID holds online knowledge sharing on renewables-powered microgrid for Indonesia’s Ministry of Energy and Mineral Resources

In collaboration with the Ministry of Energy and Mineral Resources’ Directorate General of Electricity (MEMR DJK), USAID Indonesia Clean Energy Development II (ICED II) held the second batch of a virtual workshop on Knowledge Sharing for Power System Modernization and Smart Grid Technologies and Programs on June 18, 2020.

The workshop aimed to increase the Ministry staff’s knowledge and understanding amid the transition toward a more modern power system. More than 100 participants from various units within MEMR, the Indonesia State Electricity Company (PLN) and its subsidiaries participated in the online knowledge sharing.

State Electricity Company (PLN) staff from Sumba Timur presented the successful implementation of automatic dispatch system (ADS), a control system that USAID ICED II installed. Among the key results from the installed control system were significant reduction in blackouts, ability to maintain stable power supply, and better use of power generated by a grid-connected solar photovoltaic (PV) power plant. In January 2020, officials from MEMR DJK and Ministry of Finance (MoF) visited the installed control system in Sumba Timur and appreciated the successful implementation. The acceptance will also pave the way for encouraging PLN to replicate and scale up the demonstration as part of the government’s objective of modernizing Indonesia’s power system and achieving the target for renewable energy generation.

Dede Subakti, a member of Indonesian diaspora in the U.S. and Director of Operations Engineering Service of California Independent System Operator (CAISO), shared the company’s experience in developing microgrids using renewables, which began with developing pilot projects in universities through government-support grants. In 2017, CAISO eventually developed a microgrid roadmap with the focus on improving power system resiliency and reducing blackouts in isolated areas, especially disaster-affected areas. CAISO is also trying to find the best commercial scheme for the renewables-powered microgrid, while addressing various technical challenges such as to provide fast and accurate response from the microgrid to meet the energy needs.

The Ministry’s Director General appreciated the knowledge sharing session and looked forward to developing a smart grid framework, roadmap and system, focusing first on Java island, as smart grid program is part of Indonesia’s national strategic projects.

Training zoom ICED II PLN offices

USAID’s training of trainers series in renewable energy project appraisal concluded, PLN staff appreciated the tools

On June 16-19, 2020, State Electricity Company’s (PLN) Corporate University hosted an online training of trainers (ToT) on evaluating proposed wind power projects. USAID Indonesia Clean Energy Development II (ICED II) organized the last batch of the training for 48 PLN staff from various regional offices.

The training shared useful reference documents and hands-on tools to use when reviewing and evaluating wind projects’ feasibility study. In addition, the training is part of ICED II and PLN joint effort to transfer knowledge as PLN trainers co-delivered the sessions.

Many PLN staff appreciated the tools and expertise of ICED II, despite limited direct participation and time allocation due to the virtual setting. Most of the PLN staff also had to juggle the training with their daily tasks, while some others had to deal with poor internet connection at home.

From February to June 2020, USAID in collaboration with PLN facilitated five batches of ToT, where 231 PLN staff from across the archipelago received improved knowledge in evaluating renewable energy project appraisals.

ICED II has developed a set of guidelines to assist PLN staff in reviewing feasibility studies of various renewable energy power project types as proposed by independent power producers. The ToT series was also aimed to roll out the guidelines and to promote their adoption by PLN staff.

The first training in the series was held on February 24-25, 2020 with a focus on evaluating bioenergy power projects, while the second training series was held on April 21-23 on hydropower projects. The ToT continued to the third series on May 18-20, 2020 on biogas power projects, the fourth on June 2-4, 2020 on waste-to-energy power projects, and the fifth batch took place on June 9-11, 2020 discussing solar PV projects. The last ToT took place on June 16-19, 2020 on wind power projects.

Bappenas hosted the launch of power purchase agreement evaluation handbook that USAID ICED II facilitated on June 12, 2020. A total of 45 participants joined the online event.

New power purchase agreement evaluation handbook provides guidelines for Indonesia’s financial services institutions

To ease the Power Purchase Agreement (PPA) evaluation in due diligence process by financial services institutions, USAID’s Indonesia Clean Energy Development II (ICED II) project launched a handbook to guide financial services institutions in evaluating off-take agreement with state electricity company PLN. The PPA is a long term (up to 30 years) bilateral contract between the project sponsor and PLN as the “off-taker” for the project’s electricity. Part of the ICED II support for Indonesia’s Financial Services Authority (OJK), the handbook was launched during the USAID technical assistance handover certificate event on on June 12, 2020, hosted by the National Development Planning Agency (Bappenas), USAID ICED II, through its subcontractors, also presented business models for solar photovoltaic (PV) power plants and preliminary findings of solar PV project lending survey at the event. Joining the event were 45 participants from Bappenas, OJK, banks and other financial services institutions.

Poppy Veronica from state bank BNI, said she found the handbook very useful for banks in evaluating power purchase agreements for renewable energy projects. BNI planned to upload the handbook in BNI University’s knowledge database.

Many banks and other financial services in Indonesia have been supporting renewable energy investment and are building a portfolio of renewable energy projects. Project sponsors or holding company’s track record and credit worthiness have been the most crucial criteria in credit evaluation of such. However, there are additional project-related risks to lenders based on the specific terms and conditions in the PPA.

Technical assistance to the banking sector has been USAID’s key intervention in increasing the capacity of financial services institutions in financing renewable energy projects. ICED II has provided training and project evaluation, as well as published practical guidelines, handbooks and manuals.