Pre-Feasibility Study for Geothermal Power Development Projects in Scattered Islands of East Indonesia

Transcription

1 Pre-Feasibility Study for Geothermal Power Development Projects in Scattered Islands of East Indonesia STUDY REPORT March 2008 Engineering and Consulting Firms Association, Japan

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3 o l 10 INDONESIA ANDAMAN SEA THAILAND Bangkok Gulf of Thailand LAO P.D.R. CAMBODIA Phnom Penh VIET NAM SOUTH CHINA SEA Manila PHILIPPINES SULU SEA PROVINCES OF INDONESIA 1. ACEH 2. BALI 3. BANGKA-BELITUNG 4. BANTEN 5. BENGKULU 6. GORONTALO 7. IRIAN JAYA 8. JAKARTA 9. JAMBI 10. JAWA BARAT 11. JAWA TENGAH 12. JAWA TIMUR 13. KALIMANTAN BARAT 14. KALIMANTAN SELATAN 15. KALIMANTAN TENGAH 16. KALIMANTAN TIMUR 17. LAMPUNG 18. MALUKU 19. MALUKU UTARA 20. NUSA TENGGARA BARAT 21. NUSA TENGGARA TIMUR 22. RIAU 23. SULAWESI SELATAN 24. SULAWESI TENGAH 25. SULAWESI TENGGARA 26. SULAWESI UTARA 27. SUMATERA BARAT 28. SUMATERA SELATAN 29. SUMATERA UTARA 30. YOGYAKARTA Banda Aceh BRUNEI DARUSSALAM Bandar Seri Begawan Kepulauan 1 Langsa MALAYSIA Natuna Talaud Besar Medan CELEBES Sangihe Kuala Lumpur PACIFIC OCEAN Tebingtinggi MALAYSIA SEA 26 Simeulue Borneo Tanjungredep Morotai Padangsidempuan SINGAPORE 22 Manado Kepulauan 16 Nias 29 Riau Pekanbaru 6 Halmahera Equator Payakumbuh Kepulauan Ternate Sumatra Kalimantan Waigeo 0 Lingga Pontianak Samarinda Teluk Tomini 0 Manokwari Padang 13 Palu 24 Selat Biak Sorong Jambi Bangka Kartimata 15 Peleng 19 Biak 27 9 Pangkalpinang Palangkaraya Balikpapan Sulawesi Yapen Siberut Obi Misool Teluk Sungaipenuh (Celebes) Cenderawasih Jayapura 28 3 Kepulauan 14 Palembang Billiton Sula G r e a t e r 23 Ceram Buru Pare Pare Wamena Lahat Laut Kendari Ambon 7 5 S u n d a I s l a n d s Kotabumi New 17 Bandar Lampung Timika Enggano Guinea 8 Jakarta 11 Buton Ujungpandang BALI SEA Kepulauan Selajar Semarang BANDA SEA 4 Madura Kangean Aru Selat Madura Wetar 10 Kepulauan Java 12 2 Sumbawa Babar Dolak Flores Dili Tanimbar National capital 30 Merauke SAVU SEA TIMOR-LESTE Provincial capital Lesser Sunda Islands Timor ARAFURA SEA 10 Christmas I. Sumba 10 Town, village (AUSTRALIA) Sawu Kupang Roti International boundary TIMOR SEA Provincial boundary Ashmore Is. (AUSTRALIA) INDIAN OCEAN Cartier I. Darwin Main road (AUSTRALIA) Gulf of Secondary road INDONESIACarpentaria Railroad km The boundaries and names shown and the designations Major airport used on this map do not imply official endorsement or mi acceptance by the United Nations. AUSTRALIA ( ( Strait Sipura Pagai Utara Pagai Selatan of Malacca ( Bengkulu ( Selat Sunda Seran g ( Banddung ( Yogyakarta Banjarmasin JAV Surabaya ( A SE ( Bali Denpasar Lombok A Mataram ( Strait Makassar ( Teluk Bone Muna Gorontalo Alor ( ( M MOLUCCA u SEA c c Bacan CERAM a s Salawati SEA ( ( PAPUA NEW GUINEA Map No Rev. 4 UNITED NATIONS January 2004 Map of Indonesia (source: United Nations) Department of Peacekeeping Operations Cartographic Section

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5 Table of Contents Executive Summary CHAPTER 1 INTRODUCTION OUTLINE OF STUDY BACKGROUND OBJECTIVES SCOPE OF WORK STUDY AREA FUTURE INITIATIVE STUDY TEAM STUDY SCHEDULE... 5 CHAPTER 2 NECESSITY OF GEOTHERMAL DEVELOPMENT IN THE EASTERN PROVINCES BACKGROUND OF GEOTHERMAL POWER DEVELOPMENT IN INDONESIA SIGNIFICANCE OF GEOTHERMAL ENERGY DEVELOPMENT CURRENT STATE OF GEOTHERMAL ENERGY DEVELOPMENT IN INDONESIA METHODOLOGY TO PROMOTE GEOTHERMAL ENERGY DEVELOPMENT IN THE EASTERN PROVINCES SOCIAL SITUATION OF THE EASTERN PROVINCES ELECTRICITY SUPPLY AND DEMAND SITUATION IN THE EASTERN PROVINCES NECESSITY OF GEOTHERMAL ENERGY DEVELOPMENT IN THE EASTERN PROVINCES SMALL SCALE POWER GENERATION DEVELOPMENT OF OTHER ENERGY SOURCES CHAPTER 3 GEOTHERMAL RESOURCES IN EASTERN INDONESIA OVERVIEW OF GEOTHERMAL RESOURCES IN EASTERN INDONESIA PRESENT EXPLORATION STATUS IN EASTERN INDONESIA NECESSARY STUDY FOR FUTURE GEOTHERMAL RESOURCE DEVELOPMENT GEOTHERMAL RESOURCES IN EACH FIELDS CHAPTER 4 ENVIRONMENTAL AND SOCIAL ASPECT ENVIRONMENTAL ASSESSMENT SYSTEM LEGISLATION, STANDARDS AND REGULATIONS RELATING TO THE ENVIRONMENT (GEOTHERMAL DEVELOPMENT RELATED) CHAPTER 5 IMPLEMENTATION PLAN PROJECT COMPOSITION CONSULTANT SERVICE PROJECT IMPLEMENTATION ORGANIZATION DEVELOPMENT SCHEDULE OPERATION AND MAINTENANCE PROJECT COST ESTIMATE

6 5.7 FINANCIAL ARRANGEMENT PLAN CHAPTER 6 ECONOMIC ASSESSMENT ECONOMIC EVALUATION FINANCIAL EVALUATION CHAPTER 7 PREPARATION OF GEOTHERMAL POWER DEVELOPMENT PROJECT NECESSITY OF PREPARATION STUDY SUPPLEMENTARY STUDY AND PROJECT PLANNING CHAPTER 8 PROJECT POTENTIAL FOR CDM CO 2 EMISSION BY POWER SOURCE CDM INSTITUTION IN INDONESIA GEOTHERMAL PROJECT EFFECTS OF ENVIRONMENTAL IMPROVEMENT SMALL SCALE GEOTHERMAL POWER DEVELOPMENT AS SMALL SCALE CDM CDM PROJECT IN A ODA PROJECT

7 List of Figure Fig. 2-1 Geothermal Development Road Map Fig. 2-2 Electricity Demand and Supply Situation in Eastern Provinces (2006) Fig. 2-3 Electricity Sales in Eastern Provinces (2006) Fig. 2-4 Electrification Ratio in Eastern Provinces (2006) Fig. 2-5 Electricity Demand Outlook in Eastern Provinces Fig. 2-6 Installed Capacity of PLN (2006) Fig. 2-7 Comparison of Power Plant Mix between Whole Nation and Eastern Provinces (2006) Fig. 2-8 Increase of Diesel Generation Cost and Diesel Fuel Price Fig. 2-9 Generation Cost by Energy Type (2006) Fig International Oil Price Fig Concept of Best Energy Mix in Eastern Provinces Fig. 3-1 Map of Geothermal Area in West Nusa Tenggara (DGMCG, 2005) Fig. 3-2 Map of Geothermal Area in West East Nusa Tenggara (DGMCG, 2005) Fig. 3-3 Map of Geothermal Area in North Maluku (DGMCG, 2005) Fig. 3-4 Map of Geothermal Area in Maluku (DGMCG, 2005) Fig. 3-5 Map Showing the Resource Potential in Promising Geothermal Fields (JICA, 2007) Fig. 3-6 Geothermal area of Hu u Daha (after J. Brotheridge et al., 2000) Fig. 3-7 Geological map in Wai Sano (after JICA, 2007) Fig. 3-8 Resistivity survey result in Wai Sano (after JICA, 2007) Fig. 3-9 Hydrothermal mineral zonation in Ulumbu (revised Kasbani, et al., 1997) Fig Compiled map of geothermal activity in the Nage and Wolo Bobo areas (JICA, 2007) Fig Location of exploratory wells in Mataloko (Muraoka et al., 2005) Fig Photograph of the flow twist of NEDO MT-2 well (Muraoka et al., 2005) Fig Prospect Area in Sokoria Mutubusa (J. Brotheridge et al., 2000) Fig Geological map in Tulehu (JICA, 2007) Fig Prospect Area in Tulehu (JICA, 2007) Fig Geothermal model in Jailolo (after VSI) Fig. 4-1 Geographical relation between prospects and the conservation forest in Huu Daha and Wai Sano Fig. 4-2 Geographical relation between prospects and the conservation forest in Ulumbu and Bena-Mataloko Fig. 4-3 Geographical relation between prospects and the conservation forest in Sokoria-Mutubusa and Oka-Larantuka Fig. 4-4 Geographical relation between prospects and the conservation forest in Ili Labaleken and Atadei Fig. 4-5 Geographical relation between prospects and the conservation forest in Tonga Wayana and Tulehu Fig. 4-6 Geographical relation between prospects and the conservation forest in Jailolo Fig. 5-1 Development Flowchart Fig. 5-2 Photographs of Suginoi Hotel flash steam unit Fig. 5-3 Layout of Back Pressure Turbine Generator Set (5.5 MW)

8 Fig. 5-4 Typical Schemes of Geothermal Power Development in Indonesia Fig. 5-5 Project Organization Fig. 5-6 Project Schedule (Tentative) Fig. 6-1 EIRR Sensitivity to Capacity Factor Fig. 6-2 EIRR Sensitivity to Project Cost Fig. 6-3 EIRR Sensitivity to Fuel Cost Fig. 6-4 FIRR Sensitivity to Capacity Factor Fig. 6-5 FIRR Sensitivity to Project Cost Fig. 6-6 FIRR Sensitivity to Tariff Rate Fig. 6-7 Accumulate Balance of cash flow Fig. 8-1 CO 2 Emission by Power Source Fig. 8-2 Project Screening Process by DNA Fig. 8-3 CER s Price Fig. 8-4 CO 2 Emission by Steam Production

9 List of Table Table 1-1 Study Team Members... 5 Table 1-2 Schedule of First Trip in Indonesia... 6 Table 1-3 Schedule of Second Trip in Indonesia... 6 Table 2-1 Geothermal Power Plant in Indonesia and its Development Scheme Table 2-2 National Energy Policy Table 2-3 Presidential Decree on National Energy Policy Table 2-4 Geothermal Energy Law Table 2-5 Outline of Eastern Provinces Table 2-6 Electricity Demand and Supply Situation in Eastern Provinces (2006) Table 2-7 Diesel Power Plants in Maluku and North Maluku Table 2-8 Diesel Power Plants in Nusa Tenggara Table 2-9 Diesel Power Plants in Flores Island Table 2-10 Electricity Demand Outlook in Eastern Provinces Table 2-11 Estimation of Geothermal Development Effect in Eastern Provinces Table 3-1 Geothermal Resource Potential (MW) in Eastern Indonesia Table 3-2 Present Status of geothermal resource development in Eastern Indonesia Table 4-1 Environment Quality Standards for Air Pollution Table 4-2 Gas Exhaust Standard (Stationary Source) Table 4-3 Environmental Quality Standard for Water (Drinking Water Usage) Table 4-4 Quality Standards of Liquid Waste Table 4-5 Standards of Noise Level Table 4-6 Standards of Noise Level at Source Table 4-7 Classification of Forest Area Table 5-1 Contents of Project Cost Table 5-2 Terms and Conditions of Loans Table 6-1 Economic Internal Rate of Return Table 6-2 Financial Internal Rate of Return Table 6-3 Repayment Schedule for Power Plant Project Table 6-4 Cash Flow Statement

10 Abbreviations AMDAL BAPPENAS BPPT CDM CER CGR CO 2 DGEEU DGMCG EIA EIRR ESC FIRR FS GA GDP IEE IRR IUP JBIC JICA K-Ar LA MEMR MT NCG NEDO O&M ODA OJT PDD : Analysis Mengenai Dampak Lingkungan : National Development Planning Agency : Baden Pengkajian dan Penerapan Teknologi : Clean Development Mechanism : Certified Emission Reduction : Center for Geological Resources : Carbon dioxide : Directorate General of Electricity & Energy Utilization : Directorate General of Mineral, Coal and Geothermal : Environmental Impact Assessment : Economic Internal Rate of Return : Energy Sales Contract : Financial Internal Rate of Return : Feasibility Study : Geological Agency : Gross Domestic Product : Initial Environmental Evaluation : Internal Rate of Return : Geothermal Energy Business Permit : Japan Bank International Cooperation : Japan International Cooperation Agency : Potassium-Argon : Loan Agreement : Ministry of Energy and Mineral Resources : Magneto-Telluric : Non Condensable Gas : New Energy and Industrial technology Development Organization : Operation & Maintenance : Official Development Assistance : On-the Job-Training : Project Design Document

11 PERTAMINA PIN PGE PLN RUKN RUPTL TDEM TOE VAT WACC : PT. PERTAMINA (Persero) : Project Information Note : PT. PETRAMINA Geothermal Energy : PT. Perusahaan Listrik Negara (Persero) : Rencana Umum Ketenagalistrikan Nasional : Rencana Usaha Penyediaan Tenaga Listrik : Time Domain Electro Magnetic : Ton of Oil Equivalent : Value Added Tax : Weighted Average Cost of Capital

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13 Executive Summary 1. Objectives The purpose of the study is to survey geothermal resources and formulate a practical development plan making best use of the resource for substitution of geothermal power generation with existing and planned diesel powers in West Nusa Tengara, East Nusa Tengara, Maluku and North Maluku Provinces. The study and planning were carried out in consideration of application for Japanese Yen Loan in the next Japanese fiscal year. 2. Necessity of Geothermal Power Development in Eastern Provinces Background of Geothermal Power Development in Indonesia Indonesia suffered the largest impact among ASEAN countries in the Asian economic crisis in However, the Indonesian economy has shown a great improvement after the crisis due to the results of various policy reforms and supported by the inflow of investment from foreign and domestic sources. Thus, the Indonesian economy is expanding steadily, and the electric power demand is also increasing rapidly. The peak power demand of the whole country reached 20,354 MW in 2006 and showed the 5.1% increase from the previous year. The amount of energy demand in 2006 also records 113,222GWh, the 5.1% increase from the pervious year. The National Electricity Development Plan 2005 (RUKN 2005) estimates that the peak power demand of the country will increase at the average annual rate of 7.5% and will reach 79,900 MW in It also estimates that the energy demand will increase at almost same rate and will reach 450,000 GWh in In order to secure stable energy supply, the development of power plants which meets these demand is one of the urgent issues of the Indonesian power sector. Since the demand in the Java-Bali system accounts for 77.2%of the total country, the power plant development in this system is most important. But the power development in other system is also very crucial because the power demand will increase rapidly due to the expansion of the rural electrification and rural economy. Another urgent issue that the Indonesian power sector faces is the diversification of energy sources. In the light of high oil price, it is necessary to reduce oil dependency in energy source in order to reduce generation cost and to secure stable energy supply. For this purpose, Indonesian government worked out "National Energy Policy (NEP)" in 2002, and set the target of supplying 5% or more of the primary energy by renewable energy by To achieve this target, the government put the important role on geothermal energy which exists affluently in the country. Indonesian Government s Intention on Geothermal Power Development The utilization of geothermal energy has already a long history and more than 8,000 MW capacity of geothermal energy has been exploited in the world. Notwithstanding one form of natural energy, geothermal energy production is extremely steady with less fluctuation caused by weather or by seasonal condition. The geothermal energy can be used for social development i

14 in rural areas by introducing multipurpose utilization. The development of geothermal energy has a great significance for the national economy and the people s life in Indonesia. Moreover, since geothermal energy is global-environmentally friendly, the geothermal development can contribute to world community for preventing global warming by reduction of carbon dioxide gas emission. It is said that Indonesia has the world-biggest geothermal energy potential, which was estimated as more than 27,000 MW and is though to account for more than 40% of world total potential. Therefore, the development of geothermal power has been strongly expected in order to supply energy to the increasing power demand and to diversify energy sources. Today, geothermal power plants exist in seven fields in Indonesia, and the total capacity reaches 857 MW. However, although this capacity is the forth largest in the country-ranking in the world, Indonesia has not fully utilized this huge geothermal potential yet. Having been urged by such situation, the Indonesian Government decided to promote geothermal energy development. The Government worked out "National Energy Policy (NEP) in 2002, and set a target of supplying 5% or more of the primary energy by renewable energy by In addition, the Government enacted "Geothermal Energy Law" in 2003 to promote the participation of private sector in geothermal power business. Moreover, Ministry of Energy and Mineral Resources (MEMR) worked out "Road Map Development Planning of Geothermal Energy" (Road Map) to materialize the National Energy Policy in In this Road Map, a high development target of 6,000 MW by 2020 and 9,500 MW by 2025 is set. Thus, a basic framework for geothermal energy development has been formulated and the Government has started its efforts to attain these development targets. In September 2007, Japan International Cooperation Agency (JICA) has submitted the final report on "Mater Plan Study for Geothermal Power Development in the Republic of Indonesia, which aimed to study the concrete strategy to attain Road Map of Geothermal Development. This study has evaluated 73 of promising geothermal fields in Indonesia and makes the following proposals; (i) the economic incentives such as the ODA finance for Pertamina and the increase of purchase price for private investors are necessary to promote the Rank A fields (the most promising fields), (ii) the preliminary survey by the geothermal promotion survey which includes test drilling by the government is necessary to promote private investors participation in the Rank B and the Rank C fields (the promising fields without test drilling holes), and (iii) The governmental development activities are indispensable to promote small geothermal energy resources in remote islands in the eastern regions since private investors are unlikely to promote these small geothermal resources in these regions. As for how to promote geothermal fields in remote eastern islands, the report proposed the following way; Basic Strategy for Geothermal Field Development in Remote Islands; In remote islands geothermal power plant is the most economic advantageous power source, because other power plants can not utilize the scale-merit in construction cost. ii

15 Therefore, geothermal development in such small systems should be positively promoted in order to decrease the fuel cost of diesel power plants. However, in such remote islands, the development by private developers cannot be expected because the project scale is too small for business scale. Therefore, the Government should play the central role of developing geothermal energy fields in remote islands. In such fields, as the development scale is small, there is a possibility of converting succeeded exploration wells into production wells. Therefore, the construction of a small power plant by PT. PLN or by local government company may be easy if the government succeeds to drilling steam wells in the survey and transfers the wells to the power plant operator. The governmental survey and development are highly expected in remote islands. The main purpose of this study is, based on the above-mentioned proposal, to formulate a project, which promotes geothermal energy development in the eastern provinces in Indonesia by the Indonesian Government. The possibility to utilize Yen Loan for the project finance was investigated in this study. In Geothermal Master Plan, development of power plants of 186 MW in total in the eastern provinces was planned based on the existing resource data. In a general way, power output and development program in each geothermal field should be decided after resource data collection by preliminary resource studies described later. However, since urgent commencement of geothermal power development in the eastern provinces is considered to be necessary and pilot project of geothermal power development should be started as soon as possible, because of inflationary cost rise of fossil fuel for the diesel power generation and long term development of geothermal power plants of 186 MW until 2025, several fields developments, which include geothermal fields where geothermal resources were confirmed by the studies or an urgent need of substitution by geothermal power exists, were decided to be developed using ODA Yen Loan. Considering commencement of operation of geothermal power plants by 2016, the support by ODA Yen Loan is considered to be sufficient for construction of 35 MW geothermal power plants as pilot projects. General Status of Eastern Indonesia The surveyed area in this study is the eastern part of Indonesia, which consists of small islands. Particularly, the Maluku province, the North Maluku province, the West Nusa Tenggara province, and the East Nusa Tenggara province are target islands for this project. The total area of these four provinces is 153,157 km 2, and accounts for 8.2% of the whole Indonesian land. The total population of these four provinces was 10,639,000 according to the national population estimation for 2005, and it accounts for 4.9% of the entire Indonesian population. The regional Gross Domestic Production (GDP) of these four provinces totals 41,949 billion Rupiah (Rp) in 2004, and accounts for 1.8% of the whole Indonesia. Present Status of Power Sector and Economy of Power Generation in Eastern Indonesia The total maximum electric power demand in these four eastern provinces in 2006 was 270 MW, and it accounts for 1.3% of total Indonesia. To supply electric power to this demand, there is 469 MW installed generation capacity in the area. The generated energy in this area in 2006 was iii

16 1,273 GWh, and it accounts for 1.2% of the whole country. The electrification ratio of each province is; 51.6% in Maluku and North Maluku provinces, 28.8% in the West Nusa Tenggara province, and 21.8% in the East Nusa Tenggara province. The electrification ratio in this area is considerably low compared with the national average. It is estimated that the electricity demand in these provinces will increase at an annual average of 7.4% and maximum electric power will reach 1,065 MW in Given that a reserve margin is expected to be 30-40%, it is expected that the necessary capacity of electric power facilities will reach 1,491 MW in The energy source mix of entire nation is well diversified. However, the eastern provinces completely rely on diesel power generation only. This is because the electric system in this area is small-scale due to isolated islands. However, the diesel power generation becomes extremely expensive under the current international oil price hike. The price of diesel fuel (HSD) was predicted to become 0.62 US$/litter in 2006 from 0.07 US$/litter in 2000, showing the expansion of as much as some 9 times more. As a result, the generation cost of diesel power plant of PT. PLN was predicted to become approximately 17.6 cents US$/kWh in 2006, making diesel power generation the most expensive one as well as gas turbine generation. In contrast, the generation cost of geothermal power plant in 2006 was 6.3 cents US$/kWh. The diesel generation cost was 2.8 times higher than that of geothermal power generation and there was the cost deference of 11.5 cents US$/kWh between both the costs. The international oil price was 66 US$/barrel in 2006, and it has been continuously increasing afterwards and has exceeded 110 US$/barrel in Due to this oil price increase, the price of diesel oil is also rising continuously. The price of diesel oil for industrial use in the eastern provinces which PT. PERTAMINA announced on March 1, 2008 becomes US$/litter. Based on this new diesel oil price, the fuel cost of diesel generation in the eastern provinces is estimated as high as approximately 26 cents US$//kWh. This high fuel cost is a great heavy burden on the financial foundation of PT. PLN. The volume of diesel oil used in the eastern provinces was about 347,000 kilo litter in The cost of this diesel fuel is estimated as much as 325 million US$ based on the current diesel oil price (0.936 US$/litter). Therefore, if the base-load demand is supplied by geothermal power plant instead of diesel power plant, about 214,000 kilo litter of diesel fuel, which accounts for about 62% of total fuel consumption, can be saved in one year. The value of this fuel saving is about 200 million US$ based on the current diesel oil price. There is a great justification to promote geothermal energy development to substitute diesel power plant in the eastern provinces. There is no doubt that the geothermal power development in the eastern provinces as substitutes of diesel power contributes to inhabitation of financial deterioration of the Government and PT. PLN. Prevention of Global Warming Geothermal power development is generally expected as effective countermeasure against the global warming for conservation of global scale environment due to carbon dioxide gas emission of very low content from the power plants. Indonesia has a plenty of untapped geothermal-resources and remarkable reduction effect of the CO 2 emission even in the eastern provinces can be expected, if the geothermal power is used as alterative energy of fossil fuel. iv

17 Most of all geothermal power developments in the eastern provinces must be regarded as the excellent CDM project. Carbon credits produced from these geothermal projects are necessary for not only developed country and Indonesia but also countries of the world for preventing the global warming. 3. Geothermal Resources in Eastern Indonesia Indonesia is blessed with abundant geothermal resources. The 253 geothermal areas were identified in Indonesia. The total potential was estimated as approximately 27,791 MW (DGMCG, 2005). In the eastern provinces (Nusa Tenggara and Maluku provinces), 37 geothermal fields were identified by DGMCG (2005), which total potential was estimated as 1,914 MW. Only two fields in the eastern province, Ulumbu and Mataloko have been studied by well-drilling to confirm reservoir conditions. Promising geothermal resources were confirmed by well discharges from high temperature reservoir. The other fields have been investigated at various levels commensurate with the development perspectives of each field. In 9 fields, Huu Daha, Wai Sano, Ulumbu, Bena-Mataloko, Sokoria-Mutubusa, Oka-Larantuka, Atadei, Tulehu and Jailolo, geothermal resource potentials had been evaluated by JICA (2007) based on some geoscientific data of reconnaissance studies or detail study data, and the data and the study results in these fields were reviewed in this study. Electricity of 110MW was planned to be generated by geothermal development of these 9 fields in the Master Plan study and 20 MW geothermal power development was recommended in the feasibility study of geothermal development in Flores. Except of 9 fields as listed above, exploration statuses are not clarified because available geoscientific data in these fields could not be obtained in this study. Except for Ulumbu and Mataloko, the present status of geothermal resources development is reconnaissance study level. These data allow estimating probable prospect area and probable heat source, and also allow establishing the sequence and geoscientific methods to use in the next stages of development. However, the data and information of geology, geochemistry and geophysics in the fields are not enough to make geothermal reservoir model and to evaluate generation power capacity of their fields. Therefore, geoscientific studies for clarification of characteristics and structure of the geothermal resources should be conducted as resource feasibility study in the fields in the eastern provinces except for Ulumbu and Mataloko. After the geoscientific surface study, exploratory well drilling and well test should be conducted to confirm geothermal resource existence and to evaluate its capacity. The current practical plans for geothermal development/expansion projects were confirmed through interviews during a mission trip to Indonesia. In the two fields of Ulumbu and Mataloko, small-scale power developments have been planned by PT. PLN. In addition, PT. PLN has actual plan of resource development in Hu u Daha, Jailolo, Tolehu and Sembaiun. Development priority of these fields is regarded to be high, because resource existence in some of fields were confirmed and development risk at initial stage must be relatively low. v

18 4. Necessary Assessment and Current Information of Environmental Aspect Necessary environmental study for construction of power plants and present status in and around the promising fields in the eastern provinces were checked in this study, for considering the feasibility of the geothermal power development projects. Regarding environmental regulations on geothermal power projects, environmental condition and impact in the objected area of the geothermal power project, whose capacity is more than 55MW, should be checked by application of Environmental Impact Assessment (AMDAL). The AMDAL in specific geothermal power projects in and around legally protected areas should be prepared, even if their development capacity is less than 55MW. In case that AMDAL is not nessesary, Environmental Management Effort (UKL) and Environmental Monitoring Effort (UPL) should be submitted according to the requirement of the ministry decree No. 86/2002. Geothermal power development activity can be conducted in the forest restricts in special circumstances. Government Regulation No.2/2008 approves geothermal power development activity in protection forest and production forest in exchange for tariff or government income on using forest area. Geothermal power development activity in kinds of the conservation forest is not allowed according to government regulation No.41/1999. The project implementation body should pay attention about the location of prospect which may be included in conservation forest. There are 37 geothermal prospects in the eastern province according to the data of Geological Agency of MEMR. 11 of 37 prospects were checked the geographical relation between prospects and the conservation forest. There are no serious environmental problems to precede the projects in the objected areas at present. However more detailed information on environment should be collected before starting the project. The forest condition of the other 26 prospects should be confirmed when the project areas are selected. 5. Implementation Plan Since urgent commencement of geothermal power development in the eastern Indonesia is considered to be necessary and pilot project of geothermal power development should be started as soon as possible, because of inflationary cost rise of fossil fuel for the diesel power generation, small scale geothermal power plant of 35MW in total is proposed to MEMR as appropriate project scale and period. Considering commencement of operation of geothermal power plants as soon as possible, the support by ODA Yen Loan is considered to be sufficient for construction of 35 MW geothermal power plants as pilot projects. Based on the discussion among the MEMR, Ministry of Finance(MOF) and National Development Planning Agency(BAPPENAS), the procedure for registration of Blue Book will be started by MEMR as a project of PT. PLN. Project Preparation Based on information such as location of diesel power plant and transmission/ distribution line, vi

19 consumer power demand, potential and characteristics, promising areas of geothermal power development will be selected for diesel power substitution and the detailed project program of each field development will be prepared. For deciding detailed description and program of the project, this work should be preferably conducted before starting the project by preliminary surface studies. These studied should be entrusted to consulting firm of geothermal development. However, if possible, these studies are desired to be conducted as preparation study by support from Japan, as described later. Resource Development for Securing Geothermal Steam Surface resource survey such as geology, geochemistry and geophysics will be carried out at selected geothermal prospects for the purpose of confirmation of resource existence, delineation of the geothermal reservoirs and decision of exploration drilling targets. Necessary resource studies should be conducted in the project for securing geothermal steam. After conducting the necessary surface resource studies, data collected from these studies will be summarized using the database software. An Integrated analysis will be carried out using the database for preparing the geothermal conceptual model. Since special technologies and experiences are necessary for these studies and the studies for securing steam are the most important in the geothermal power development, these studies should be entrusted to consulting firm of geothermal development. Based on the results of surface survey, twenty-eight exploratory wells will be drilled at prospects in the eastern Indonesia. The wells, which will be succeeded in steam production, will be used as production wells. Moreover, seven reinjection wells will be drilled and wastewater will be injected under the ground through these wells. Well drilling will be undertaken by drilling company (or the government institute; Center for Geological resources, Geological Agency). In case of employment of private drilling company, the company will be selected through international bidding. Some material and equipment for drilling will need to be procured through international bidding. Highly capable drilling supervisors should be hired for smooth drilling works. Usually geothermal consultant firm can dispatch such supervisors. After well drilling and test, all geoscientific data will be consolidated into a conceptual model, and the evaluation of the geothermal potential will be conducted through the application of numerical modeling techniques using this conceptual model (reservoir simulation). This study should be entrusted to geothermal consulting firm, the reservoir simulation for getting reasonable results on resource output capacity requires state of the art. Geothermal Power Plant Construction Based on the results of the geothermal resource evaluation carried out before plant construction stage, the optimum development plan of available power output will be formulated. The design of geothermal power plants will be conducted on the basis of characteristics of geothermal fluid and development plan. The detailed planning and power plant design should be entrusted to experienced geothermal-consulting firm. vii

20 Small scale power plants of 35MW in total will be constructed after the resource survey and the well drilling. If adequate power output of each plant is estimated 5MW in the project preparation study, 7 power stations will be constructed at least. In order to shorten the construction period, the power plant will be constructed on "single package full-turnkey" basis in which a sole contractor will undertake engineering, procurements, supply, installation, test and commissioning. The contractor will be selected through international bidding. The transmission line and substation system will include transmission line from main transformer to a substation, circuit breakers, disconnecting switches, bus, CT, VT, arrestor, supporting structure, insulators, protective relay board and ancillaries. Substitution of diesel power by geothermal power is very auspicious as the CDM project. The effect of GHG (Green House Gas) emission reduction is 0.8(t-CO2/MWh) in case of the generation capacity bigger than 200kW. Based on the results of geothermal reservoir simulation and conceptual design of geothermal power plant, the GHG emission reduction by this project will be estimated and the procedure for registration of CDM project will be started. Since geothermal power development from geothermal resource development to power plant construction requires special technologies, the project executing agency, PT. PLN, will employ a consulting firm that has sufficient experience in all the stages for geothermal resource development and construction of geothermal power plant, transmission line, substation, and distribution lines, for smooth project management. PT. PLN as Implication Agency of Geothermal Power Development in Eastern Indonesia PT. PLN was nominated as the executing agency of this project by MEMR, because the following background was considered for realizing the project. This project promotes the efficiency and diversification of power supply of in the eastern provinces, which are composed of the remote and isolated islands, and this project is composed of the small scale geothermal power construction projects utilizing renewable geothermal energy. PT. PLN can undertake the once-through power development, i.e. the whole scope of the project from the geothermal resource development to the power generation, transmission and distribution. PT. PLN is responsible for power supply in Indonesia, and PT. PLN has ample experiences in implementation of the construction projects of the geothermal power plants, the transmission lines, substations and distribution lines. PT. PLN can assign their geothermal specialists as the key person for implementation of the development project from resource survey to power plant construction. PT. PLN is believed to have enough capacity to develop geothermal power plants in the eastern provinces. Project Schedule and Cost viii

21 A tentative implementation schedule of the project is prepared. The project takes 81 months after commencement of the project (Loan Agreement Effectiveness) for resource survey for the first power plant until the commercial operation start of the last power plant. This period should be changed depending on the planning in the preparation study. If this project starts in November 2008, the project completion will be in July Total project cost is estimated to be 161miliom USD. PT. PLN is responsible for procuring the financial resources needed for the implementation of the project. It is assumed that JBIC will participate as financier under the Yen Loan scheme. 6. Economic Assessment of Planned Projects The economic viability of the planned project was evaluated by an EIRR method in this study. The project economy of the geothermal power projects in the eastern province was calculated using conditions clarified in the previous studies and assumed in this study. Since programs on the power plant construction in various fields could not be prepared due to shortage of resource potential data, the project cost of each power plant construction could not be calculated. Therefore, the construction of power plants in various fields was regarded as one project of 35 MW and general values of each components of geothermal power development were used for cost estimation of the geothermal power plant construction including steam development. An alternative power project that is capable to give the same services (salable energy) as geothermal power was assumed, and net present value of costs for the geothermal project was compared with that for the alternative project for project life, in order to obtain EIRR. As the alternative power source, a diesel power was selected. The project could dominate the alternative project as the project EIRR stands at 39.5 % while the hurdle rate is 12 %. The capacity factor was assumed to be 85 % in this evaluation. The fuel cost will be saved as much as USD million every year, US$ 1, million in total for the period of project life. Although initial investment for geothermal power project is much higher than the alternative, the geothermal can generate electric energy without using fuel. This enables to export fossil fuel instead of domestic consumption and to acquire foreign currencies. A FIRR method was applied to this project for evaluation of the project economy. In this study, an internal rate of return to equalize the cost (investment and operating costs) and revenue by sales of energy generated for the project life were calculated. The obtained rate was compared with the opportunity cost of capital. The calculated FIRR value was %. As this value much exceeds the WACCs at 2.35 %, the project is judged to be financially feasible under present conditions. Using the FIRR method and the results of the Mater Plan study, the possibility of introduction of private sector into geothermal power business in the eastern province was discussed in this study. Most of all private companies in Indonesia are considered to aim FIRR of 16%, which was announced as adequate value in the private project by the Government. Assuming FIRR of 16%, adequate electricity tariff was calculated and cash flow of the project was checked in this study. It was revealed that the private companies would suffer from a deficit of more than 50 ix

22 million USD every year, even if the tariff and the FIRR were relatively high. The debt for working funds will be heavy load for private company. Since adequate tariff rate was obtained to be 14 cent/kwh in case of FIRR of 12 % for government s or government owned corporation s project, this project can bring about the maximum reduction effect of subsidy by the Government for electricity power business in the eastern provinces. As described above, the geothermal power development projects by the private sector as substitutes of diesel power are under difficult condition of economy, because costs of construction and operation of geothermal power plants in remote islands of the eastern ss are relatively high, compared with those in main islands such as Java, Sumatra and Sulawesi. However, the Government or the government owned corporation can conduct more economical management of the geothermal power projects in the eastern provinces, because FIRR desired by them is low and they can use ODA soft loan such as Yen Loan etc. If they conduct geothermal power development in the eastern provinces, the Government s burden for electricity supply to these provinces is believed to be reduced remarkably. 7. Potential of CDM Projects The geothermal power generation is considered that the amount of the CO 2 emission at the life cycle is less than that of other power supplies. Moreover, the geothermal power plant generates an electric power that is high utilization rates, bigger than the other renewable energy. Therefore, since a big effect of the CO 2 emission reduction by the geothermal project can be expected, the project is attractive as the CDM project. The small scale geothermal power development activity of SSC is categorized as Type-I in the CDM program. Type-I is recognized as renewable energy project activities with a maximum output capacity equivalent to up to 15 MW (or an appropriate equivalent). The small scale geothermal power plant of the project is connected to a grid so that the methodology will be applied for AMS I.D. AMS I.D is used for renewable electricity generation for a grid. Since emission reduction factor of AMS I.D for small scale geothermal power generation is difficult to estimate using the installed capacity and utilization rates, the reduction factor of 0.8(t-CO 2 /MWh) is applied to the power plant of bigger than 200kW. In case of the small scale geothermal plants of 35MW, the effect of the emission reduction of (kt-co 2 /year) is expected. 8. Project Preparation The first development target was decided to be power plants construction of 35 MW in total in the meeting among MEMR, BAPPENAS, MOF and PT. PLN on 12 March 2008, considering power demand in the eastern provinces and project support from Japan. The support by the Japanese ODA Yen Loan is strongly expected for avoiding a deficit in the project economy. Therefore, the project must meet the requirements of the ODA Yen Loan project such as x

23 information on project feasibility including estimation of geothermal resource potential, development program, environmental constraints etc. The Government and PT. PLN have studied geothermal power development in eastern provinces and the Japanese Government supported their activity through the research study by NEDO and the feasibility study by JETRO. However, these study projects have concentrated on the Flores Island. About geothermal areas other than the Flores Island, there is no adequate data for preparation of geothermal power development plans. For realizing the development projects by the Japanese ODA Yen Loan, project feasibility of the geothermal development in each field should be clarified on the basis of data of geothermal resource, future power demand and environmental constraints, before starting the development project. As described in this report, existence of high potential geothermal resources and necessity of geothermal power projects in the eastern provinces can understood from the existing data, but adequate and capable power output and characteristics of geothermal resources in each field have not been revealed. Therefore, detailed program of geothermal power development in each field could not be prepared in this study. Collection and analysis of the geoscientific data and programming are indispensable before starting the project. When the geothermal power development including the steam development is planned, geological data and geochemical data for revealing the resource characteristics and potentials are generally collected by the surface surveys in consideration of reduction of the project cost and risk. Since it takes a considerable amount of time and cost to conduct whole surface surveys including geophysical survey, these detailed surveys in the selected fields should be conducted in the main project. Since the project contains the entire development plans in various islands, study program and development plan of each field should be prepared based on the geothermal resource data by preliminary geological survey and geochemical study, and data and information of predicted future power demand and environmental constraints, before starting the main project. At present, since data and information on the feasibility study of geothermal fields in the eastern area have been partially collected, the resource data should be collected by the preliminary geological survey and geochemical survey and development program should be prepared. Regarding geothermal power development in the Flores Island, some parts of development plan should be modified in accordance with present development policy by PT. PLN. It is thought that a more certain project becomes possible despite of containing of securing steam in resource development study, if these preliminarily resource surveys and project planning are conducted before start of the development project supported by Yen Loan. If the project is supposed to be supported by ODA Yen Loan, it is desired that the preparation study is conducted using JBIC scheme of SAPPROF (Special Assistance for Project Formation). xi

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25 Chapter 1 Introduction 1.1 Outline of Study Facing the soaring fossil fuel oil cost and for contribution to the global environmental preservation, the Indonesian Government tries to develop nationwide geothermal development positively. It formulated a geothermal power development plan of 9,500 MW, more than ten (10) times of the so far developed capacity, by the year 2025, and enacted the Geothermal Law to implement the plan. In November 2007, the by-laws of the Geothermal Law has been promulgated and in major geothermal fields in Java, Sumatra and Sulawesi, PT. PERTAMINA, PT. PLN and private sector launched several large scale geothermal power development project. Under the circumstances above, the Japan Government extended the technical assistance of the Geothermal Master Plan study in Indonesia by JICA. By the Master Plan Study, the geothermal power resource potential, required power demand, environmental conditions, etc. were surveyed in geothermal fields in the whole Indonesia, and then corresponding geothermal power development programs were formulated. The Master Plan Study report was highly evaluated as it may contribute to hastening the geothermal power development in the country. Based on the Master Plan Study results, the Government tries to accelerate the geothermal power development making use of Public-Private-Partnership (PPP) scheme. The electricity in archipelago in the eastern part of Indonesia heavily relies on diesel power, the generating cost of which has been doubled by soaring fuel cost and transportation cost. The Master Plan also pointed out the fact that the inflationary cost of the fuel caused the distress of the Government, and oppressed both the PLN s financial conditions and the Government electricity subsidiary budget. The Ministry of Energy and Mineral Resources (MEMR), through the Master Plan Study, fully understands features of a geothermal power and its high potential in these areas, and found out the possibility to substitute the diesel power with fuel cost-free geothermal power. Understanding that the substitution of diesel power with geothermal would greatly contribute to curtailing the consumption of fuel oil, reduction of the government subsidies, and moreover, to stable power supply and global warming gas (CO 2 ) reduction, the Government has started with the study for implementation. Owing to limited power demand in isolated islands, the geothermal power scale may probably be a total capacity of less 10 MW per site that is too small to give incentives to a private sector. So, the geothermal development in these areas would be led by the central or regional government. The MEMR headed by the Minister considers that the diesel substitute geothermal undertaking at the eastern provinces is the most significant project of the projects needing the Government assistance, and proposes assistance from Japan, the Japanese Yen Loan in particular. The intention has been forwarded to JBIC from the DGMCG of MEMR. So far, no feasibility study except for some fields in Flores has been done for this purpose. Thus, 1

26 the study for the program preparation needed for application of the Yen Loan, and the coordination with the relevant agencies about the prepared draft planning are indispensable to attain the Government objective. With this Assistance Services by ECFA, if the study for geothermal development in the eastern regions and coordination among the agencies in Indonesia could be attained, the economic assistance from Japan would be realized and the small scale geothermal power development to substitute diesel power could be forwarded as the Indonesian Government earnestly has been expecting. The development of geothermal power would greatly contribute to substitution of the fossil energy consumption and to prevention of global warming. 1.2 Background Project Identity in Government Geothermal Development Plan Under the order of the Minister of Energy and Mineral Resources in RUKN (April 2005), the mission of power sector outside Java is outlined as follows: To prioritize power generation with renewable energy in remote and isolated local areas where small scale power is required The policy of using primary energy for power generation consists of both the measures utilizing local primary energy sources and new/renewal energy sources. The utilizing local energy measures means to utilize fossil energy and non-fossil energy. The utilization of local primary energy places priority on utilization of renewable energy in view of environmental safety, technical possibility and economic efficiency. To promote utilization of renewable energy for power generation, the national policy is clearly stated that energy utilization with geothermal, biomass and hydro shall be over 5% in 2020 in Indonesia. In remote island far from the national grid, main power sources rely on mostly diesel power, and those high operation and maintenance costs (fuel purchase cost, fuel transportation cost, latest price inflation of oil, and low availability factor of facilities) has caused severe profit losses year by year. In addition, because diesel power generation emits greenhouse gases such as carbon dioxide, the Indonesian Government has tried to convert it to other renewable energy power sources. The geothermal development master plan formulated by the MEMR based on the JICA Master Plan is consist of a) A large scale development by PT. PERTAMINA /PLN and private sectors at the geothermal fields where the transmission grids in Java, Bali, Sumatra and Sulawesi are accessible: and b) Independent, small scale geothermal power development by the Government or PT. PLN. 2

27 The geothermal power development in the eastern part of Indonesia is identified corresponding to the later one above. This geothermal power development in the eastern part of Indonesia aiming at substitution of diesel power is a high priority project as MEMR s own project and advocated by the Minister of MEMR himself. As this project has been clearly and frequently identified and mentioned at the government seminar (BAPPENAS) and other government publications, it is a significant and important energy development project for promotion at the economically deterred areas Power Situation and Rural Electrification In 2006 statistics, the power demand (sold energy) recorded at 112,610 GWh, and the peak demand at 20,354 MW. The total installed capacity of PLN was 25,258 MW with a generation of 104,467 GWh. In addition, the enegy of 28,640 GWh was received from power generator other than PLN. The power mix of PLN was, 8,220 MW (32.5%) by thermal, 7,021 MW (27.8%) by combined cycle, 3,529 MW (14.0%) by hydro, 2,941 MW (11.6%) by diesel, 2,727 MW (10.8%) by gas-turbine, and 807 MW (3.2%) by geothermal. Most of the geothermal units are located in Java, and geothermal units are under construction in Sulawesi, and a large scale geothermal power development has been planned in Sumatra. No practical geothermal development project has been planned in the eastern part of Indonesia. The following are the electric power situations in the objective provinces: 1) West Nusa Tenggara The peak demand in the year 2006 was 1116 MW and total power generation 579 GWh in scattered power systems. Net system energy demand was 508 GWh in 2006, which breaks down as 333 GWh (65.6%) for household use, 113 GWh (22.3%) for commercial use, 10 GWh (2.0%) for industrial use, and 55 GWh (10.2%) for public use. The electrification rate of the province in 2006 reached 28.8%. 2) East Nusa Tenggara Maximum electric power in 2006 was 72 MW, and generated output was 313 GWh. The entire load is supplied by isolated power sources. Net system energy demand was 280 GWh in 2006, which breaks down as 178 GWh (63.5%) for household use, 50 GWh (17.9%) for commercial use, 9 GWh (3.2%) for industrial use, and 43 GWh (15.4%) for public use. The electrification rate of the province in 2006 reached 21.8% 3) Maluku Island The Maluku Island is divided into Maluku Province and North Maluku Province, but the electric supply is made by PLN as one region in the name of Maluku Region. Maximum electric power demand in 2006 was 83 MW, and generated output was 382 GWh. The entire load is supplied by isolated power sources. Net system energy demand was 341 GWh in 2006, which breaks down as 226 GWh (66.3%) for household use, 63 GWh (18.6%) for commercial use, 6 GWh (1.9%) for industrial use, and 45 GWh (13.2%) for public use. The electrification rate of the province in 3

28 1.3 Objectives 2006 reached 51.6%. The purpose of the study is to survey geothermal resources and formulate a practical development plan making best use of the resource for substitution of geothermal power generation with existing and planned diesel power in West Nusa Tengara, East Nusa Tengara and Maluku and North Maluku Provinces. The study and planning is carried out in due consideration of application for Japanese Yen Loan in the next Japanese fiscal year. 1.4 Scope of Work The following studies will be carried out in the Study: Present situation of energy and geothermal development Geothermal resources in the eastern provinces Environmental and social aspects Development program of geothermal resources Economic and financial evaluation Action plan for JBIC ODA Loan Project potential for CDM 1.5 Study Area West and East Nusa Tenggara, Maluku and North Maluku, Indonesia 1.6 Future Initiative In this geothermal development plan aiming at substituting diesel power, the geothermal power capacity per site may be approximately less than 10 MW. Due to economy of scale, the generating cost may be comparatively higher than the large-scale development. So, the development should be undertaken mainly by the Government or the Government owned corporation (PT. PLN ). In consideration of the fact above, the introduction of JBIC ODA Loan with a very soft loan conditions will become significant. According to the Master Plan published at open workshop in August 2007 by DGMCG-JICA, the geothermal power development in these areas is to start with resource survey (resource exploration and exploratory well drilling) from 2010, (partly from 2008) and the geothermal power units is to commission in 2016 to As the Indonesian Fiscal is to start January, the start of resource survey may be from January to March 2009, and then, a few years will be taken for confirmation of steam production. Though the Master Plan specifies the bidding for actual implementation for power generation facilities in these areas, the assistance of the Government 4

29 or PT. PLN becomes necessary once the JBIC ODA Loan should be extended for the project. The ultimate purpose of this study is that the project should be included in the Government Blue Book by March 2008, a list of the projects which the Government is to make application for Japanese Yen Loan. Then, the project will be appraised by JBIC within 2008, and if the Loan for the project should be committed by the end of 2008, it is possible to start the undertaking of the project in the year However, contents of the study and existing feasibility study report does not seem to be enough to start the development project, it is recommended that preliminary resource study and preparing of the project should be conducted before starting the project. This project is the development of a renewable energy resource and applicable for a small scale CDM specified by the Kyoto Protocol. The project is signification not only for Indonesia but also for Japan. 1.7 Study Team Persons in charge of the study are listed below. Table 1-1 Study Team Members No. Name Specialty 1 Kan ichi SHIMADA Team Leader, Development Planning 2 Masahiko KANEKO Power Sector Analysis 3 Hiroshi NAGANO Resource Potential Evaluation and Power Generating System 4 Hiroyuki TOKITA Environmental and Social Analyses 5 Toshimitsu MIMURA Geothermal Resources Evaluation and Economic Evaluation 6 Yoshio SOEDA Geothermal Resources Evaluation 1.8 Study Schedule Two trips to Indonesia were conducted for this study. Both of the surveys were to have a meeting with institutions concerned and responsible persons and gather relevant information. The first survey was conducted from February 10, 2008 to February 16, The second survey was carried out from March 9, 2008 to March 14, Detail activities of the surveys in Indonesia are shown in Tables 1-2 and

30 Table 1-2 Schedule of First Trip in Indonesia No. Date Schedule Stay 1 10-Feb-08 Sun Traveling: Fukuoka to Jakarta Jakarta 2 11-Feb-08 Mon Meeting with Center for Geological Resources, Geological Agency Jakarta 3 12-Feb-08 Tue 4 13-Feb-08 Wed 5 14-Feb-08 Thu 6 15-Feb-08 Fri Meeting with Agency for the Assessment and Application of Technology Metting with Directorate General of Mineral, Coal and Geothermal, MEMR Meeting with PLN Meeting with Directorate General of Electricity & Energy Utilization Meeting with Agency for the Assessment and Application of Technology Team Meeting Metting with Directorate General of Mineral, Coal and Geothermalo, MEMR Traveling: Jakarta to Fukuoka Jakarta Jakarta Jakarta Fly Overnight 7 16-Feb-08 Sat Traveling: Fukuoka to Jakarta - Table 1-3 Schedule of Second Trip in Indonesia No. Date Schedule Stay 1 09-Mar-08 Sun Traveling: Fukuoka/Tokyo to Jakarta Jakarta 2 10-Mar-08 Mon Metting with Directorate General of Mineral, Coal and Geothermal, MEMR Meeting with PLN Jakarta 3 11-Mar-08 Tue Meeting with Directorate General of Electricity & Energy Utilization Team Meeting Jakarta 4 12-Mar-08 Wed Meeting with National Development Planning Agency Meeting with Agency for the Assessment and Application of Technology Jakarta 5 13-Mar-08 Thu Meeting with JICA Meeting with JBIC Meeting with PLN Traveling: Jakarta to Fukuoka/Tokyo Fly Overnight 6 14-Mar-08 Fri Traveling: Jakarta to Fukuoka/Tokyo - 6

31 Chapter 2 Necessity of Geothermal Development in the Eastern Provinces 2.1 Background of Geothermal Power Development in Indonesia Indonesia suffered the largest impact among ASEAN countries in the Asian economic crisis in However, the Indonesian economy has shown a great improvement after the crisis due to the results of various policy reforms and supported by the inflow of investment from foreign and domestic sources. Thus, the Indonesian economy is expanding steadily, and the electric power demand is also increasing rapidly. The peak power demand of the whole country reached 20,354 MW in 2006 and showed the 5.1% increase from the previous year. The amount of energy demand in 2006 also records 113,222 GWh, the 5.1% increase from the pervious year. The National Electricity Development Plan 2005 (RUKN 2005) estimates that the peak power demand of the country will increase at the average annual rate of 7.5% and will reach 79,900 MW in It also estimates that the energy demand will increase at almost same rate and will reach 450,000 GWh in In order to secure stable energy supply, the development of power plants which meets these demand is one of the urgent issues of the Indonesian power sector. Since the demand in the Java-Bali system accounts for 77.2%of the total country, the power plant development in this system is most important. But the power development in other system is also very crucial because the power demand will increase rapidly due to the expansion of the rural electrification and rural economy. Another urgent issue that the Indonesian power sector faces is the diversification of energy sources. In the light of high oil price, it is necessary to reduce oil dependency in energy source in order to reduce generation cost and to secure stable energy supply. For this purpose, Indonesian government worked out "National Energy Policy (NEP)" in 2002, and set the target of supplying 5% or more of the primary energy by renewable energy by To achieve this target, the government put the important role on geothermal energy which exists affluently in the country. 2.2 Significance of Geothermal Energy Development The utilization of geothermal energy has already a long history and more than 8,000 MW capacity of geothermal energy has been exploited in the world. Notwithstanding one form of natural energy, geothermal energy production is extremely steady with less fluctuation caused by weather or by seasonal condition. Moreover, since it is a domestically produced energy, geothermal energy greatly contributes to the national energy security. In addition, in a country which largely depends on imported energy, the exploitation of geothermal energy favorably contributes to the national economy through the saving of the foreign currency. In a country which exports energy, the exploitation of geothermal energy also contributes to the national economy through acquisition of foreign currency in payment. In addition, since geothermal energy does not use fuel in its operation, it is insusceptible to the fuel price increase caused by increase of international oil price or depreciation of currency exchange rate. From environmental viewpoint, geothermal energy has little environmental impact such as air 7

32 pollution because there is no combustion process in geothermal power plant. Moreover, it is a global-environmentally friendly energy because the CO 2 exhaust is also extremely little from geothermal power plant. Additionally, geothermal energy can contribute to regional development through utilization of hot water from the power plant. The development of geothermal energy has a great significance for the national economy and the people s life. 2.3 Current State of Geothermal Energy Development in Indonesia It is said that Indonesia has the world-biggest geothermal energy potential, which is estimated as more than 27,000 MW and is though to account for more than 40% of world total potential. Therefore, the development of geothermal power has been strongly expected in order to supply energy to the increasing power demand and to diversify energy sources. Today, geothermal power plants exist in seven fields in Indonesia, i.e. Kamojang, Darajat, Wayang-Windu, Salak in west Java, Dieng in Central Java, Sibayak in north Sumatra, and Lahendong in north Sulawesi. The total power generation capacity reaches 857 MW. However, although this capacity is the forth largest in the country-ranking in the world, Indonesia has not fully utilized this huge geothermal potential yet. Indonesian economy has showed a good recovery from the Asian economic crisis, and has been continuously expanding in these years. Accordingly the domestic energy demand is also expanding. On the other hand, the oil supply has decreased due to depletion of existing oilfields or aging of the production facilities. As a result, Indonesia changed its status form an oil-export country to an oil-import country in Having been urged by such situation, the Indonesian Government decided to diversify energy sources and to promote domestic energy sources in order to lower oil dependency. The Government worked out "National Energy Policy (NEP) in 2002, and set a target of supplying 5% or more of the primary energy by renewable energy by In addition, the Government promulgated the Presidential Decree on the National Energy Policy (PD No.5/2006) in 2006, and enhanced the NEP from ministerial level policy to the presidential level policy. On the other hand, the Government enacted "Geothermal Law" for the first time in 2003 to promote the participation of private sector in geothermal power generation. Moreover, Ministry of Energy and Mineral Resources worked out "Road Map Development Planning of Geothermal Energy" (hereafter Road Map") to materialize the national energy plan in In this Road Map, a high development target of 6,000 MW by 2020 and 9,500 MW by 2025 is set. Thus, a basic framework for geothermal energy development has been formulated and the Government has started its efforts to attain these development targets. 2.4 Methodology to Promote Geothermal Energy Development in the Eastern Provinces In September 2007, Japan International Cooperation Agency (JICA) has submitted the final report on "Mater Plan Study for Geothermal Power Development in the Republic of Indonesia, which aims to study the concrete strategy to attain the Road Map of Geothermal Development. This study has evaluated and classified 73 promising geothermal fields in Indonesia into the range of rank A to rank N, and has proposed the method of promoting each field in the 8

33 future. The outlines are as follows; (i) the economic incentives such as the ODA finance for Pertamina and the increase of purchase price for private investors are necessary to promote the Rank A fields (the most promising fields), (ii) the preliminary survey by the geothermal promotion survey which includes test drilling by the government is necessary to promote private investors participation in the Rank B and the Rank C fields (the promising fields without test drilling holes), and (iii) The governmental development activities are indispensable to promote small geothermal energy resources in remote islands in the eastern regions since private investors are unlikely to promote these small geothermal resources in these regions. Speciffcally, the report proposes the following wat as for how to promote geothermal fields in the remote eastern islands; Basic Strategy for Geothermal Field Development in Remote Islands There are some geothermal fields in remote islands in rank A, B, and C. In these fields, development of geothermal resources will be small-scale because the power demand in the system is not so large. In such small systems, geothermal power plant is the most economic advantageous power source, because other power plants can not utilize the scale-merit in construction cost. Therefore, geothermal development in such small systems should be positively promoted in order to decrease the generation costs. Moreover, the geothermal development is also desired to promote rural electrification in such small islands, as the National Energy Plan aims at 90% of nationwide electrification or more by However, in such remote islands, the development by private developers cannot be expected because the project scale is too small for business scale. In such remote islands where private sector is unlikely to participate, the Government should play the central role of development. In such fields, as the development scale is small, there is a possibility of converting succeeded exploration wells into production wells. Therefore, the construction of a small power plant by PT. PLN or by local government company may be easy if the Government succeeds to drilling steam wells in the survey and transfers the wells to the power plant operator. The governmental survey is highly expected in the fields in the table below. 2.5 Social Situation of the Eastern Provinces The main purpose of this study is, based on the above-mentioned proposal, to formulate a project which promotes geothermal energy development in the eastern provinces in Indonesia by the Indonesian Government. It also surveyed the possibility to utilize Yen Loan for the project finance. The surveyed area in this study is the eastern part of Indonesia, which consists of small islands. Specifically, the area is the Maluku province, the North Maluku province, the West Nusa 9

34 Tenggara province, and the East Nusa Tenggara province. In the PT. PLN service, Maluku province and North Maluku province have been treated as one service region. The total area of these four provinces is 153,157 km2, and accounts for 8.2% of the whole Indonesian land. The total population of these four provinces is 10,639,000 according to the national population estimation for 2005, and it accounts for 4.9% of the entire Indonesian population. Maluku province has 1,266,000 population (0.6% of the entire nation), North Maluku has 890,000 (0.4%), West Nusa Tenggara has 4,356,000 (2.0%), and East Nusa Tenggara has 4,127,000 (1.9%). The regional Gross Domestic Production (GDP) of these four provinces totals 41,949 billion Rupiah (Rp) in 2004, and accounts for 1.8% of the whole Indonesia. The regional GDP of Maluku province is 4,048 billion Rp (0.2% of the entire nation), RGDP of North Maluku is 2,368 billion Rp (0.1%), RGDP of West Nusa Tenggara is 22,594 billion (1.0%), and RGDP of East Nusa Tenggara is 12,938 billion Rp (0.6%). As these numbers show, these eastern provinces have been greatly behind the development compared with the other provinces in Indonesia. This is mainly due to the geographic characteristic of remoteness of these provinces. The poor population ratio over the total population in these provinces exceeds 16.7% of the Indonesia average; 32.1% in Maluku, 12.4% in North Maluku, 25.4% in West Nusa Tenggara, and 27.9% in East Nusa Tenggara. (Table 2-5). The situation by the province is as follows; Maluku comprises, broadly, the southern part of the Maluku Islands (also known as the Moluccas, Molucca Islands or Moluccan Islands). The main city and capital of Maluku province is Ambon on the small Ambon Island. All the Maluku Islands formed a single province of Indonesia from 1950 until In 1999 the Maluku Utara Regency and Halmahera Tengah Regency were split off as a separate province of North Maluku. North Maluku covers the northern part of the Maluku Islands, which are split between it and the province of Maluku. The planned provincial capital is Sofifi, on Halmahera, but the current capital and largest population center is the island of Ternate. In the sixteenth and seventeenth century, the islands of North Maluku were the original "Spice Islands". At the time, the province was the sole source of cloves. The Dutch, Portuguese, Spanish, and local kingdoms including Ternate and Tidore fought each other for control of the lucrative trade in these spices. Clove trees have since been transported and replanted all around the world and the demand for clove from the original spice islands has ceased, greatly reducing North Maluku's international importance. The population of North Maluku is one of the least populous provinces in Indonesia. West Nusa Tenggara is a province in south-central Indonesia. It covers the western portion of the Lesser Sunda Islands, except for Bali. The two largest islands in the province are Lombok in the west and the larger Sumbawa Island in the east. Mataram, on Lombok, is the capital and largest city of the province. The province is administratively divided into seven regencies and one municipality. Lombok is mainly inhabited by the Sasak ethnic group, with a minority Balinese population, and Sumbawa is inhabited by Sumbawa and Bima ethnic groups. Each of these groups has a local language associated with it as well. Most of the population lives in Lombok. 10

35 East Nusa Tenggara is located in the eastern portion of the Lesser Sunda Islands, including West Timor. The provincial capital is Kupang, located on West Timor. The province consists of about 550 islands, but is dominated by the three main islands of Flores, Sumba, and West Timor, the western half of the island of Timor. The eastern part of Timor is the independent country of East Timor. Other islands include Adonara, Alor, Ende, Komodo, Lembata, Menipo, Rincah, Rote Island (the southernmost island in Indonesia), Savu, Semau, and Solor. 2.6 Electricity Supply and Demand Situation in the Eastern Provinces The total maximum electric power demand in these four eastern provinces in 2006 is 270 MW, and it accounts for 1.3% of total Indonesia. To supply electric power to this demand, there is 469 MW installed generation capacity in the area. The generated energy in the area in 2006 was 1,273 GWh, and it accounts for 1.2% of the whole country. The electrification ratio of each province is; 51.6% in Maluku and North Maluku provinces, 28.8% in the West Nusa Tenggara province, and 21.8% in the East Nusa Tenggara province. The electrification ratio in this area is considerably low compared with the national average. (Table 2-5) It is estimated that the electricity demand in these provinces will increase at an annual average of 7.4% and maximum electric power will reach 1,065 MW in Given that a reserve margin is expected to be 30-40%, it is expected that the necessary capacity of electric power facilities will reach 1,491 MW in (Table2-6) The detail in each province is as follows: Maluku and North Maluku Maluku Island was separated into Maluku Province and North Maluku Province, but the service of PT. PLN (Persero) covers these two provinces as one service area called the Maluku province. Maximum electric power demand in 2006 was 83 MW, and generated output was 382 GWh. The entire load is supplied by isolated power sources. Net system energy demand was 341 GWh in 2006, which breaks down as 226 GWh (66.3%) for household use, 63 GWh (18.6%) for commercial use, 6 GWh (1.9%) for industrial use, and 45 GWh (13.2%) for public use. The electrification rate of the province in 2006 reached 51.6%. It is estimated that the electricity demand in these two provinces will increase at an annual average of 4.3 % and maximum electric power will reach 184 MW in Given that a reserve margin is expected to be 30-40%, it is expected that the capacity of electric power facilities will reach 257 MW in Existing diesel power plants in Maluku and North Maluku is shown in Table North Nusa Tenggara Maximum electric power demand in 2006 was 116 MW, and generated output was 579 GWh. The entire load is supplied by isolated power sources. Net system energy demand was 508 GWh in 2006, which breaks down as 333 GWh (65.6%) for household use, 113 GWh (22.3%) for 1 According to the outlook of RUKN

36 commercial use, 10 GWh (2.0%) for industrial use, and 55 GWh (10.2%) for public use. The electrification rate of the province in 2006 reached 28.8%. It is expected that population growth up to 2025 will average 0.8% annually and regional economic growth is 7% a year. It is expected that maximum electric power will reach 568 MW by Given that a reserve margin is expected to be 20-45%, electricity demand in this province is expected to be 795 MW East Nusa Tenggara Maximum electric power in 2007 was 72 MW, and generated output was 313 GWh. The entire load is supplied by isolated power sources. Net system energy demand was 280 GWh in 2006, which breaks down as 178 GWh (63.5%) for household use, 50 GWh (17.9%) for commercial use, 9 GWh (3.2%) for industrial use, and 43 GWh (15.4%) for public use. The electrification rate of the province in 2006 reached 21.8% It is expected that maximum electric power will increase in incremental steps and reach 313 MW in Given that a reserve margin is expected to be 20-50%, it is expected that the amount of electric power facilities required in 2025 will reach 439 MW. Existing diesel power plants in Nusa Tenggara is shown in Tables 2-8 and Necessity of Geothermal Energy Development in the eastern Provinces The total installed power generation capacity of PT. PLN is 25,258 MW as of 2006, and the breakdown is as follows; 3,529 MW of hydro power, 8,220 MW of steam, 2,727 MW of gas turbine, 7,021 MW of combined cycle, 807 MW geothermal, 2,941 MW of diesel, and 12 MW of others. (Fig. 2-6) The power source mix is well diversified as an entire nation. However, the eastern provinces completely rely on diesel power generation only. This is because the electric system in this area is small-scale due to isolated islands. (Fig. 2-7) However, the diesel power generation becomes extremely expensive under the current international oil price hike. As Fig.2-8 shows, the price of diesel fuel (HSD) becomes 0.62 US$/litter in 2006 from 0.07 US$/litter in 2000, showing the expansion of as much as some 9 times more. As a result, the generation cost of diesel power plant of PT. PLN becomes approximately 17.6 centsus$/kwh in 2006, making diesel power generation the most expensive one as well as gas turbine generation. (Fig. 2-9) In contrast, the generation cost of geothermal power plant in 2006 is 6.3 centsus$/kwh. The diesel generation cost is 2.8 times higher than that of geothermal power generation and there is the cost deference of 11.5 centsus$/kwh between both the costs. (Fig.2-10) The international oil price was 66 US$/barrel in 2006, and it has been continuously increasing afterwards and has exceeded 110 US$/barrel in Due to this oil price increase, the price of diesel oil (HSD oil) is also rising continuously. The price of diesel oil for industrial use in the eastern provinces which PT. PERTAMINA announced on March 1, 2008 becomes

37 US$/litter. Based on this new diesel oil price, the fuel cost of diesel generation in the eastern provinces is estimated as high as approximately 26 cents US$//kWh2. This high fuel cost is a great heavy burden on the financial foundation of PT. PLN Although the geothermal generation cost in the eastern provinces may be estimated to be slightly higher than 6.3 cents US$/kWh which is shown in Fig due to the smallness in the generation capacity, the cost is fur less than the current diesel generation cost. There is a great justification to promote geothermal energy development to substitute diesel power plant in the eastern provinces. The volume of diesel oil used in the eastern provinces is about 347,000 kilo litter in The cost of this diesel fuel is estimated as much as 325 million US$ in a year based on the current diesel oil price (0.936 US$/litter). On the other hand, the ratio between minimum demand and maximum demand in the eastern provinces is estimated to be about 1/3 from the load curve example of Flores island system3. Since the maximum demand in the eastern provinces is 270 MW, the minimum demand is estimated as some 89 MW. Therefore, the base load demand is estimated to account for approximately 62 % of the total energy demand. If this base load demand is supplied by geothermal power plant instead of diesel power plant, about 214,000 kilo litter of diesel oil can be saved in one year. The value of this fuel saving is about 200 million US$ based on the current diesel oil price (0.936 US$/litter). (Table 2-10) The Indonesian Government is providing PT. PLN with a large amount of subsidy to alleviate its financial predicament under the current high oil price situation. It is thought that the above-mentioned diesel oil saving has a great effect to reduce this subsidy. 2.8 Small Scale Power Generation Development of Other Energy Sources The Government is promoting the development of small-scale electricity power generation through solar, micro hydro and biomass power plants as same as geothermal power. The target of these power developments is supposed to be rural electrification. The projects are aimed for disadvantaged villages throughout Indonesia, where many people need electricity and are difficult to reach or far from electricity supply by PT. PLN. According to report by DGEEU (Director General of Electricity and Energy Utilization), 30,000 panels of solar were supplied to these villages for introducing solar home system (SHS) and each household was expected to be received a watt by the SHS unit. Regarding micro hydropower, the Government has developed electric power plants for rural areas, but the development in the eastern islands was not included in this development program. This project s target is not substitution of diesel power but the rural electrification. The Government does not only promote small-scale power plants but also increase energy self-reliant villages. Currently these are 100 villages supplying themselves with energy of l/kwh(average fuel consumption in diesel plant in the eastern provinces) 0.936$/l = 25.6 /kwh. 3 Peak demand was 17.8MW and minimum demand was 5.8MW in the peak demand day in Flores island system in (Fig ) 13

38 non-bio fuel and 40 villages of bio fuel in 81 regencies. This number of the villages is too small compared with whole villages through the country. The projects are aimed for disadvantaged villages throughout Indonesia for electrification. These projects are expanding step by step but substitution of the existing diesel power generation by these power developments seems to be difficult. Adjustment between these developments and geothermal power development in the eastern provinces is necessary and the small-scale power developments by solar, hydro and geothermal should be categorized by energy source existence and power demand. However, if a major target of the power development in the eastern provinces is substitution of diesel power by renewable energy, geothermal power development is the most suitable because of ample reserve of geothermal resources and relatively large generation capacity of each geothermal resource. 14

39 Table 2-1 Geothermal Power Plant in Indonesia and its Development Scheme Power Plant Location Unit No. Capacity(MW) Start of Operation Unit- 1 30MW 1983 Kamojang West Java Unit- 2 55MW Unit-3 55MW 1988 Steam Developer PERTAMINA Power Generator PLN Salak West Java Unit-1 Unit-2 Unit-3 Unit-4 60MW 60MW 60MW 66.7MW 1994(*5) PERTAMINA/ Chevron Geothermal of Indonesia (*1) PLN Unit MW 1997(*5) PERTAMINA / Chevron Geothermal of Indonesia(*1) Unit MW Pertamina/Amoseas Unit-1 55MW 1994 Darajat West Java Indonesia Inc.(AI)(*2) PLN Unit-2 90MW 1999 Pertamina / Amoseas Indonesia Inc.(AI) (*2) Lahendong North Sulawesi Unit-1 20MW 2001 PERTAMINA PLN Sibayak North Sumatra Unit-1 2MW 2000 PERTAMINA Wayang-Windu West Java Unit-1 110MW 2000 Pertamina / Magma Nusantara Ltd (MNL) (*3) Dieng Central Java Unit-1 60MW 2002 Geo Dipa (*4) Total 857MW (Break PLN Power Plant (395MW) Down) IPP Power Plant (462MW) (Source:PERTAMINA; PERTAMINA Geothermal Development(Resource & Utilization) ) (Note) *1 Chevron took over Unocal (Union Oil Company of California), who was the original developer of Salak on Aug *2 Amoseas Indonesia Inc. is a subsidiary of U.S.-based Chevron Texaco. *3 Magma Nusantara is a wholly owned subsidiary of Star Energy. Star Energy acquired W ayang-windu in Nov *4 Dieng Plant was transfer to PT Geo Dipa from California Energy, who was the original developer, through Government of Indonesia in PT Geo Dipa is a joint venture of PERTAMINA and PLN. *5 Renovated in

40 Table 2-2 National Energy Policy The National Energy Policy (NEP) Stable energy supply is essential for achieving social and economic development in any nations. In most countries including Indonesia, domestic energy demand is met mostly from fossil energy sources, particularly for oil while proven reserve of oil is limited in the world. In Indonesia, the contribution of oil was approximately 88% in Although the share of oil has gradually decreased to 54% in 2002, the total oil consumption is relatively high with the growth rate of 6.1% per year. This higher growth is attributed to the economic growth and population growths. However, the per capita energy consumption was relatively low or about KOE (kilo gram of Oil Equivalent) per capita, while the energy intensity is KOE/thousand US$ (at 1995 US$). On the other hand, the renewable energy of Indonesia has very big potential. However, the development is not well developed compared to this big potential. Realizing present energy condition, the government launched the National Energy Policy (NEP) in The vision of this policy is to guarantee the sustainable energy supply to support national interest ; while the missions are: (a) guaranteeing domestic energy supply, (b) improving the added value of energy sources, (c) managing energy ethically and sustainable way and considering prevention of environment function, (d) proving affordable energy for the poor, and (e) developing national capacity. The targets of NEP are: (a) improving the role of energy business toward market mechanism to increase added value, (b) achieving electrification ration of 90% by the year 2020, (c) reaching renewable energy (non large hydro) energy shares in energy mix at least 5% by 2020, (d) realizing energy infrastructure, which enable to maximize public access to energy and energy use for export, (e) increase strategic partnership between national and international energy companies in exploring domestic and export energy resources, (f) decrease energy intensity by 1% per year therefore to the elasticity to be 1 by 2020, and (g) increase the local contents and improving the role of national human resources in the energy industries. To reach this energy targets, strategy have to be taken namely: (a) restructuring energy sector, (b) implementing market based economy, (c) developing regional empowerment in energy sector, (d) developing energy infrastructures (e) improving energy efficiency, (f) improving the role of national energy industry, (g) improving national energy supporting activities (service and industries), and (h) empowering community. To ensure the achievement of the targets, the policy measures to be pursued are: (a) intensification measure is taken to increase the availability of energy in parallel with the national development and population growth, (b) diversification measure is taken to increase coal and gas shares, which have a larger potential than oil and to increase renewable energy shares, which has a huge potential and clean, (c) conservation measures is taken to improve energy efficiency by developing and using energy saving technology both in upstream and down stream sides. In line with the strategies, several action plan have to be done: (a) upstream side(oil, gas, coal, geothermal, hydro power, other renewable energy resource, nuclear energy, other new energy resources), (b) downstream side (petroleum, gas pipeline, gas fuel, and LPG, electricity), (c) energy utilization (household, and commercial sector, industry sector, transportation sector), (d) human resources development, (e) research and development, and (f) community development in supplying energy to empower the local society. 16

41 Table 2-3 Presidential Decree on National Energy Policy Presidential Decree on National Energy Policy (PD No.5 / 2006) In 2006, the National Energy Policy (NEP) was enhanced to be a higher level of national policy by Presidential Decree. Specifically, the President of Indonesia issued the Presidential Decree of "The National Energy Policy (PD No.5/2006) on 25, January, 2006, in order to guarantee the stable energy supply to the domestic market for sustainable socio economic development. This Presidential Decree clarifies the concrete target of national energy policy such as : (a) Energy elasticity (the ratio between the rate of energy consumption increase and the rate of economic growth) should be less than 1 by the year of (Fig ) (b) Achievement of the following energy mix in 2025 (Fig ) 1) Oil 20% or less 2) Gas 30% or more 3) Coal 33% or more 4) Bio-fuel 5% or more 5) Geothermal 5% or more 6) Other new and renewable energy (especially, biomass, nuclear power, hydro power, photovoltaic, wind power etc.) 5% or more 7) Liquefied coal 2% or more Moreover, the decree states that this policy target will be achieved by the main policies and the support policies, and that the main policies are: (a) Energy supply policies to secure stable energy supply to domestic market and to optimize energy production, etc. (b) Energy utilization policy to improve energy efficiency and to diversify energy sources, (c) Energy price policy to aim at economic price (although some support to the poor people will be considered.), and (d) Environmental policy to apply sustainable development principle. As for the supporting policies, the decree indicates the following four policies (Article 3): (a) Energy infrastructure development, (b) Partnership between government and business society, (c) Empowerment to people, and (d) Research & development and educational & training. In addition, the decreed states that the government may support the development of the specified alternative energy sources and may grant the incentives to the developers of the energy sources (Article 6). The setting of clear target in the level of presidential decree provides the people concerned to geothermal energy with high expectations for further development of geothermal energy in Indonesia. 17

42 Table 2-4 Geothermal Energy Law The Geothermal Energy Law (Law No.27/2003) On October 23, 2003, the Indonesian government enacted "Geothermal Energy Law (No.27/ 2003)" which consisted of 44 Articles in 15 Chapters. This regulation provide certainty of law to the industry because the huge potentials of Indonesia s geothermal resources and its vital role to ensuring Indonesia s strategic security of energy supply, and its ability to add value as an alternative energy to the fossil fuel for domestic use. This law regulates the upstream of geothermal business. The downstream business that engages in electric power generation is to be subject to the Electric Law No. 20/2002. This law has the following Vision, Mission and Objectives: <Vision> Geothermal energy plays an important role as a renewable natural resource of choice among the variety of national energy resources to support sustainable development and to help bring about a prosperous society. <Mission> To manage geothermal energy resource development as mandated by the law: To encourage and stimulate geothermal energy activities for the sustainable fulfillment of national energy needs. To reduce dependency on oil-based fuels, thereby conserve oil reserves <Objectives> To control the utilization of geothermal energy business activities to support sustainable development and provide overall added value Increase revenue for state and the public to support national economy growth for the sake of increased public prosperity and welfare. It is thought that the enactment of this geothermal power law has the following meaning. (a) The procedure of the geothermal development is clarified, and becomes transparent in the following actions: (i) Designation of the Working Area for geothermal development, (ii) Issuance of Geothermal Energy Business Permit (IUP), and (iii) Tendering for Working Areas etc. (b) The system to spur development is built-in in the following actions: (i) Setting the period of IPU, (ii) Obligation to return IPU in case that the development does not finish within a certain period after obtaining IPU, and (iii) Obligation to report the development plan to the authority and the administrational order to change the development plan if necessary by the authority etc. (c) The role of state government and regional government is clarified in such areas: (i) Management of geothermal resources and geothermal data, (ii) Management of balance between the amount of resource and the amount of development, (iii) Preparatory investigations, (iv) Issuance of IUP, and (v) The possibility of participation in geothermal development by state-run enterprises 18

43 Fig. 2-1 Geothermal Development Road Map 19

44 Table 2-5 Outline of Eastern Provinces Region Maluku North Maluku West Nusa Tenggara East Nusa Tenggara Sub-total of Eastern regions Total Indoensia Capital Ambon Ternate Capital Mataram Kupang Jakarta Area (km2) (*1) Population ('000) (*2) 47,350 1,266 39, ,709 4,356 46,138 4, ,157 10,639 1,860, ,205 (2.5%) (0.6%) (2.1%) (0.4%) (1.1%) (2.0%) (2.5%) (1.9%) (8.2%) (4.9%) (100.0%) (100.0%) Population Growth Rate (*3) 1.66% 1.78% 1.67% 1.54% % Density (people/km2) Regional GDP (Billion Rp) (*4) 4, , , , , ,303,031.4 (0.2%) (0.1%) (1.0%) (0.6%) (1.8%) (100.0%) Percentage of population below poverty line (*5) 32.1% 12.4% 25.4% 27.9% 16.7% Regency/City (*6) Ambon, Kota Halmahera Tengah Bima Alor Buru Kota Ternate Dompu Balu Maluku Tengah Halmahera Barat Lombok Barat Ende Maluku Tenggara Halmahera Utara Lombok Tengah Flores Timur Maluku Tenggara Barat Halmahera Selatan Lombok Timur Kupang Seram Bag. Timur Kep. Sula Mataram Kupang Kota Seram Bag. Barat Halmahera Timur Sumbawa Lambata Kep. Aru Kep. Tidore. Kota Sumbawa Barat Manggrai Bima, Kota Ngada Sikka Sumba Barat Samba Timur Timor Tengh Selatan Timor Tengh Utara Manggarai Barat Rote Ndao Governor (*7) Karel Albert Ralahalu Thaib Armain Lalu Serinata Piet Alexander Tallo Ethnic Group (*7) Significantly mixed ethnicity; Melanesian, Malay, Ambonese, Bugis, Javanese, Chinese Sasak (68%), Bima (13%), Sumbawa (8%), Balinese (3%) Atoni Metto (15%), Manggarai (15%), Sumba (13%), Dawan (6%), Lamaholot (5%), Belu (5%), Rote (5%), Lio (5%) Religion (*7) Christianity, Islam Islam (96%), Hindu (3%), Buddhist (1%) (Note) *1 by Statistics Indoensia 2005/2006. *2 by 2005Indonesia population projction by Statistics Indonesia 2005/2006. *3 growth during *4 at 2004 current price by Statistics Indonesia 2005/2006. *5 at 2004 by Statistics Indonesia 2005/2006. *6 by ATLAS Indoensia & Dunia Terlengkap (2006) *7 by Wkipedia information 20 Catholic (53,9%), Protestant (33,8%), Islam (8,8%), Other (3,5%)

45 Table 2-6 Electricity Demand and Supply Situation in Eastern Provinces (2006) Item Maluku & North Maluku West Nusa Tenggara East Nusa Tenggara Sub Total of Eastern Region Outside Jawa Installed Capacity (MW) , ,846.2 <0.79%> <0.60%> <0.49%> <1.89%> <25.88%> <100.00%> Peak Load (MW) , ,354.4 <0.41%> <0.57%> <0.35%> <1.33%> <24.34%> <100.00%> Generated Energy (GWh) , , ,468.6 <0.37%> <0.55%> <0.30%> <1.22%> <23.51%> <100.00%> Energy Sold (GWh) , , ,609.8 <0.30%> <0.45%> <0.25%> <1.00%> <22.81%> <100.00%> Installed Capacity by Type (MW) (100.0%) 6,430.6 (100.0%) 25,258 (100.0%) Hydro (MW) (0.4%) 1,119.7 (17.4%) 3,529 (14.0%) Steam (MW) 0.0 (0.0%) (14.0%) 8,220 (32.5%) Gas turbine (MW) 0.0 (0.0%) (10.3%) 2,727 (10.8%) Combined Cycle (MW) 0.0 (0.0%) (13.7%) 7,021 (27.8%) Geothermal (MW) 0.0 (0.0%) 20.0 (0.3%) 807 (3.2%) Diesel (MW) (99.6%) 2,838.2 (44.1%) 2,941 (11.6%) Others (MW) 0.0 (0.0%) 12.4 (0.2%) 12 (0.0%) Energy Production by Type (GWh) ,273.3 (100.0%) 24,559.4 (100.0%) 104,468.6 (100.0%) Hydro (GWh) (0.2%) 4,076.3 (16.6%) 8,758.6 (8.4%) Steam (GWh) 0.0 (0.0%) 4,800.7 (19.5%) 47,764.3 (45.7%) Gas turbine (GWh) 0.0 (0.0%) 1,560.4 (6.4%) 5,031.2 (4.8%) Combined Cycle (GWh) 0.0 (0.0%) 5,226.9 (21.3%) 30,917.8 (29.6%) Geothermal (GWh) 0.0 (0.0%) (0.7%) 3,141.4 (3.0%) Diesel (GWh) ,270.3 (99.8%) 8,533.7 (34.7%) 8,659.9 (8.3%) Others (GWh) 0.0 (0.0%) (0.8%) (0.2%) Energy Sold by Type (GWh) ,128.9 (100.0%) 25,691.2 (100.0%) 112,609.8 (100.0%) Residential (GWh) (65.3%) 13,058.6 (50.8%) 43,753.2 (38.9%) Industrial (GWh) (2.3%) 5,046.8 (19.6%) 43,615.5 (38.7%) Business (GWh) (20.1%) 5,309.0 (20.7%) 18,415.5 (16.4%) Social (GWh) (3.9%) (2.6%) 2,603.6 (2.3%) Government (GWh) (4.5%) (2.3%) 1,807.9 (1.6%) Street Lighting (GWh) (4.1%) (3.9%) 2,414.1 (2.1%) Elecrification Rate (%) (Source: PLN Statistics 2006) PLN Total ( 出 典 :PLN Statistic2006) 21

46 Table 2-7 Diesel Power Plants in Maluku and North Maluku NO NAMA PLTD CABANG TAHUN OPERASI kw 1 HATIVE KECIL 1 AMBON ,296 2 HATIVE KECIL 2 AMBON ,296 3 HATIVE KECIL 3 AMBON ,280 4 HATIVE KECIL 4 AMBON ,560 5 HATIVE KECIL 5 AMBON ,040 6 HATIVE KECIL 6 AMBON POKA 1 AMBON ,400 8 POKA 2 AMBON ,400 9 POKA 3 AMBON , POKA 4 AMBON , POKA 5 AMBON , POKA 6 AMBON AIR BUAYA 1 AMBON AIR BUAYA 2 AMBON AIR BUAYA 3 AMBON AIR BUAYA 4 AMBON AIR BUAYA 5 AMBON AMARSEKARU 1 AMBON AMARSEKARU 2 AMBON AMARSEKARU 3 AMBON BANDA 1 AMBON BANDA 2 AMBON BANDA 3 AMBON BANDA 4 AMBON BANDA 5 AMBON BANDA 6 AMBON BULA 1 AMBON BULA 2 AMBON BULA 3 AMBON BULA 4 AMBON BULA 5 AMBON BULA 6 AMBON GESER 1 AMBON GESER 2 AMBON GESER 3 AMBON GESER 4 AMBON GESER 5 AMBON GESER 6 AMBON GESER 7 AMBON GESER 8 AMBON

47 NO NAMA PLTD CABANG TAHUN OPERASI kw 41 HARUKU 1 AMBON HARUKU 2 AMBON HARUKU 3 AMBON HARUKU 4 AMBON HARUKU 5 AMBON HARUKU 6 AMBON HARUKU 7 AMBON HARUKU 8 AMBON KESUI 1 AMBON KESUI 2 AMBON KESUI 3 AMBON KESUI 4 AMBON KAIRATU 1 AMBON KAIRATU 2 AMBON KAIRATU 3 AMBON KAIRATU 4 AMBON KAIRATU 5 AMBON KAIRATU 6 AMBON KAIRATU 7 AMBON KAIRATU 8 AMBON KAIRATU 9 AMBON KAIRATU 10 AMBON KAIRATU 11 AMBON KIANDARAT 1 AMBON KIANDARAT 2 AMBON KIANDARAT 3 AMBON KIANDARAT 4 AMBON KOBISONTA 1 AMBON KOBISONTA 2 AMBON KOBISONTA 3 AMBON KOBISONTA 4 AMBON KOBISONTA 5 AMBON KOBISONTA 6 AMBON KOBISONTA 7 AMBON KOBISONTA 8 AMBON KOBISONTA 9 AMBON KOBISONTA 10 AMBON LABUHAN 1 AMBON LABUHAN 2 AMBON LABUHAN 3 AMBON LABUHAN 4 AMBON

48 NO NAMA PLTD CABANG TAHUN OPERASI kw 82 LABUHAN 5 AMBON LABUHAN 6 AMBON LAIMU 1 AMBON LAIMU 2 AMBON LAIMU 3 AMBON LAIMU 4 AMBON LAIMU 5 AMBON LAIMU 6 AMBON LEXSULA 1 AMBON LEXSULA 2 AMBON LEXSULA 3 AMBON LEXSULA 4 AMBON LIANG 1 AMBON LIANG 2 AMBON LONTHOR 1 AMBON LONTHOR 2 AMBON LONTHOR 3 AMBON LONTHOR 4 AMBON LUHU 1 AMBON LUHU 2 AMBON LUHU 3 AMBON LUHU 4 AMBON LUHU 5 AMBON LUHU 6 AMBON LUHU 7 AMBON MANIPA 1 AMBON MANIPA 2 AMBON MANIPA 3 AMBON MANIPA 4 AMBON MAKO 1 AMBON MAKO 2 AMBON MAKO 3 AMBON MAKO 4 AMBON MAKO 5 AMBON MAKO 6 AMBON MAKO 7 AMBON MAKO 8 AMBON MAKO 9 AMBON MASAWOY 1 AMBON MASAWOY 2 AMBON MASAWOY 3 AMBON

49 NO NAMA PLTD CABANG TAHUN OPERASI kw 123 MASOHI 1 AMBON MASOHI 2 AMBON MASOHI 3 AMBON MASOHI 4 AMBON MASOHI 5 AMBON MASOHI 6 AMBON , MASOHI 7 AMBON , MASOHI 8 AMBON , MASOHI 9 AMBON MASOHI 10 AMBON MASOHI 11 AMBON MASOHI 12 AMBON WAHAI 1 AMBON WAHAI 2 AMBON WAHAI 3 AMBON WAHAI 4 AMBON WAHAI 5 AMBON NUSA LAUT 1 AMBON NUSA LAUT 2 AMBON NUSA LAUT 3 AMBON NUSA LAUT 4 AMBON NUSA LAUT 5 AMBON NUSA LAUT 6 AMBON NUSA LAUT 7 AMBON NAMLEA 1 AMBON NAMLEA 2 AMBON NAMLEA 3 AMBON NAMLEA 4 AMBON NAMLEA 5 AMBON NAMLEA 6 AMBON NAMLEA 7 AMBON NAMLEA 8 AMBON NAMLEA 9 AMBON NAMLEA 10 AMBON NAMLEA 11 AMBON NAMLEA 12 AMBON NAMLEA 13 AMBON ONDOR 1 AMBON ONDOR 2 AMBON ONDOR 3 AMBON ONDOR 4 AMBON

50 NO NAMA PLTD CABANG TAHUN OPERASI kw 164 ONDOR 5 AMBON ONDOR 6 AMBON ONDOR 7 AMBON ONDOR 8 AMBON ONDOR 9 AMBON ONDOR 10 AMBON ONDOR 11 AMBON PIRU 1 AMBON PIRU 2 AMBON PIRU 3 AMBON PIRU 4 AMBON PIRU 5 AMBON PIRU 6 AMBON PIRU 7 AMBON SAPARUA 1 AMBON SAPARUA 2 AMBON SAPARUA 3 AMBON SAPARUA 4 AMBON SAPARUA 5 AMBON SAPARUA 6 AMBON SAPARUA 7 AMBON SAPARUA 8 AMBON SAPARUA 9 AMBON SAPARUA 10 AMBON SAPARUA 11 AMBON TANIWEL 1 AMBON TANIWEL 2 AMBON TANIWEL 3 AMBON TANIWEL 4 AMBON TANIWEL 5 AMBON TANIWEL 6 AMBON TANIWEL 7 AMBON TANIWEL 8 AMBON TANIWEL 9 AMBON TANIWEL 10 AMBON TANIWEL 11 AMBON TEHORU 1 AMBON TEHORU 2 AMBON TEHORU 3 AMBON TEHORU 4 AMBON TEHORU 5 AMBON

51 NO NAMA PLTD CABANG TAHUN OPERASI kw 205 TEHORU 6 AMBON WAIPIA 1 AMBON WAIPIA 2 AMBON WAIPIA 3 AMBON WAIPIA 4 AMBON WAIPIA 5 AMBON WAIPIA 6 AMBON WAIPIA 7 AMBON WAIPIA 8 AMBON WERINAMA 1 AMBON WERINAMA 2 AMBON WERINAMA 3 AMBON WERINAMA 4 AMBON WERINAMA 5 AMBON WERINAMA 6 AMBON WERINAMA 7 AMBON WAIPANDAN 1 AMBON WAIPANDAN 2 AMBON DOBO 1 TUAL DOBO 2 TUAL DOBO 3 TUAL DOBO 4 TUAL DOBO 5 TUAL DOBO 6 TUAL DOBO 7 TUAL DOBO 8 TUAL DOBO 9 TUAL DOBO 10 TUAL DOBO 11 TUAL DOBO 12 TUAL ADAUT 1 TUAL ADAUT 2 TUAL ADAUT 3 TUAL ELAT 1 TUAL ELAT 2 TUAL ELAT 3 TUAL ELAT 4 TUAL ELAT 5 TUAL ELAT 6 TUAL ELAT 7 TUAL ELAT 8 TUAL

52 NO NAMA PLTD CABANG TAHUN OPERASI kw 246 ELAT 9 TUAL JEROL 1 TUAL JEROL 2 TUAL JEROL 3 TUAL LARAT 1 TUAL LARAT 2 TUAL LARAT 3 TUAL LARAT 4 TUAL LARAT 5 TUAL LARAT 6 TUAL LETWURUNG 1 TUAL LETWURUNG 2 TUAL LETWURUNG 3 TUAL LETWURUNG 4 TUAL SAUMLAKI 1 TUAL SAUMLAKI 2 TUAL SAUMLAKI 3 TUAL SAUMLAKI 4 TUAL SAUMLAKI 5 TUAL SAUMLAKI 6 TUAL SAUMLAKI 7 TUAL SAUMLAKI 8 TUAL SAUMLAKI 9 TUAL SAUMLAKI 10 TUAL SAUMLAKI 11 TUAL SAUMLAKI 12 TUAL SAUMLAKI 13 TUAL SAUMLAKI 14 TUAL SEIRA 1 TUAL SEIRA 2 TUAL SEIRA 3 TUAL SERWARU 1 TUAL SERWARU 2 TUAL SERWARU 3 TUAL SERWARU 4 TUAL SERWARU 5 TUAL TEPA 1 TUAL TEPA 2 TUAL TEPA 3 TUAL TEPA 4 TUAL LANGGUR 1 TUAL

53 NO NAMA PLTD CABANG TAHUN OPERASI kw 287 LANGGUR 2 TUAL LANGGUR 3 TUAL LANGGUR 4 TUAL LANGGUR 5 TUAL LANGGUR 6 TUAL LANGGUR 7 TUAL LANGGUR 8 TUAL LANGGUR 9 TUAL LANGGUR 10 TUAL LANGGUR 11 TUAL LANGGUR 12 TUAL LANGGUR 13 TUAL WONRELI 1 TUAL WONRELI 2 TUAL WONRELI 3 TUAL WONRELI 4 TUAL P.WETAR 1 TUAL KAYU MERAH 1 TERNATE KAYU MERAH 2 TERNATE KAYU MERAH 3 TERNATE KAYU MERAH 4 TERNATE KAYU MERAH 5 TERNATE KAYU MERAH 6 TERNATE KAYU MERAH 7 TERNATE KAYU MERAH 8 TERNATE KAYU MERAH 9 TERNATE BACAN 1 TERNATE BACAN 2 TERNATE BACAN 3 TERNATE BACAN 4 TERNATE BACAN 5 TERNATE BACAN 6 TERNATE BACAN 7 TERNATE BACAN 8 TERNATE BACAN 9 TERNATE BACAN 10 TERNATE BACAN 11 TERNATE BACAN 12 TERNATE BERE-BERE 1 TERNATE BERE-BERE 2 TERNATE BERE-BERE 3 TERNATE

54 NO NAMA PLTD CABANG TAHUN OPERASI kw 328 BERE-BERE 4 TERNATE BERE-BERE 5 TERNATE BOBONG 1 TERNATE BOBONG 2 TERNATE BOBONG 3 TERNATE BOBONG 4 TERNATE BOBONG 5 TERNATE BOBONG 6 TERNATE BOBONG 7 TERNATE BOBONG 8 TERNATE BICOLI 1 TERNATE BICOLI 2 TERNATE BICOLI 3 TERNATE BICOLI 4 TERNATE BICOLI 5 TERNATE BICOLI 6 TERNATE BICOLI 7 TERNATE BICOLI 8 TERNATE DARUBA 1 TERNATE DARUBA 2 TERNATE DARUBA 3 TERNATE DARUBA 4 TERNATE DARUBA 5 TERNATE DARUBA 6 TERNATE DARUBA 7 TERNATE DARUBA 8 TERNATE DARUBA 9 TERNATE DOFA 1 TERNATE DOFA 2 TERNATE DOFA 3 TERNATE DOFA 4 TERNATE DOFA 5 TERNATE DOFA 6 TERNATE DOFA 7 TERNATE IBU 1 TERNATE IBU 2 TERNATE IBU 3 TERNATE IBU 4 TERNATE IBU 5 TERNATE IBU 6 TERNATE IBU 7 TERNATE

55 NO NAMA PLTD CABANG TAHUN OPERASI kw 369 JAILOLO 1 TERNATE JAILOLO 2 TERNATE JAILOLO 3 TERNATE JAILOLO 4 TERNATE JAILOLO 5 TERNATE JAILOLO 6 TERNATE JAILOLO 7 TERNATE JAILOLO 8 TERNATE JAILOLO 9 TERNATE JAILOLO 10 TERNATE KAYOA 1 TERNATE KAYOA 2 TERNATE KAYOA 3 TERNATE KAYOA 4 TERNATE KAYOA 5 TERNATE KEDI 1 TERNATE KEDI 2 TERNATE KEDI 3 TERNATE LAIWUI 1 TERNATE LAIWUI 2 TERNATE LAIWUI 3 TERNATE LOLOBATA 1 TERNATE LOLOBATA 2 TERNATE MABA/BULI 1 TERNATE MABA/BULI 2 TERNATE MABA/BULI 3 TERNATE MADOPOLO 1 TERNATE MADOPOLO 2 TERNATE MADOPOLO 3 TERNATE MAFFA 1 TERNATE MAFFA 2 TERNATE MAFFA 3 TERNATE MAFFA 4 TERNATE MALIFUT 1 TERNATE MALIFUT 2 TERNATE MALIFUT 3 TERNATE MALIFUT 4 TERNATE MALIFUT 5 TERNATE MALIFUT 6 TERNATE MALIFUT 7 TERNATE MALIFUT 8 TERNATE

56 NO NAMA PLTD CABANG TAHUN OPERASI kw 410 MALIFUT 9 TERNATE MANGOLI 1 TERNATE MANGOLI 2 TERNATE MANGOLI 3 TERNATE MANGOLI 4 TERNATE MANGOLI 5 TERNATE MANGOLI 6 TERNATE MANGOLI 7 TERNATE PATANI 1 TERNATE PATANI 2 TERNATE PATANI 3 TERNATE PATANI 4 TERNATE PAYAHE 1 TERNATE PAYAHE 2 TERNATE PAYAHE 3 TERNATE PAYAHE 4 TERNATE PAYAHE 5 TERNATE SAKETA 1 TERNATE SAKETA 2 TERNATE SAKETA 3 TERNATE SAKETA 4 TERNATE SAKETA 5 TERNATE SAKETA 6 TERNATE SAKETA 7 TERNATE SAKETA 8 TERNATE SANANA 1 TERNATE SANANA 2 TERNATE SANANA 3 TERNATE SANANA 4 TERNATE SANANA 5 TERNATE SANANA 6 TERNATE SANANA 7 TERNATE SOA-SIU 1 TERNATE SOA-SIU 2 TERNATE SOA-SIU 3 TERNATE SOA-SIU 4 TERNATE SOA-SIU 5 TERNATE SOA-SIU 6 TERNATE SOA-SIU 7 TERNATE SOA-SIU 8 TERNATE SOA-SIU 9 TERNATE

57 NO NAMA PLTD CABANG TAHUN OPERASI kw 451 SOA-SIU 10 TERNATE SOFIFI 1 TERNATE SOFIFI 2 TERNATE SOFIFI 3 TERNATE SOFIFI 4 TERNATE SOFIFI 5 TERNATE SOFIFI 6 TERNATE SOFIFI 7 TERNATE SOFIFI 8 TERNATE WEDA 1 TERNATE WEDA 2 TERNATE WEDA 3 TERNATE SUBAIM 1 TERNATE SUBAIM 2 TERNATE SUBAIM 3 TERNATE SUBAIM 4 TERNATE SUBAIM 5 TERNATE SUBAIM 6 TERNATE SUBAIM 7 TERNATE TOBELO 1 TERNATE

58 Table 2-8 Diesel Power Plants in Nusa Tenggara NO NAMA PLTD CABANG TAHUN OPERASI kw 1 LABUHAN 1 SUMBAWA LABUHAN 2 SUMBAWA LABUHAN 3 SUMBAWA LABUHAN 4 SUMBAWA LABUHAN 5 SUMBAWA LABUHAN 6 SUMBAWA LABUHAN 7 SUMBAWA LABUHAN 8 SUMBAWA LABUHAN 9 SUMBAWA LANTUNG 1 SUMBAWA LANTUNG 2 SUMBAWA LANTUNG 3 SUMBAWA LUNYUK BESAR 1 SUMBAWA LUNYUK BESAR 2 SUMBAWA LUNYUK BESAR 3 SUMBAWA LUNYUK BESAR 4 SUMBAWA LUNYUK BESAR 5 SUMBAWA LUNYUK BESAR 6 SUMBAWA LEBIN 1 SUMBAWA LEBIN 2 SUMBAWA LEBIN 3 SUMBAWA SEBOTOK 1 SUMBAWA SEBOTOK 2 SUMBAWA LABUHAN HAJI 1 SUMBAWA LABUHAN HAJI 2 SUMBAWA KLAWIS 1 SUMBAWA KLAWIS 2 SUMBAWA BUGIS MEDANG 1 SUMBAWA BUGIS MEDANG 2 SUMBAWA BUGIS MEDANG 3 SUMBAWA BUGIS MEDANG 4 SUMBAWA EMPANG 1 SUMBAWA EMPANG 2 SUMBAWA EMPANG 3 SUMBAWA EMPANG 4 SUMBAWA EMPANG 5 SUMBAWA EMPANG 6 SUMBAWA EMPANG 7 SUMBAWA EMPANG 8 SUMBAWA EMPANG 9 SUMBAWA

59 NO NAMA PLTD CABANG TAHUN OPERASI kw 41 EMPANG 10 SUMBAWA ALAS 1 SUMBAWA ALAS 2 SUMBAWA ALAS 3 SUMBAWA ALAS 4 SUMBAWA ALAS 5 SUMBAWA ALAS 6 SUMBAWA ALAS 7 SUMBAWA SEKOKANG 1 SUMBAWA SEKOKANG 2 SUMBAWA SEKOKANG 3 SUMBAWA SEKOKANG 4 SUMBAWA SEKOKANG 5 SUMBAWA SEKOKANG 6 SUMBAWA SEKOKANG 7 SUMBAWA TALIWANG 1 SUMBAWA TALIWANG 2 SUMBAWA TALIWANG 3 SUMBAWA TALIWANG 4 SUMBAWA TALIWANG 5 SUMBAWA TALIWANG 6 SUMBAWA TALIWANG 7 SUMBAWA TALIWANG 8 SUMBAWA TALIWANG 9 SUMBAWA TALIWANG 10 SUMBAWA BIMA 1 BIMA BIMA 2 BIMA BIMA 3 BIMA BIMA 4 BIMA BIMA 5 BIMA BIMA 6 BIMA BIMA 7 BIMA BIMA 8 BIMA BIMA 9 BIMA BIMA 10 BIMA BIMA 11 BIMA BIMA 12 BIMA NIU 1 BIMA NIU 2 BIMA SAPE 1 BIMA SAPE 2 BIMA

60 NO NAMA PLTD CABANG TAHUN OPERASI kw 82 SAPE 3 BIMA SAPE 4 BIMA SAPE 5 BIMA TAWALI 1 BIMA TAWALI 2 BIMA TAWALI 3 BIMA TAWALI 4 BIMA TAWALI 5 BIMA KOLO 1 BIMA KOLO 2 BIMA KOLO 3 BIMA KOLO 4 BIMA NIPA 1 BIMA NIPA 2 BIMA NIPA 3 BIMA PAI 1 BIMA PAI 2 BIMA DOMPU 1 BIMA DOMPU 2 BIMA DOMPU 3 BIMA DOMPU 4 BIMA DOMPU 5 BIMA DOMPU 6 BIMA DOMPU 7 BIMA DOMPU 8 BIMA DOMPU 9 BIMA DOMPU 10 BIMA KEMPO 1 BIMA KEMPO 2 BIMA KEMPO 3 BIMA MELAYU 1 BIMA KORE 1 BIMA KORE 2 BIMA KORE 3 BIMA KORE 4 BIMA SAI 1 BIMA SAI 2 BIMA SAI 3 BIMA KWANGKO 1 BIMA KWANGKO 2 BIMA KWANGKO 3 BIMA

61 NO NAMA PLTD CABANG TAHUN OPERASI kw 123 PEKAT 1 BIMA PEKAT 2 BIMA PEKAT 3 BIMA PEKAT 4 BIMA PEKAT 5 BIMA PEKAT 6 BIMA PEKAT 7 BIMA BAJOPULO 1 BIMA BAJOPULO 2 BIMA BAJOPULO 3 BIMA BONTO 1 BIMA NGGELU 1 BIMA NGGELU 2 BIMA SAMPUNGU 1 BIMA SAMPUNGU 2 BIMA KUTA MONTA 1 BIMA KUTA MONTA 2 BIMA KUTA MONTA 3 BIMA KUTA MONTA 4 BIMA KUTA MONTA 5 BIMA MONT SAPAH 1 MATARAM MONT SAPAH 2 MATARAM GILITRAWANGAN 1 MATARAM GILITRAWANGAN 2 MATARAM GILITRAWANGAN 3 MATARAM MARINGKIK 1 MATARAM MARINGKIK 2 MATARAM GILI INDAH 1 MATARAM GILI INDAH 2 MATARAM GILI INDAH 3 MATARAM GILI INDAH 4 MATARAM GILI MENO 1 MATARAM GILI MENO 2 MATARAM TAMAN 1 MATARAM TAMAN 2 MATARAM TAMAN 3 MATARAM TAMAN 4 MATARAM TAMAN 5 MATARAM AMPENAN 1 MATARAM AMPENAN 2 MATARAM AMPENAN 3 MATARAM

62 NO NAMA PLTD CABANG TAHUN OPERASI kw 164 AMPENAN 4 MATARAM AMPENAN 5 MATARAM AMPENAN 6 MATARAM AMPENAN 7 MATARAM AMPENAN 8 MATARAM PAOKMOTONG 1 MATARAM PAOKMOTONG 2 MATARAM PAOKMOTONG 3 MATARAM PAOKMOTONG 4 MATARAM PAOKMOTONG 5 MATARAM

63 Table 2-9 Diesel Power Plants in Flores Island NO NAME OF DIESEL START CAPACITY BRANCH POWER PLANT OPERATION (KW) 1 MAUTAPAGA 1 ENDE MAUTAPAGA 2 ENDE MAUTAPAGA 3 ENDE MAUTAPAGA 4 ENDE MAUTAPAGA 5 ENDE MAUTAPAGA 6 ENDE MAUTAPAGA 7 ENDE MAUTAPAGA 8 ENDE NDORIWOY 1 ENDE NDORIWOY 2 ENDE WOLOWARU 1 ENDE WOLOWARU 2 ENDE WOLOWARU 3 ENDE MAUROLE 1 ENDE MAUROLE 2 ENDE MAUROLE 3 ENDE NDETUNDORA 1 ENDE KOTA BUA 1 ENDE KOTA BUA 2 ENDE KOTA BUA 3 ENDE WELAMOSA 1 ENDE WELAMOSA 2 ENDE WELAMOSA 3 ENDE WELAMOSA 4 ENDE WELAMOSA 5 ENDE RAPORENDU 1 ENDE RAPORENDU 2 ENDE KABIRANGGA 1 ENDE KABIRANGGA 2 ENDE KABIRANGGA 3 ENDE WONDA 1 ENDE WONDA 2 ENDE WOLOWARANG 1 ENDE WOLOWARANG 2 ENDE WOLOWARANG 3 ENDE WOLOWARANG 4 ENDE WOLOWARANG 5 ENDE WOLOWARANG 6 ENDE WOLOWARANG 7 ENDE WOLOWARANG 8 ENDE

64 NO NAME OF DIESEL START CAPACITY BRANCH POWER PLANT OPERATION (KW) 41 WOLOWARANG 9 ENDE BOLA 1 ENDE PEMANA 1 ENDE PEMANA 2 ENDE PEMANA 3 ENDE PEMANA 4 ENDE PEMANA 5 ENDE PEMANA 6 ENDE RUBIT 1 ENDE RUBIT 2 ENDE TALIBURA 1 ENDE WAEGATE 1 ENDE WAEGATE 2 ENDE WAEGATE 3 ENDE WAEGATE 4 ENDE NEBE 1 ENDE NEBE 2 ENDE MAGEPANDA 1 ENDE MAGEPANDA 2 ENDE MAGEPANDA 3 ENDE LARANTUKA 1 ENDE LARANTUKA 2 ENDE LARANTUKA 3 ENDE LARANTUKA 4 ENDE LARANTUKA 5 ENDE LARANTUKA 6 ENDE LARANTUKA 7 ENDE LEBATUKAN 1 ENDE LEBATUKAN 2 ENDE LEBATUKAN 3 ENDE LEBATUKAN 4 ENDE ADONARA TIMUR 1 ENDE ADONARA TIMUR 2 ENDE ADONARA TIMUR 3 ENDE ADONARA TIMUR 4 ENDE HADAKEWA 1 ENDE ADONARA BARAT 1 ENDE ADONARA BARAT 2 ENDE ADONARA BARAT 3 ENDE BORU 1 ENDE BORU 2 ENDE

65 NO NAME OF DIESEL START CAPACITY BRANCH POWER PLANT OPERATION (KW) 82 ILEAPE 1 ENDE SOLOR TIMUR 1 ENDE SOLOR TIMUR 2 ENDE SOLOR TIMUR 3 ENDE SOLOR TIMUR 4 ENDE SOLOR TIMUR 5 ENDE WITIHAMA 1 ENDE WITIHAMA 2 ENDE WITIHAMA 3 ENDE NAGAWUTUN 1 ENDE NAGAWUTUN 2 ENDE SOLOR BARAT 1 ENDE SOLOR BARAT 2 ENDE OMESURI 1 ENDE OMESURI 2 ENDE OMESURI 3 ENDE OMESURI 4 ENDE ILEBOLANG 1 ENDE ILEBOLANG 2 ENDE LEWOLAGA 1 ENDE TANJUNG BUNGA 1 ENDE TANJUNG BUNGA 2 ENDE TANJUNG BUNGA 3 ENDE BAJAWA 1 ENDE BAJAWA 2 ENDE BAJAWA 3 ENDE BAJAWA 4 ENDE BAJAWA 5 ENDE BAJAWA 6 ENDE BAJAWA 7 ENDE BAJAWA 8 ENDE BAJAWA 9 ENDE BAJAWA 10 ENDE BAJAWA 11 ENDE BAJAWA 12 ENDE BAJAWA 13 ENDE BOAWAE 1 ENDE BOAWAE 2 ENDE BOAWAE 3 ENDE BOAWAE 4 ENDE SAWU 1 ENDE

66 NO NAME OF DIESEL START CAPACITY BRANCH POWER PLANT OPERATION (KW) 123 SAWU 2 ENDE SAWU 3 ENDE AIMERE 1 ENDE AIMERE 2 ENDE AIMERE 3 ENDE AIMERE 4 ENDE DANGA 1 ENDE DANGA 2 ENDE DANGA 3 ENDE NANGARORO 1 ENDE NANGARORO 2 ENDE NANGARORO 3 ENDE RIUNG 1 ENDE RIUNG 2 ENDE RIUNG 3 ENDE RUTENG 1 ENDE RUTENG 2 ENDE RUTENG 3 ENDE RUTENG 4 ENDE RUTENG 5 ENDE RUTENG 6 ENDE RUTENG 7 ENDE RUTENG 8 ENDE WAIGARIT 1 ENDE REO 1 ENDE REO 2 ENDE REO 3 ENDE REO 4 ENDE LABUHAN BAJO 1 ENDE LABUHAN BAJO 2 ENDE LABUHAN BAJO 3 ENDE LEMBOR 1 ENDE LEMBOR 2 ENDE LEMBOR 3 ENDE LEMBOR 4 ENDE LEMBOR 5 ENDE MBORONG 1 ENDE MBORONG 2 ENDE MBORONG 3 ENDE MBORONG 4 ENDE LEMBUR 1 ENDE

67 NO NAME OF DIESEL START CAPACITY BRANCH POWER PLANT OPERATION (KW) 164 BENTENG JAWA 1 ENDE BENTENG JAWA 2 ENDE GOLOWELU 1 ENDE POTA 1 ENDE POTA 2 ENDE POTA 3 ENDE PAGAL 1 ENDE PAGAL 2 ENDE PAGAL 3 ENDE PAGAL 4 ENDE

68 Installed Capacity (2006) Energy Sold (2006) 1.9% 24.0% 1.0% 21.8% 74.1% 77.2% Eastern Region Other Outside Jawa Jawa- Bali Eastern Region Other Outside Jawa Jawa- Bali (Source:PLN Statistics 2006) Fig. 2-2 Electricity Demand and Supply Situation in Eastern Provinces (2006) Total of Eastern Region East Nusa Tenggara West Nusa Tenggara Maluku & North Maluku Energy Sold (GWh) Residential Industrial Business Social Government Street Lighting (Source:PLN Statistics 2006) Fig. 2-3 Electricity Sales in Eastern Provinces (2006) 44

69 70 60 Elecrification Ratio (%) Maluku & North Maluku West Nusa Tenggara East Nusa Tenggara Outside Jawa PLN Total (Source:PLN Statistics 2006) Fig. 2-4 Electrification Ratio in Eastern Provinces (2006) 45

70 Table 2-10 Electricity Demand Outlook in Eastern Provinces Maluku & N. Muluku System Item Unit 2006(Act.) Energy Demand GWh Growth - 0.4% 2.5% 3.7% 4.5% Annual Road Factor % 54% 55% 55% 55% Energy Generation GWh Peak Power Demand MW Growth - 0.1% 2.1% 3.4% 4.3% Required Generation Capacity MW NTB System Item Unit 2006(Act.) Energy Demand GWh ,215 1,639 2,300 Growth - 9.3% 9.1% 8.7% 8.3% Energy Generation GWh ,361 1,901 2,783 Peak Power Demand MW Growth % 11.1% 9.7% 8.7% Required Generation Capacity MW NTT System Item Unit 2006(Act.) Energy Demand GWh ,316 Growth - 9.8% 9.1% 8.3% 8.4% Energy Generation GWh ,592 Peak Power Demand MW Growth % 9.4% 8.1% 8.1% Required Generation Capacity MW Eastern Region Total Item Unit 2006(Act.) Energy Demand GWh 1,135 1,717 2,334 3,069 4,412 Growth - 7.1% 7.5% 7.4% 7.4% Energy Generation GWh 1,273 1,908 2,608 3,530 5,256 Peak Power Demand MW ,065 Growth - 9.0% 8.5% 7.8% 7.5% Required Generation Capacity MW ,103 1,491 (Note : The projections during are based on RUKN 2005) 46

71 Peak Demand and Energy Demand Outlook (Eastern Region Total) 6,000 1,200 5,000 1,000 Energy Demand (GWh) 4,000 3,000 2, Peak Demand (MW) 1, Energy Demand Peak Demand (MW) Outlook Peak Power Demand ,200 1,000 Peak Demand (MW) Maluku & North Maluku West Nusa Tenggera East Nusa Tenggera (Source:MEMR RUKN2005) Fig. 2-5 Electricity Demand Outlook in Eastern Provinces

72 Installed Capacity of PLN Total (2006) 9,000 8,000 8,220 7,000 7,021 Installed Capacity (MW) 6,000 5,000 4,000 3,000 3,529 2,727 2,941 2,000 1, Hydro Steam Gas turbine Combined Cycle Geothermal (Source:PLN Statistics 2006) Fig. 2-6 Installed Capacity of PLN (2006) Diesel Others 12 48

73 Installed Capacity Mix of PLN (2006) 12% 0% 14% 28% 3% 32% Hydro Steam Gas turbine Combined Cycle Geothermal Diesel Others 11% Installed Capacity Mix of Eastern Region (2006) Hydro Steam Gas turbine Combined Cycle Geothermal Diesel Others 100% (Source:PLN Statistics 2006) Fig. 2-7 Comparison of Power Plant Mix between Whole Nation and Eastern Provinces (2006) 49

74 Increase of Diesel Generaiton Cost and Diesel Fuel Price Diesel Fuel Price (US$/litter) Diesel Generation Cost (centus$/kwh) HSD Price (LHS) Diesel Gen Cost (RHS) (Source:PLN Statistics 2006) Fig. 2-8 Increase of Diesel Generation Cost and Diesel Fuel Price Generation Cost of PLN (2006) /kwh /kwh CentsUS$/kWh /kwh 4.3 /kwh 6.3 /kwh 9.7 /kwh 0.0 Hydro Steam Diesel Gas Turbine Geothermal Combined Cycle Fuel Maintemnance Depreciation Other Expenses Personnel (Source: PLN Statistics 2006) Fig. 2-9 Generation Cost by Energy Type (2006) 50

75 WTI Spot Price (FOB) US Dollar per Barrel (Source:USDOE Fig International Oil Price 51

76 Table 2-11 Estimation of Geothermal Development Effect in Eastern Provinces Item Maluku & West Nusa East Nusa Eastern North Maluku Tenggara Tenggara Region Total Remarks Installed Capacity (MW) (a) as of 2006 Peak Load (MW) (b) ditto - Energy Production by Diesel (GWh) (c) , ditto - Fuel Consumption by Diesel (kl) (d) 105, ,546 88, ,034 - ditto - Specific Fuel Consumption by Diesel (l/kwh) (e) ditto - Cost of Diesel Fuel (m$) (f) (d) $/l Alternative Geothermal Capacity (MW) (g) '= Minimum Demand ((b) x 33%) Alternative Geothermal Generation (GWh) (i) (g) x 8,760h Alternative Geothermal Generation Share (%) (j) 62.7% 57.9% 66.9% 61.5% (i)/(c) Fuel to be saved by Geothermal (kl) (k) 66,361 88,324 59, ,527 (d) x (j) Value of Fuel to be Saved (m$) (l) (k) $/l (Source: PLN Statistics 2006) 52

77 Demand Curve in Flores Island and Best Mix of Energy Sources (Maximum Demand Day in August 2005) Maximum Demand 17.8MW at 19: Load (MW) Base Load Supplier Geothermal 0:00 1:00 2:00 3:00 4:00 Peak Load Supplier Deisel Minimum Demand 5.8MW at 8:30 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 Fig Concept of Best Energy Mix in Eastern Provinces 20:00 21:00 22:00 23:00 53

78

79 Chapter 3 Geothermal Resources in Eastern Indonesia 3.1 Overview of Geothermal Resources in Eastern Indonesia Indonesia is made up of more than 17,000 islands. Located in the western side of Circum Pacific Volcanic Belt, this country is blessed with abundant geothermal resources (S. Suryantoro et al., 2005). The 253 geothermal areas have been identified in Indonesia. The total potential is estimated as approximately 27,791 MW (DGMCG, 2005). The 170 areas of Indonesia have high temperature geothermal resources, and 21 areas of high temperature geothermal systems with electricity-generating capabilities exist and are being developed. These 21 areas are: Sibayak, Salak, Wayang Windu, Kamojang, Darajat, Lahendong, and Dieng, where resources are used for electricity generation of 857 MWe operated by PT. PERTAMINA. Sallura, Sungai Penuh, Hulu Lais Tambang Sawah, Lumut Balai, Ulubelu, Kawah Cibuni, Patuha, Karaha, Iyang Argopuro, Bedugul, and Kotamobagu, whose resources have not been used for electricity so far, and currently are under developing by PT. PERTAMINA own or with its contractors for electricity generation. Tulehu, Mataloko, and Ulumbu, which are outside of PERTAMINA s activities, are operated by PT. PLN. All the high temperature systems are found within the Sumatra, Java, Sulawesi, and Eastern Island Volcanic Zone, which lies over an active subduction zone in western side of Circum Pacific Volcanic Belt. In the eastern Indonesia (Nusa Tenggara and Maluku provinces), 37 geothermal fields were identified by DGMCG (2005), which total potential was estimated as 1,914 MW (Figs. 3-1 to 3-4, Table 3-1). JICA (2007) conducted the Master Plan Study for geothermal resource development in Indonesia. The objective fields of the JICA study were selected as seventy three (73) promising geothermal fields which include eleven (11) geothermal fields in the eastern provinces: Huu Daha, Wai Sano, Ulumbu, Bena-Mataloko, Sokoria-Mutubusa, Oka-Larantuka, Ili Labaleken, Atadei, Tonga Wayana, Tulehu and Jailolo. However, because of the lack of sufficient geoscientific data, only 9 fields among the 11 fields in the eastern Indonesia were evaluated in terms of resource characteristics and capacity in the JICA study (Fig. 3-5 and Table 3-1). 3.2 Present Exploration Status in Eastern Indonesia Only two fields in the eastern provinces (Nusa Tenggara and Maluku provinces), Ulumbu and Mataloko have been studied by well-drilling to confirm reservoir conditions. Promising geothermal resources were confirmed by well discharges from high temperature reservoir. The other fields have been investigated at various levels commensurate with the development prospect of each field. 54

80 As mentioned above, detailed surface exploration study and well drillings have been done in Ulumbu and Mataloko, and the existence of geothermal reservoir was confirmed. In 9 fields, Huu Daha, Wai Sano, Ulumbu, Bena-Mataloko, Sokoria-Mutubusa, Oka-Larantuka, Atadei, Tulehu and Jailolo, some geoscientific data of reconnaissance studies are published in websites of VSI and JICA (2007) and published papers. Except of 9 fields as listed above, exploration statuses were not clarified because available geoscientific data in these fields could not be obtained in this study. However, it is supposed that these geothermal fields are at the initial stages of exploration in geothermal development. In these fields, geoscientific studies or existing data collection for clarification of characteristics and structure of the geothermal resources should be conducted. The current practical plans for geothermal development/expansion projects were confirmed through interviews during a mission trip to Indonesia. In the two fields (Ulumbu and Mataloko), small-scale power developments have been planned by PT. PLN. In addition, PT. PLN has actual plan of resource development in Hu u Daha, Jailolo, Tolehu and Sembaiun (Table 3-2). As shown in Table 3-2, JICA (2007) assessed geothermal resource characteristics in each of 73 promising fields (70 fields originally planned by JICA plus 3 fields proposed by CGR). However, because of the lack of sufficient geoscientific data, only 50 fields among the 73 fields could be evaluated in terms of resource characteristics and capacity. For geothermal resource evaluation relating to development priority, JICA (2007) assessed the likelihood of the presence of a geothermal reservoir accompanied by high enthalpy fluids. The evaluated fields were classified into 4 ranks listed below according to the likelihood of reservoir presence. 1 :The reservoir is ascertained by well drilling(s) (including already developed fields). 2 :The existence of a reservoir is inferred mainly from appropriate geothermometry using chemical data concerning hot springs and fumarolic gases; The presence of a reservoir is extremely likely. 3 :The existence of a reservoir is inferred from a variety of geoscientific information, including geological and geophysical survey data and the occurrence of high temperature manifestations. Low :The presence of a reservoir is unlikely; or if there is one, only a low temperature reservoir may exist. (However, the possibility of a power plant project utilizing low enthalpy fluids remains.) In addition to the 4 ranks given above, geothermal fields where sufficient geoscientific data is not available were classified as NE. 55

81 As a results of JICA study, Ulumbu and Mataloko are classified as Rank A, Hu u Daha, Wai Sano, Sukoria, Oka-lle Ange, Atadei, Jailolo and Tolehu as Rank C and Tonga Wayaua and Ili Labaleken as NE (Table 3-2). 3.3 Necessary Study for Future Geothermal Resource Development As described above, many geothermal fields exist in the eastern provinces. However, except for Ulumbu and Mataloko, the present status of geothermal resources development is still reconnaissance study level. These data allow estimating probable prospect area and probable heat source, and also allow establishing the sequence and geoscientific methods to use in the next stages of development. However, the data and information of geology, geochemistry and geophysics in the fields are not enough to make geothermal reservoir model and to evaluate generation power capacity of their fields. Therefore, geoscientific studies for clarification of characteristics and structure of the geothermal resources should be conducted as resource feasibility study in the fields in the eastern provinces except for Ulumbu and Mataloko. After the geoscientific surface study, exploratory well drilling and well test should be conducted to confirm geothermal resource existence and to evaluate its capacity. A description of the surface thermal activity, estimated resource potential (MW) and the exploration status of the above mentioned 9 geothermal fields in the eastern provinces are given in Chapter

82 Fig. 3-1 Map of Geothermal Area in West Nusa Tenggara (DGMCG, 2005) Fig. 3-2 Map of Geothermal Area in West East Nusa Tenggara (DGMCG, 2005) 57

83 Fig. 3-3 Map of Geothermal Area in North Maluku (DGMCG, 2005) Fig. 3-4 Map of Geothermal Area in Maluku (DGMCG, 2005) 58

84 Iboi-Jaboi 20MW Seulawah Agam 600MW : Presence of concrete plan for development or expansion : Possible additional or new power capacity for development Lumut Balai (green) : PERTAMINA Working Area Muaralabuh (white) : Open Field Lau Debuk-Debuk / Sibayak 160MW Sipaholon Tarutung 50MW Sarula Sibual Buali 660MW S. Merapi Sampuraga 500MW G. Talang 30MW Muaralabuh 240MW Sungai Penuh 355MW Lempur / Kerinci 60MW Suwawa Gorontalo 130MW Kotamobagu 220MW Lahendong - Tompaso 380MW Merana 200MW Jailolo 40MW SUMATRA 5,955 MW B. Gedung Hulu Lais / Tambang Sawah 910MW SULAWESI 930 MW Tulehu 40MW Suoh Antatai G. Sekincau 900MW Lumut Balai 620MW Marga Bayur 170MW Rajabasa 120MW Tangkubanperahu 20MW MALUKU 80 MW Ulubelu 440MW Wai Ratai 120MW Ijen 120MW Bedugul 330MW NUSA TENGGARA 570 MW Citaman G. Karang 20MW Cosolok Cisukarame 180MW G. Salak 500MW G. Patuha 500MW G. Wayang - Windu 400MW JAVA-BALI Darajat 330MW 3,870 MW Kamojang 320MW Wilis / Ngebel 120MW Ungaran 180MW Telomoyo 50MW Dieng 400MW G. Karaha G. Telagabodas 400MW Hu u Daha 110MW Atadei 50MW Oka Larantuka 90MW Sokoria Mutubusa 90MW Wai Sano 50MW Bena Mataloko 30MW Ulumbu 150MW Objective Area Fig. 3-5 Map Showing the Resource Potential in Promising Geothermal Fields (JICA, 2007) 59

85 No Area West Nusa Tenggara Regency/City DGMCG (2005) Spec. Hypo. Possible Probable Proven Installed (MW) JICA Master Plan Study (2007) Exploitable Resource Potential (MW) 161 Sembaiun East Lombok Marongge Sumbawa Besar Huu-Daha Dompu East Nusa Tenggara Sub Total (MW) Wai Sano Manggarai Ulumbu Manggarai Wal Pesi Manggarai Gou-Inelika Ngada Mengeruda Ngada Mataloko Ngada Komandaru Ende Ndetusoko Ende Sukoria Ende Jopu Ende Lesugolo Ende Oka-Ile Ange East Flores Atadei Lembata Bukapiting Alor Roma-Ujeiewung Lembata Oyang Barang East Flores Sirung (Isiabang-Kuriaii) Alor Adum Lembata Alor Timur Alor Ili Labaleken NE North Maluku Sub Total (MW) Mamuya North Halmahera Ibu West Halmahera Akelamo North Halmahera Jailolo West Halmahera Keibesi West Halmahera Akesahu Tidore Indari South Halmahera Labuha South Halmahera Tonga Wayaua South Halmahera NE Maluku Table 3-1 Geothermal Resource Potential (MW) in Eastern Indonesia Resources (MW) Reserve (MW) Sub Total (MW) Larike Ambon Taweri Ambon Tolehu Ambon Oma Haruku Central Maluku Saparua Central Maluku Nusa Laut Central Maluku Sub Total (MW) Total (MW) Not studied in JICA (2007) 60

86 Table 3-2 Present Status of geothermal resource development in Eastern Indonesia No. *1 Area West Nusa Tenggara 161 Sembaiun East Lombok 162 Marongge Sumbawa Besar 163 Huu-Daha Dompu C East Nusa Tenggara 164 Wai Sano Manggarai C 165 Ulumbu Manggarai A 166 Wal Pesi Manggarai 167 Gou-Inelika Ngada 168 Mengeruda Ngada 169 Mataloko Ngada A 170 Komandaru Ende 171 Ndetusoko Ende 172 Sukoria Ende C 173 Jopu Ende 174 Lesugolo Ende 175 Oka-Ile Ange East Flores C 176 Atadei Lembata C 177 Bukapiting Alor 178 Roma-Ujeiewung Lembata 179 Oyang Barang East Flores 180 Sirung (Isiabang-Kuriaii) Alor 181 Adum Lembata 182 Alor Timur Alor North Maluku 237 Mamuya North Halmahera 238 Ibu West Halmahera 239 Akelamo North Halmahera 240 Jailolo West Halmahera C 241 Keibesi West Halmahera 242 Akesahu Tidore 243 Indari South Halmahera 244 Labuha South Halmahera 245 Tonga Wayaua South Halmahera N Maluku 246 Larike Ambon 247 Taweri Ambon 248 Tolehu Ambon C 249 Oma Haruku Central Maluku 250 Saparua Central Maluku 251 Nusa Laut Central Maluku - Ili Labaleken *3 Lembata N *1: Area Number defined by DGMCG (2005) Regency/City Confirmation of geothermal reservoir by well drilling Exist Development Plan by PLN *2: Development Priolity defined by JICA (2007) A Existing Power Plant or Existing Epansion/Development Plan B High Possibiity of Existing Geothermal Reservoir C Medium Possibility of Existing Geothermal Reservoir L Low Possibility of Existing Geothermal Reservoir N Not Enough Data for Evaluation *3: Ili Labaleken is located in Lembata, but the field number defined by DGMCG (2005) is unclear. Development Priolity defined by JICA (2007) *2 61

87 3.4 Geothermal Resources in Each Fields Following are the review of geothermal resources in each field based on the data of VSI, JICA (2007) and published papers HU U DAHA The Hu u Daha geothermal area is located in the southeastern part of the middle Sumbawa Island. Most thermal features occur in an area surrounding the NW-SE trending fault (Fig. 3-6). The surface features presumably indicate the potency of geothermal resources beneath the area. These features include hot springs, fumaroles and altered rocks. The distribution of the surface features occurs at elevations between 90 to 500 m above sea level, and the temperatures are between 37 and 80 C. Geological, geochemical and geophysical surveys recognized a geothermal prospect area located in the up-flow system of the Hu u geothermal area. The prospects covers an area of about 10 km 2 recognized by mercury and CO 2 richdistribution (H. Sundhoro, et al. 2008). Surface geoscientific surveys (geological, geochemical and geophysical surveys) have been carried out by CGR. The resource potential is estimated as 110 MW by JICA (2007). The geoscientific description in Hu u Daha is published by the Volcanological Survey in Indonesia (VSI) and published papers. Based on the description, geoscientific data in Hu u Daha is reviewed as follows. Geology: The geology of the Hu u Daha area is dominated by Miocene, predominantly andesitic, volcanic and volcanoclastic rocks. Dacites and some andesitic intrusives occur to the north of the thermal area but there is no clear heat source for the system. The active volcano of Sangeang Api is 90 km to the north of Huu with an older chain of Quaternary volcanoes along the north coast of Sumbawa about 45 km distant (R. D. Johnstone, 2005). Surface geothermal manifestations and Geochemistry: The Hu u Daha has a number of thermal features. They surround Doro Toki - Doro Pure volcanic complex and consist of warm and hot springs and fumaroles, and some hot or old altered ground. Fumaroles exist at two locations: at approximately 500 m.a.s.l. in the Sungai Neangga river valley on the southwestern slopes of Doro Pure, and at Limea at 100 m.a.s.l. on the southern slopes of the same mountain. The valley floor is strongly altered and there are a number of sulphur deposits. The hottest springs also occur at Limea, close to the shoreline. Temperatures range between 81 o C and 86 o C, flows are low (<0.3 l/sec) and the waters have properties expected in sulphate- chloride outflows. There may be some interference from sea water but the analytical quality is not good enough for any definite ideas to be formed. All the other hot springs are at 40 o C or less and are grouped in three locations. The hottest occur on 62

88 the western slopes of Doro Pure in the Sungai Huu river valley and on the northwestern slopes of Doro Toki. The Huu hot springs occur at 100 m.a.s.l. and are neutral bicarbonate waters. Flows are similar to those at Limea. Some iron oxide deposits and carbonate sinters exist surround the springs. The springs at Daha are also low flow, neutral bicarbonate waters with temperatures approximating 40 o C. They all occur at approximately 300 m.a.s.l. and have similar chemistries, allowing for the standard of analysis. The third set of springs occurs at Parado where temperatures approximate 30 o C, flows are around 1.5 kg/sec and the waters are of bicarbonate type. Chloride content levels are lower than those at Daha or Huu and the ph is more alkaline (7.5 to 8) (based on description of VSI). Geophysics: A Schlumberger resistivity survey was carried out during 1984 on part of the southern area of Sumbawa, near the eastern end of the slopes of Doro Pilar (1030 m.a.s.l.) and Doro Puree. The survey comprised 7 parallel lines, averaging 8 km in length, and approximately following constant elevation. The warm springs of Huu and Daha lay within the survey area, and the thermal ground on D.Pure was situated at the southwest end of the lines. No resistivity measurements were made on the south side of the volcanoes, which contain the main thermal manifestation in the prospect (Limea hot springs near the coast). This area can be only accessible by boat. The resistivity measurements comprised overlapping soundings, generally to AB/2=2000m. The results were presented in Andan (1984). An apparent resistivity map at AB/2=1000m was also drawn up for the assessment discussed here. The general pattern on the resistivity maps is decreasing resistivity towards the southwest end of the survey area. However on the lines at lowest elevation, the apparent resistivity increases strongly with increasing AB/2 value (after passing through a relatively shallow zone of low resistivity). At higher elevations (in the southwest), the low resistivity is generally deeper, and on some curves, there is only a marginal increase in resistivity at the largest current spacings (e.g. E 6500). In view of the low resistivity at depth in the young volcanic host rock (<5 ohm-m), the elevated location of the southwest end of line E, and its proximity to the thermal ground on D.Pure, the most interesting part of the prospect probably lies beneath the ridge of D.Pure, or on the south side of D.Pure. The survey lines closest to D.Pilar indicate significantly higher resistivities (typically ~30 ohm-m) at depth, and therefore hot fluids are not expected at depth (i.e. below 1km) in this area (based on description of VSI). Prospect area: Geological, geochemical and geophysical surveys recognized a geothermal prospect area located in the up-flow system of the Hu u Daha geothermal area. The prospects covers an area of about 10 km 2 recognized by rich distribution of mercury and CO 2 (H. Sundhoro et al., 2008). 63

89 Fig. 3-6 Geothermal area of Hu u Daha (after J. Brotheridge et al., 2000) Wai Sano Wai Sano is a 2.5 km diameter Crater Lake in the center of G. Wai Sano on the SW corner of Flores Island. Surface geoscientific studies (geological, geochemical and geophysical surveys) have been carried out by CGR. The resource potential was estimated as 50 MW by JICA (2007). The geoscientific description in Wai Sano is published by the Volcanological Survey in Indonesia (VSI), JICA (2007) and published papers. Based on the descriptions, geoscientific data in Wai Sano is reviewed as follows. Geology: G. Wai Sano is an upper Quaternary andesitic volcano resting on the older Quaternary andesites of Pegunungan Geliran. Some pumiceous debris is incorporated in the Wai Sano pyroclastics. Wai Sano is regarded as an older Quaternary volcano since no historic eruptions have been recorded. However, there are many features of the topography suggesting that volcanism is not that old and certainly likely to be less than 1 Ma (Fig. 3-7). Surface geothermal manifestations and Geochemistry: Thermal activity at Wai Sano is centered on the Crater Lake which is elongated NW SE and about 3 km long at an elevation of 620 m. The hottest thermal features (98 o C) are found along the edges of the lake but associated thermal activity covers an area of about 100 km 2. Slightly acidic springs are found at the main Wai Sano thermal area and at Wai Bobok slightly further south on the lake shore. The spring fluids have high salinity attested by the presence of salts encrusting the spring margins. In both these areas the alteration is reminiscent of very acidic fluids and fumarolic activity with sulphur and H 2 S smell in common. A group of warm bicarbonate type springs occur to the north east of Wai Sano in the Wai Werang and Wai Rancang valleys. About 10 km to the east near the main road is the Namparmacing spring, which has a temperature of 45 o C, ph 6-7 with only a small outflow. Activity here was much greater in the past with this spring lying within a sinter sheet about 30 by 70 m. About 2 km further 64

90 NE there is an even more impressive sinter sheet about 250 m long and 100 m wide draping over the river terrace and down the sides of a small gorge into the Wai Rendong river. Only small flow warm springs were present in The elevation of the boiling springs on the shores of Wai Sano suggests the presence of a significant geothermal reservoir at depth (R. D. Johnstone, 2005). Contain significant magmatic water, possibly arising from previous volcanic activity near G. Wai Sano. Main fluid flow pattern is from Wai Sano to north and northeast. Spring water geothermometries suggest a reservoir temperature around o C or higher (JICA, 2007). Geophysics and Prospect Area: Possible area is defined based on low resistivity zone (Schlumberger <10 ohm-m (AB/2=1000m)). The low resistivity zone coincides with the volcanic crater (D. Sanongoang). There is a possibility that the hydrothermal alterations are developed in the volcanic crater (Fig. 3-8, JICA, 2007). 65

91 Fig. 3-7 Geological map in Wai Sano (after JICA, 2007) 66

92 Fig. 3-8 Resistivity survey result in Wai Sano (after JICA, 2007) Ulumbu The Ulumbu geothermal field is located on the south western flank of the Poco Leok volcanic complex, about 13 km SW of the active volcano Anak Ranaka near the provincial capital of Ruteng. The spectacular fumarole field in the Wai Kokor valley (650 m) dominates the thermal activity at Ulumbu and contributes to the dominant proportion of the estimated 100 MW thermal natural surface heat flow from the system. Scattered over a large area to the east, west and south of the fumaroles are a number of warm bicarbonate type springs with low chloride contents. Preliminary scientific surveys were mostly conducted by the VSI. Exploration/production drilling was carried out by PT PLN, with assistance from GENZL and the New Zealand Ministry of Foreign Affairs and Trade. Test results suggested that at least 15MWe could be generated by the three wells (Kasbani et al. 1997). The resource potential was estimated as 150 MW by JICA (2007). Although pre-feasibility and feasibility studies were carried out funded by the New Zealand Ministry of Foreign Affairs and Trade (MFAT), the available data is limited. Followings are summary on the geothermal resources in Ulumbu based on published papers. 67

93 Geology: Flores Island forms part of the Banda Island arc system that comprises Upper Cenozoic volcanic rocks with volcanogenic and carbonate sediments (Hamilton, 1979). The volcanic rocks are dominantly of mafic and intermediate calc-alkaline composition and are unconformably underlain by Tertiary sediments. The oldest rocks exposed are of Middle Miocene age (Koesoemadinata et al., 1981). The Ulumbu field occurs on the southern flank of the Poco Leok volcanic complex and is about 650 m above sea level (KRTMERT, 1989). The youngest rocks outcrop approximately 7 km north of Poco Leok. These are andesites, basaltic andesites, silicic andesites and dacite domes that overlie rocks of the Poco Rii volcano which erupted lavas and breccias, dominated by andesitic to basaltic andesite lithologies. The most recent volcanic event in the region was the 1987 eruption of a dome of silicic andesite - dacite (Anak Ranakah), about 10 km north east of Poco Leok (Sjarifudin & Rakimin, 1988) (Kasbani, et al., 1997). Surface geothermal manifestations and Geochemistry: Most thermal features in the Ulumbu geothermal field occur over an area of about 28 km 2 within the crater and on the western and southwestern flanks of the Poco Leok complex. Features include hot springs, fumaroles, mud pots and steaming ground. The springs are mostly characterized by high concentrations of sulphate, very low chloride content and low ph (-3), but some are of neutral ph - bicarbonate type. No chloride waters discharge at the surface. Geophysics: Schlumberger resistivity surveys were carried out over the Ulumbu prospect in 1982 and (Simanjuntak 1982 and 1985). The survey results are summarized in VSI website as follows. Most of the Schlumberger measurements were in the form of soundings to AB/2=2000 m, along surveyed lines. The lines were concentrated in a 100 km 2 area centered on Wai Kokor, although some additional lines were also measured further north (around Ruteng). The surveys appear to have delineated a potential geothermal reservoir area which includes the Wai Kokor thermal area. Significantly, a survey line which extended further east across the Mesir, or Lunggar, "thermal" area indicated generally higher resistivities at depth (10 ohm-m), but low resistivity near-surface. This may mean the Lunggar area is now almost cool, and there is only an alteration zone near surface which is contributing to the low resistivity. It was not possible to ascertain whether or not there is a surface thermal anomaly in this area. The zone of lowest resistivity appears to be roughly delineated by the 10 ohm-m apparent resistivity contour on the AB/2=1000 m spacing map. The underlying geothermal system probably has a simpler shape than shown by this contour, but the contour may be indicative of the total area of lowest resistivity. This is of the order of 10 km 2, but the estimate is clearly poorly controlled in several places, particularly in the region of higher topography to the north. Geographically, the low resistivity anomaly extends to around Wai Mantar in the north, and possibly to Wai Garit in the south. Very low resistivities, which were found at 68

94 depth 2 km further south, may be influenced by conductive sediments beneath the volcanic pile. The most attractive target area based on geophysical survey results was proposed as the north of the Wai Kokor thermal area, in the region of higher topography. Exploratory Well Study: Three deep wells were drilled from the same drill pad in less than 100 m away from the fumaroles. One is vertical and the others deviated. The measured temperatures are up to 240 C with a productive steam zone at 750 m (Fig. 3-9, Grant el al., 1997; Kasbani et al., 1997). The deepest well (ULB-01) encountered Quaternary volcanics to a depth of 838 m with Tertiary sediments below this to the well bottom, at 1887 m. ULB-02 is directionally drilled to the NE and was the main producer with about 12 MW of dry steam. PT. PLN continues to pursue the options for installation of a power plant (Kasbani, et al., 1997; R. D. Johnstone, 2005). 69

95 Fig. 3-9 Hydrothermal mineral zonation in Ulumbu (revised Kasbani, et al., 1997) 70

96 3.4.4 Bena-Mataloko The Mataloko (Bajawa) Geothermal area (500-1,400 m a.s.l) is located in Ngada regency, East Nusatenggara, and lies between ' ' E latitude 08 48'30" '30" longitude. It has good accessibility and high rain fall (± mm/year). The comprehensive survey had been conducted by VSI, NEDO (New Energy Development Organization)-Japan, and GSJ (Geological Survey of Japan) in FY 1998 i.e. geology, geochemical, geophysical surveys and 103 m depth well-drilling. The geophysical consist of MT (Magneto Telluric), CSAMT (Control Source Audio Magneto Telluric), Schlumberger resistivity and Gravity methods. The resource potential was estimated as 30 MW by JICA (2007). After NEDO study, additional wells have been drilled and constructed 2.5 MW geothermal power plant. The geothermal resource in Bena-Mataloko was summarized by VSI, JICA (2007) and published papers. Based on these descriptions, geothermal resources in Bena-Mataloko are summarized as follows (Figs and 3-11). Geology: The Mataloko andesite and the volcanic of Bajawa composed of fresh to weathered lavas, thick pyroclastic, cropping out in Mataloko and Bajawa areas, deducing as a caldera and post caldera forming eruption products. The SE-NW trending fault systems are occupied by regional structures of Central Central Flores, which probably influenced by the tectonic driving from the South. Generally the thermal discharges are associated with structure or fracture system passing through SE-NW, SW-NE and N-S direction. The SE-NW Waeluja normal fault is a major control structure of thermal channel fluids of he Mataloko geothermal area, indicated by trend of hot springs and alteration zone distributions. The SW-NE Boba normal fault is characterized by an old topographic lineation, escarpment and triangular facets in some places. The N-S structure pattern is represented by an existence of volcanic lineaments that are probably strongly affected by a combination of normal and strike slip fault systems. The large geothermal distribution along that trending fault direction, interpreted as a fracture type geothermal system dominated the Bajawa geothermal area (JICA, 2007). Surface geothermal manifestations: The Waeluja alteration zone characterized by an NW-SE strongly argilitic alteration (natroalunite, alunite, alunogen, crystobalite and quartz). In the lateral order, they are divided into alunite-illite, kaolinite and montmorilonite zones. The alunite-illite zone is located in the inner part, probably affected by a strongly sulphuric acid and high temperature solutions which are indicated by alunite mineral. The kaolinite zone is characterized by kaolinite, crystobalite, quartz and montmorilonite which are probably affected by acidic and weak acidic solutions. The outer zone is montmorilonite, which is possibly driven from a weathering process as well. The NE-SW Nage alteration zone is characterized by silicification-argilitization (Pyrophilite, quartz, and gypsum), which is probably associated with the first episode condition (affected by strongly sulphuric acid 71

97 solution). Teh west flank of Bobo young volcanic cones (1400 m asl) represent a fumarolic field which consists mainly of alunite, kaolinite and crystobalite clay alterations (probably affected by a strongly sulphuric acid solution of high temperature condition). The Thermo-luminescence dating of quartz from Waeluja and Nage alteration minerals represents ages of Ma and less than 0.2 Ma respectively. They probably indicate the thermal history of the preliminary Waeluja and Nage faults. Therefore, high subsurface temperatures of hydrothermal system are probably still existing (based on description of VSI). Geochemistry: The chemical analysis of thermal discharges that represents high sulphate, low chloride, sodium, and calcium contents, is indicating the sulphate type water. The high sulphate suggests that the volcanic gases particularly H2S oxidize closed to the surface, influencing shallow ground water (based on description of VSI). Main thermal manifestations in Mataloko are fumaroles and steam-heated acid hot springs. Reservoir fluid originates essentially in meteoric water. The shallow steam-dominated reservoir is likely to be derived from deep liquid-dominated hot reservoir. From fumarolic and well discharge gas geothermometries, reservoir temperature is estimated to be oC at the shallow reservoir and oC at the deep reservoir. Geophysics: The very comprehenship geophysical survey was conducted to provide integrated information on the electrical resistivity distribution of the Mataloko, Bobo, and Nage manifestation areas. The 2-D resistivity model shows that generally a thin high resistivity surface layer except the manifestation zone. Below it, the Mataloko area is entirely underlain by a low resistivity layer (<10 Ohm-m) in the shallow zone, and very low, as low as 1 Ohm-m, near the manifestation zone. This is interpreted as a clay-rich zone which corresponds to ca layer of the geothermal reservoir system. The thickness of the conductive layer becomes larger to western part of the Mataloko area, but less conductive. A large-high resistive layer is interpreted below this cap layer in the Mataloko surface manifestation zone. The CSAMT data shows the discontinuity resistivity structures near manifestation zone which is interpreted as fractures zone, while the Head On represents that the normal fault yields a dipping 70 to the North. Shallow Exploratory Wells Study: Three shallow exploratory wells MTL-1, MT-1 and MT-2 have been drilled in the Mataloko geothermal field in this project. This project was successfully completed with the flow-test steam production of 15 tons per hour from the well MT-2 at the depth of m. After the flow-test, this well was deepened to m (Figs and 3-13). 72

98 Fig Compiled map of geothermal activity in the Nage and Wolo Bobo areas (JICA, 2007) Fig Compiled map of geothermal activity in the Mataloko Area (JICA, 2007) 73

99 Fig Location of exploratory wells in Mataloko (Muraoka et al., 2005) Fig Photograph of the flow twist of NEDO MT-2 well (Muraoka et al., 2005) 74

100 3.4.5 Sokoria-Mutubusa The Sokoria-Mutubusa geothermal field in central Flores and the association of the geothermal activity with the volcanism at Kelimutu is reported R. D. Johnstone (2005) and JICA (2007). The resource potential is estimated as 90 MW by JICA (2007). Preliminary scientific survey was mostly conducted by the CGR. Drilling of slim shallow wells was carried out by CGR. In addition, MT/TDEM survey was conducted by JICA (2007). Surface thermal activity covers an area of about 100 km 2 centered on the Kelimutu volcano. A feature of the thermal activity at Sokoria is the existence of fumaroles at high elevations (1,200 m asl) (Mutubusa and Mutulo o), and lower elevation (<900 m asl) springs with a wide variety of chemical compositions, being interpreted as mixtures of groundwater, with magmatic,geothermal steam condensate, and geothermal reservoir fluid of neutral ph, and chloride type. In the lowest elevation area, neutral ph springs at Detu Petu and Landukura and acid springs at Jopu exist. The temperature estimated by the method of Giggenbach (1988) indicated a trend towards equilibrium temperatures of o C. Springs on the south side of the complex occur along the trace of the near vertical Lowongolopolo Fault (R. D. Johnstone, 2005). Geology: Sokoria-Mutubusa geothermal prospect is located 30km north of Ende, East Nusa Tenggara. The poorly known Sokoria caldera in central Flores Island, NE of Iya volcano is of 8 km in diameter (Fig. 3-14). A 750-m-high northern caldera wall rises above the village of Sokoria in the center of the caldera. The southern caldera wall is very irregular. A small fumarolic area on the western flank contains several vents that eject geyser-like water columns with a smell of hydrogen sulfide. The Ndete Napu fumarole field, located at 750 m elevation along the Lowomelo river valley in central Flores Island, originated during In 1932 it contained mud pots and high-pressure water fountains. The age of volcanism in the Ndete Napu area is not known precisely, but it was included in the Catalog of Active Volcanoes of the World (Neumann van Padang, 1951) based on its thermal activity (JICA, 2007). Geochemistry: Surface manifestations around Keli Mutu volcanic complex are spread over a wide area. Reservoir fluid originates essentially in meteoric water. Spring waters in Roga and Jopu at the south foot of Keli Mutu may be derived from outflows from the mountain side and contain some magmatic fluid. Hot springs in Sokoria may be derived from various kinds of fluids including shallow condensate, deep reservoir water and outflow containing magmatic fluid. Occurrence of fumaroles in Mutubasa suggests existence of another up flow center of hot fluid there besides the Keli Mutu system. Reservoir temperature was estimated higher than 180 o C at least, and possibly up to 320 o C from gas and Na/K geothermometries (JICA, 2007). 75

101 Geophysics: Schlumberger method was conducted by CGR. JICA (2007) conducted geophysical survey (MT/TDEM method) in the Master Plan STudy. The survey results of JICA study are summarized as follows: Three resistivity discontinuities were detected. Considering the geological survey results, resistivity discontinuity probably reflects a Caldera rim, and is likely to reflect a fault structure. In the central portion along the of resistivity discontinuity, a low resistivity zone of less than 5ohm-m probably reflecting reflects low-temperature hydrothermal-alteration minerals (smectite etc) acting as the cap-rock of the reservoir is recognized. In addition, underlying the low resistivity zone along the discontinuity, a relatively higher resistivity zone of greater than 30ohm-m possibly reflecting reflects high temperature alteration products such as illite and/or chlorite is detected. Hence the area along resistivity discontinuity at depth is possibly indicative of a higher temperature zone at depth. Therefore it is highly probable that the central portion of resistivity discontinuity reflects a part of the fault-like structure where geothermal fluid may circulate at depth in the Sokoria field. Based on these facts, the zone along resistivity discontinuity is likely to be a promising zone for geothermal development in the Sokoria field. Reservoir extent was estimated in Caldera structure, based on low resistivity zone (Schlumberger <5 ohm-m), surface manifestation and geologic structure trending NNW-SSE (JICA, 2007). Fig Prospect Area in Sokoria Mutubusa (J. Brotheridge et al., 2000) 76

102 3.4.6 Oka-Larantuka Preliminary geoscientific survey was mostly conducted by the CGR. The resource potential was estimated as 90 MW by JICA (2007). Results of surface geoscientific surveys are summarized as follows based on R. D. Johnstone (2005). Thermal features on the eastern end of Flores occur in three clusters; Oka hot springs on the south eastern side of the island, Kawalawu hot springs on the north western side of the island, and the Riang Kotang alteration area in the saddle between Ili Padang and Ili Waikerewak hills, between the two sets of coastal springs. Several springs are found at Oka over a 200 m interval inland from the seashore. The hottest spring is 60.1 o C, with a flow of about 3 l/s, and notable thin salt layer coating the rocks surrounding the pool. Total flow from the Oka area is estimated at about 15 l/s. At Kawalawu the main spring occurs just above high tide level, has a temperature of 51.2 o C, and a flow of about 3 l/s. Other springs are reported to have occurred to the east and west of the present springs prior to the 1991 earthquake. But these are now covered with rocks and sand. Both spring groups are slightly acid with ph 5-6. The slight acidity is reflected in elevated sulphate contents of the springs suggesting that these waters have undergone a moderate steam heating process. There are significant differences in the chemistry between the two springs indicating that they either originate from different parent fluids, or have been modified significantly before reaching the surface. Silica geothermometers give temperatures of about 170 o C for both springs and although the springs fall in the immature field of Giggenbach (1988) the trend line points towards temperatures of 250 o C. The volcanic rocks in the area are Pliestocene to recent, forming a poorly dissected group of coalescing volcanic cones up to about 1,240 m high. Young craters occur about 6 km to the east and NE of the springs and the active Ili Leroblong volcano (Kusumadinata, 1979) is about 10 km to the SW. The location of the springs provides little evidence for an association with a particular volcanic heat source Atadei The Atadei geothermal field belongs to Atedei Subdistrict, District of Lembata, and East Nusa Tenggara Province. The field situated about 45 km southeast of Lewoleba city as the capital city of Lembata District. The preliminary works were conducted by the Volcanological Survey of Indonesia, but it has not been developed yet. The Atadei geothermal field is composed of Quaternary old and young volcanic rock unit and the geological structures are characterized by Watuwawer and Bauraja calderas, Watuwawer and Mauraja normal faults of NE-SW trend and Waibana normal fault of NW-SE. The surface manifestation consists of hot springs (32-45 C), fumaroles (80-96 C), steaming ground (96-98 C) and altered rock. The anomalies of Hg and CO 2,,which is almost the same with those of resistivities, extend in the south to southeast of the Atadei geothermal field, around the Watuwawer village. 77

103 Based on the study results by F. Nadlohyert al (2003), there are three prospect areas Watuwawer 4.5 km 2 with the electrical potential of MWe, Lewo Kebingin, 0.25 km 2 with electrical potential of 1-2 MW and Waru, 1.5 km 2 with electrical potential of 7-10 MW. The Watuwawer prospect area is the most prospective area for the development of the Atadei geothermal field in the future. The resource potential was estimated to be 50 MW by JICA (2007). The geoscientific description in Atadei is published by the Volcanological Survey in Indonesia (VSI). Based on the description, characteristics of the geothermal resource in Atadei are summarized as follows. Geology: Lomblen Island is a part of the Banda Island arc system which comprises Upper Cenozoic volcanic rocks with volcanogenic and carbonate sediments. The volcanic rocks are dominantly of mafic to intermediate calc-alkaline composition and are uncomfortably underlain by the Tertiary rocks. The oldest rocks are of Miocene age and exposed on northern part of the island. The youngest rocks in the area in relation with the most recent volcanic event in the island occur on Mt. Ili Werung and Mt. Hobal, approximately 6 km South East of the surveyed area. The Quaternary volcanic rocks consist of lava and pyroclastic deposits, which were mostly erupted from the vents of Mt. Watulolo, Mt. Atalojo, Mt. Benolo and Mt. Watukaba. These rocks are dominantly of basaltic andesite composition, however, there are deictic rocks exposed on a narrow area at the north Watukaba caldera wall. The secondary deposits are alluvial and debris avalanches deposits. The later is a very recent deposit due to slope instability of intensively altered volcanic rocks and buried the former sub district capital town of Atadai with about of 500 peoples died in The area photograph interpretation shows that there are two main trending structures/lineaments: NW-SE and NE-SW. The NW-SW one likely controls the volcanism and the volcanic vents presumably moved from the NW to the SE, where Mt. Iliwerung is the youngest (based on description of VSI). Surface geothermal manifestations: Most thermal features in the Atadai geothermal area occur over area boundaries by a couple of NE-SW trending faults: Kowan and Lewo geroma faults in the North and South, respectively. Features include hot spring, steaming/hot grounds and altered rocks. The springs have temperature up to 35 C and are mostly characterized by nearly neutral ph and bicarbonate type, but some are of high sulphate content, very low chloride content and low ph. No chloride waters discharge at the surface. The steaming/hot grounds have near surface temperatures up to 98 C and occur with in the Watukaba caldera, on the western flank of Mt. Ilikoti and eastern flank of Mt. Benolo. The volcano-stratigraphy study and thermal manifestation suggest that the heat source for the Atadai geothermal area is beneath the Atalojo crater and Watukaba caldera. The intensive alteration mostly occurs in area boundaries the couple of NE-SW normal faults: Kowan and Lewogeroma. However, some samples taken from the western flank at Mt. Ilikoti show that the rocks have been pervasively altered by neutral ph fluid (based on description of VSI). 78

104 3.4.8 Tulehu The geoscientific description in Tulehu was compiled by JICA (2007). The resource potential was estimated as 40 MW by JICA (2007). Based on the description, characteristics of geothermal resources in Tulehu are summarized as follows. Geology: The area is located at the east coast of Ambon Island. The geological units are divided by several NE-SW trending faults and warm springs are situated along these faults (Fig. 3-15). Geochemistry: Reservoir fluid originates in meteoric water and seawater. Detailed fluid flow pattern is not clear. Reservoir temperature is estimated around 230 o C or higher. Prospect Area: Possible area was defined by PT. PLN based on the low resistivity zone, surface manifestation, geologic structure and geochemistry. The resistivity data and geologic structure indicate the possibility that the possible area become wider than that defined by PT. PLN (Fig. 3-16). 79

105 Fig Geological map in Tulehu (JICA, 2007) 80

106 Fig Prospect Area in Tulehu (JICA, 2007) Jailolo The geoscientific description in Jailolo is published by the Volcanological Survey in Indonesia (VSI). The resource potential was estimated as 40 MW by JICA (2007). Based on the description, characteristics of geothermal resources in Jailolo are summarized as follows. Geology: Thermal features of this field occur mainly around the flanks of G. Jailolo which forms a small peninsula on the west coast of central Halmahera Island. The oldest rocks in the area are Tertiary, with andesites and basalts overlain by a deictic ignimbrite which outcrop to the east of the thermal features on an uplifted fault block. Early Quaternary eruptive centers are situated at G.Toada (east of Teluk Jailolo) and to the SW of G. Jailolo in the Teluk Bobo-Kailupa area. The Jailolo Volcanics overlie these older units and consist of basalts erupted from G.Jailolo followed by andesite which were erupted from the vicinity of a 1.75 km diameter crater further to the east at Idamdehe (based on description of VSI). Surface geothermal manifestations: The highest temperature of thermal features in Jailolo are in the eastern part of the field with steaming ground inside the Idamdehe crater (97 o C), on the south side of Manjonga hill (78 o C) and springs (84 o C) on the coast SW of Manjonga hill. The remaining 33 known springs are around the edges of G.Jailolo and at Todowangi to the NW of G.Toada, and have temperatures lower than 45 o C and flows up to 10 l/s. 81

107 The springs cover an area of about 75km 2. It is considered that the eastern part of the field around Kawah Idamdehe is the most promising for obtaining a geothermal resource if one of significance exists (Fig. 3-17). Geochemistry: There are a number of thermal features within this prospect. To the west of G.Jailolo at Idamdehe within a small collapsed structure and at 175 m.a.s.l. there is some very hot (97 o C) steaming ground. A further piece of steaming ground (78 o C) is located at 125 m.a.s.l., 3 km south-west of Idamdehe at Bukit Manjanga. Hot outflows occur at six locations but at sea level. Only one near-complete analysis is available, and the Ca/Mg ratio and elevated chloride sulphate and bicarbonate may indicate an influx of seawater rather than a diluted outflow from a cool source. Evidence of a possible high temperature (>180 o C) resource is indicated by silica deposition at the two hottest seepages at Sorogogo (84 o C) and Arugani (75 o C) respectively and both have flows less than 0.5 l/second. Only two hot springs are recorded with flow rates greater than 6 l/second and these occur at Balesoan (50 l/sec) and Gamtala (10 l/sec). There are a number of wells around G.Jailolo flanks which have been sunk to supply hot water (based on description of VSI). Geophysics: Approximately 75 Schlumberger traversing stations, and 14 soundings were carried out in the Jailolo prospect area during 1982 (Simanjuntak, 1982). The traversing measurements were at the standard AB/2 spacings of 500 m and 1000 m, and most of the soundings were up to AB/2=1000 m. G.Jailolo is surrounded on its northwest, west and south sides by sea. On the north and east sides, there are broad areas of low-lying swamp which are likely to contain unknown thicknesses of conductive sediments and fluids. With the exception of the small Idamdehe kawah at an elevation of 205 m.a.s.l., the other thermal manifestations (springs) are at low elevations surrounding the flanks of G.Jailolo. Thus low resistivities are to be expected at low elevation around G.Jailolo, and the critical question is whether the low resistivity extends a significant distance beneath the higher parts of the mountain (peak elevation of 1130 m.a.s.l.). None of the soundings centered above 250 m.a.s.l. imply very low resistivity at depth (i.e. <10 ohm-m). However the upper parts of G.Jailolo have a very high resistivity, so most of the sounding curves are steeply descending, and there is some uncertainty about how low the resistivity is at great depth (>1 km depth). Despite this uncertainty, the relatively high apparent resistivity (>50 ohm-m) at AB/2=1000 on most traversing stations, and in all soundings at elevations above 250 m.a.s.l., suggests there is not an extensive geothermal system beneath G.Jailolo. Low resistivities occur beneath the eastern flanks of G.Jailolo, especially along the survey line that is the closest to the Idamdehe kawah. In situ resistivities of <10 ohm-m are suggested here, and these extend sufficiently inland to be mostly likely caused by the presence of thermal fluids. With only one traversing survey line across this area, the boundaries of the low resistivity zone are poorly delineated. A circular area of radius 1 km 82

108 (area 3 km 2 ), centered near the Idamdehe kawah has been assumed (based on description of VSI). Fig Geothermal model in Jailolo (after VSI) 83

109 Chapter 4 Environmental and Social Aspect 4.1 Environmental Assessment System The Ministry of Development and Environment (PPLH) was established in 1978 in Indonesia and takes charge of environmental administration. Act of the Republic of Indonesia concerning environmental management (act No.4/1982), which national environmental administration issues were described, was promulgated. PPLH transformed into the Ministry of Population and Environment (KLH) in For strengthening the function of KLH, the Environmental Management Agency (BAPEDAL) was established as an implementation agency for environmental administration based on Degree of President No.23/1990. KLH was demergered and LH was established in March BAPEDAL transformed its structure and strengthened the function by Degree of President No.77/ 1994, which brushed up the system on implementation of countermeasures for preservation of the environment and public hazards. According to central government policy, local government has right to act for preservation of the environment based on paragraph 3 article 18 of Act of the Republic of Indonesia concerning environmental management, and BLH of each province enforces the environmental issues. Authority concerned and provinces, which have jurisdiction over project, are capacitated enforcement of environmental impact assessment. They organize the committee of environmental impact assessment for prescreening and examining AMDAL report. General committee of environmental impact assessment is organized for enforcing the environmental impact assessment of the project, which has not only one authority concerned. BEPEDAL administrates coordination of environmental impact assessment study. To reflect the article 16 of Act of the Republic of Indonesia concerning environmental management, the Government Regulation No. 29/1986 regarding the Environmental Impact Assessment was promulgated. Considering the results of many developments, regulation regarding Environmental Impact Assessment Government Regulation No. 51/1993 was enacted. In Indonesia Environmental Impact Assessment is called as Analysis Mengenai Dampak Lingkungan (hereafter AMDAL). AMDAL is categorized into three types according to the intensity and extent of the proposed development. AMDAL KegiatanTerpadu/Multisektoral; the significant impacts of a proposed integrated business or activity on the environment, where that business or activity is located in a single ecosystem type and also involves more than one authorized government agency. AMDAL Kawasa; the significant impacts of a proposed integrated business or activity located in a single ecosystem type, which are under the authority of a single authorized government agency. AMDAL Regional; the significant impacts of a proposed integrated business or 84

110 activities located in a single ecosystem type in a development planning area as defined by the regional spatial plan, which involves more than one authorized government agency as part of the decision-making process. The significant impacts are fundamental changes to the environment, which result from a proposed business or activity, and impact significance is determined by 7 parameters (number of affected people, aerial extent, duration, intensity, number of other affected environmental components, cumulative nature, reversibility / irreversibility) in decree concerning guidelines for the determination of significant impacts decree No. Kep-056/1994. Types of business and activity that may cause the significant impacts on the environment are specified in 14 kinds sectors. The details of activity and its scale were once announced by decree concerning types of business or activities required preparing an environmental impact assessment, decree No. Kep-11/Menlh/3/1994, the kind and scale of the business and activities were revised by decree of sate minister for environment on types of business or activities required to prepare an environmental impact assessment, decree No. 17/ (14 sectors, 84 activities) Environmental Impact Statements called as Analysis Dampak Lingkungan (hereafter ANDAL) and it is a detailed and in-depth research study on the significant impacts of a proposed business or activity. And also the management plan and monitoring plan shall be prepared in order to manage and monitor the significant impacts of proposed business and activity. Environmental Management Plan --- called as RKL (Rencana Pengelolaan Lingkungan Hidup) in Indonesia Environmental Monitoring Plan --- called as RPL (Rencana Pemantauan Lingkungan Hidup) in Indonesia The geothermal power generation smaller than 55MW and transmission line smaller than 150kV are no necessary to prepare AMDAL, but Environmental Management Effort (UKL: Upaya Pengelolaan Lingkungan) and Environmental Monitoring Effort (UPL: Upaya Pemantauan Lingkungan) should be submitted according to ministry decree No. 86/ Legislation, Standards and Regulations Relating to the Environment (Geothermal Development Related) 85

111 4.2.1 Air The environmental quality standard for hydrogen sulfide in air is as shown in Table 4-1. Standards for the discharge of hydrogen sulfide from stationary sources were revised in 1995, and the new geothermal power plant (January 1, 2000 onwards) will be regulated in the manner shown in Table 4-2. Table 4-1 Environment Quality Standards for Air Pollution Item Measuring condition Standard value (ppm) Hydrogen sulfide (H 2 S) Value of 30 min. Source: Enclosure III, Decree of State Minister of Population and Environment Number: KEP 02 / MENKLH / I / 1988 Date: January 19, (= 42μg/m 3 ) Table 4-2 Gas Exhaust Standard (Stationary Source) Item Unit Standard value Hydrogen sulfide (H 2 S) mg/ m 3 35 (Total Reduced Sulfur) (approx. 25ppm) Source: KEPUTUSAN, MENTERI NEGARA LINGKUNGAN HIDUP Number: KEP. 13 / MENLH/ 3 / 1995 TENTANG, BAKU MUTU EMISI SUMBER TIDAK BERGERAK Water The environmental quality standards for water, which should be related to geothermal development, are as indicated in Table 4-3. Table 4-3 Environmental Quality Standard for Water (Drinking Water Usage) No. Item Unit Maximum concentration Remark 1. Odor - - No odor 2. Total Dissolved Solid mg/l 1,000 Substances (TDS) 3. Turbidity NTU Scale 5 4. Taste - No taste 5. Temperature degree Atmosphere temp. ±3 6. Color TCU Scale Arsenic mg/l Chloride mg/l PH Mini-Max 10. Sulfide as H 2 S mg/l 0.05 Source: PERATURAN PEMERINTAHREPUBLIK INDONESIA 86

112 Number: 20, 1990 The quality standards of liquid waste from geothermal activity was not clear in Government Regulation No. 20/1990, it was revised by decree of state minister of Environment Quality standards of liquid waste of natural and gas as well as Geothermal activities decree No. Kep-42/MENLH/10/1996. The quality standards of liquid waste for geothermal exploration and production activities are in Table 4-4. Table 4-4 Quality Standards of Liquid Waste Item Unit maximum Dissolved sulphide acid (as H 2 S) mg/l 1 Dissolved ammonia (as NH 3 ) mg/l 10 Mercury mg/l Arsenic mg/l 0.5 Temperature degree 45 PH Source: Attachment III, KEP 42 / MENLH / 10 / 1996 Date: October 9, Noise Standards for noise according to type of land use and activity area are shown in Table 4-5. Table 4-5 Standards of Noise Level Items db (A) a. Area Usage 1. Residential Commercial Office and Trade Open Green Area Industry Government and Public facility Recreation (Resort) Special - Airport - Train station - Shipyard 70 - National Port 60 b. Activity Area 1. Hospital School Place for pray / Church / Temple / Mosque 55 Source : LAMPIRAN I; DEPUTUSAN MENTERI NEGARALINGKUNGAN HIDUP Number : KEP 48 / MENLH / 11 /

113 Date : 25 NOVEMBER 1996 Noise abatement measures should achieve either the levels given in Table 4-6 below or a maximum increase in background levels of 3 decibels (measured on the A scale) [db (A)]. Measurements are to be taken at nose receptors located outside the Project property boundary. Table 4-6 Standards of Noise Level at Source Maximum allowable log Equivalent (hourly measurements), in db (A) Receptor Day (07:00 22:00) Night (22:00 07:00) Residential, Institutional, Educational Industrial, Commercial Subject for Environmental Impact Assessment Environmental conditions and impacts in the objected area of the geothermal power project, whose capacity is more than 55MW, should be checked by application of AMDAL. In geothermal power projects in and around the following legally protected areas, it lies under an obligation to prepare AMDAL, even if its capacity is less than 55MW. In case that the AMDAL is not necessary, Environmental Management Effort (UKL) and Environmental Monitoring Effort (UPL) should be submitted according to the requirement of the ministry decree No. 86/2002. In accordance to the Act on Forestry No. 41/1999, forest area is categorized as Conservation Forest, Protection Forest and Production Forest, for which is defined as in Table 4-7. Conservation Forest is a forest area having specific characteristic established for the purposes of conservation of animal and plant species and their ecosystem. Protection Forest is a forest area designated to serve life support system, maintain hydrological system, prevent of flood, erosion control, seawater intrusion, and maintain soil fertility. Production forest is a forest area designated mainly to promote sustainable forest production. Production forest is classified into permanent production forest, limited production forest, and convertible production forest. Geothermal power development activity can be conducted in the forest restricts in special circumstances. Government Regulation No.2/2008 approves geothermal power development activity in protection forest and production forest in exchange for tariff or government income on using forest area. Geothermal power development activity in kinds of the conservation forest is not allowed according to government regulation No.41/1999. The 88

114 project implementation body should pay attention about the location of prospect where is included conservation forest or not. There are 37 geothermal prospects in the eastern provinces according to the data of Geological Agency. 11of 37 prospects are checked the geographical relation between prospects and the conservation forest. These results are shown in Figs. 4-1 to 4-6. The forest condition of the other 26 prospects should be confirmed when the project areas are selected. On the bases of the collected information so far, forest conditions were checked as follows. (1) Huu Daha The Huudaha prospect is located at Parado and Tenu Tenawo village of Monta district, Regency of Bima in Nusa Tenggara Barat Province. The prospect area is located in production forest and possibly includes protection forest. (2) Wai Sano The Waisano prospect is located at Nara, Rawe and Nanggali village of Sononggoang district, Regency of Manggarai in Jambi Province. The prospect area is located in non-forest area and possibly includes protection forest. (3) Ulumbu The Ulumbu prospect is located at Ruteng, and Poco Ranakah village of Sataramese district, Regency of Manggarai in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in non-forest area and possibly includes conservation forest. (4) Bena Mataloko The Bena Mataloko prospect is located at Bodo and Boawai village of Mogomang Ulewa district, Regency of Ngada in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in non-forest area. (5) Sokoria Mutubusa The Sokoria or Mutubusa prospect is located at Ende village of Ende district, Regency of Ende in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in production forest and possibly includes protection forest and non-forest area. 89

115 (6) Oka Larantuka The Oka Larantuka prospect is located at Wutuwiti village of Larantuka district, Regency of Florest Tiur (East Flores) in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in production forest and possibly includes protection forest and non-forest area. (7) Ili Labaleken The Ili Labaleken prospect is located at Watalolong village of Nagawulan district, Regency of Lembata in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in protection forest and possibly includes non-forest area. (8) Atadei The Atadei prospect is located at Labla and Hadakewa village of Atadei district, Regency of Lembata in East Nusa Tenggara (Nusa Tenggara Timur) Province. The prospect area is located in non-forest area and possibly includes protection forest. (9) Tonga Wayana The Tonga Wayana prospect is located at Babang and Wajaua village of Bacan district, Regency of South Halmahera in Maluku Province. The prospect area is located in conservation forest and possibly includes production forest. (10) Tulehu The Tulehu prospect is located at Liang village of Salahutu district, Regency of Central Maluku in Maluku Province. The prospect area is located in protection forest and possibly includes non-forest area. (11) Jailolo The Jailolo prospect is located at Hokuhokukie village of Jailolo district, Regency of West Halmahera in North Maluku Province. The prospect area is located in non-forest area. According to the information collected so far, there are no serious environmental problems to proceed to the project in the objected areas. However more detailed information on environment should be collected before starting the project. 90

116 Table 4-7 Classification of Forest Area Forest Area (Kawasan Hutan) Conservation Forest (Hutan Consavasi) Sanctuary Reserve area (Kawasan suaka alam) Strict Nature Reserve (CA: Cagar Alam) Wildlife Sanctuary (SM: Suaka Margasatwa) Nature conservation area (Kawasan pelestarian alam) National Park (TN: Taman Nasional) Grand Forest Park (THR: Taman Hutan Raya) Nature Recreation Park (TWA: Taman Wisata Alam) Game Hunting Park (TB: Taman Buru) Protection Forest (Hutan Lindung) Production forest (Hutan produksi) Permanent production forest (HP: Hutan Produksi Tetap) Limited production forest (HPT: Hutan Produksi Terbatas) Convertible production forest (Hutan Produksi yang dapat dikonversi) 91

117 Fig. 4-1 Geographical relation between prospects and the conservation forest in Huu Daha and Wai Sano Fig. 4-2 Geographical relation between prospects and the conservation forest in Ulumbu and Bena-Mataloko 92

118 Fig. 4-3 Geographical relation between prospects and the conservation forest in Sokoria-Mutubusa and Oka-Larantuka Fig. 4-4 Geographical relation between prospects and the conservation forest in Ili Labaleken and Atadei 93

119 Fig. 4-5 Geographical relation between prospects and the conservation forest in Tonga Wayana and Tulehu Fig. 4-6 Geographical relation between prospects and the conservation forest in Jailolo 94

120

121 Chapter 5 Implementation Plan 5.1 Project Composition The diesel power of 89MW, which is base load in the eastern Indonesia, is possible to be substituted geothermal power. In Geothermal Master Plan Study by JICA, exploitable resource potential of 650 MW in total in the eastern provinces was reported based on the existing resource data. On the other hand, Ministry of Energy, Mineral and Resources (MEMR), estimated the potential of the geothermal resources as same as 1914MW in the eastern provinces. Since urgent commencement of geothermal power development in the eastern Indonesia is considered to be necessary and pilot project of geothermal power development should be started as soon as possible, because of inflationary cost rise of fossil fuel for the diesel power generation, small scale geothermal power plant of 35MW in total is proposed to MEMR as appropriate project scale and period. Considering commencement of operation of geothermal power plants as soon as possible, the support by ODA Yen Loan is considered to be sufficient for construction of 35 MW geothermal power plants as pilot projects. Based on the discussion among the MEMR, Ministry of Finance and National Development Planning Agency (BAPPENAS), the procedure for registration of Blue Book will be started by MEMR as a project of PT. PLN. The Eastern Indonesia Geothermal Development Project will be divided into three stages, and the stages will consist of the following eight major components, which are shown in Fig Surface Survey Stage Selecting Geothermal Prospect Surface Resource Survey Drilling Survey Stage Exploration Well Drilling Geothermal Reservoir Simulation Conceptual Design for Geothermal Power Plant Application Study of CDM Plant Construction Small Scale Power Plant Construction Transmission/ Distribution Line Construction 95

122 THE PROJECT Selecting Geothermal Prospect Surface Survey Surface Study Geology, Geochemistry, Geophysics Estimating Resource Distribution Exploration Well Drilling Confirming Resource Slim Hole Drilling, Well Logging, Production Geothermal Reservoir Simulation Evaluating Resource Potential 3D Geothermal Model, History Matching, Prediction Conceptual Design for GPP, CDM Drilling Survey (Tendering Prospect) Plant Construction Small-Scale GPP Construction Back-Pressure Turbine, Geothermal Binary System Geothermal Power Plant Operating Fig. 5-1 Development Flowchart 96

123 5.1.1 Selecting Geothermal Prospect (Preparion of the Project) Based on information such as location of diesel power plant and transmission/ distribution line, consumer power demand, potential and characteristics geothermal prospect adequate areas of geothermal power development will be selected for diesel power substitution. In this study, the selection of fields is included in the main development project. However, this work should be preferably conducted before starting the project by preliminary surface studies (geology and geochemistry). These studied can be entrusted to consulting firm of geothermal development. However, if possible, these studies are desired to be conducted as preparation study by support from Japan, as described later Surface Resource Survey Surface resource survey such as geology, geochemistry and geophysics will be carried out at selected geothermal prospects for the purpose of confirmation of resource existence, delineation of the geothermal reservoirs and decision of exploration drilling targets. Following resource studies should be conducted in the project for securing geothermal steam. In the previous resource study, existing geological data of the surveyed area and vicinities are insufficient to quantitatively evaluate the geothermal potential. During the field survey, documentation of the frequency, size, and orientation of the fractures and faults will be conducted. Identification and location of the volcanic rock units in the area will be done and geological mapping will be carried out. In the map, relation between rock units and structure elements of the geology will be written down. Understanding the geological evolution of the geothermal area, a relation between fault movement and geothermal activity, and formation mechanism from the above data can suggest where subsurface heat sources and permeable zones may be found. Furthermore mapping of hydrothermal alteration zone can be identified a relation between fracture-controlled permeability and fluid flow. In the field samples of rocks and minerals will be collected. And petrological analysis, X-ray analysis, age dating and crystal morphology analysis, fission Track (FT) dating, and Thermo-Luminescence (TL) dating on the rocks and minerals will be done. Integration of the results of X-ray analysis and a distribution of the alteration zones will be carried out. All of the above data will suggest that thermal structure and fluid characteristics in geothermal system. Based on history of the volcanism and alteration age, the history of geothermal activity can be constructed, and thus the relation between the geothermal system and its history will be disclosed. All the information will be integrated to formulate the conceptual model of the geothermal system. Geochemical survey will be carried out to obtain information about the geothermal fluid in the survey area for selecting the sites of exploration well drilling and for planning the geothermal power development. In order to ascertain the geochemical model constructed by 97

124 the existing geochemical data, supplemental sampling and analysis of hot spring waters and fumarole gases and review of the existing geochemical information will be carried out. Geothermal fluid (hot spring waters, surface waters, and fumarolic and/or bubbling gases) sampling and analysis will be carried out in and around the survey area to obtain chemical component data and isotope data. The data obtained in the survey will be analyzed and interpreted concerning origin, heating mechanism, subsurface temperature, etc. Furthermore, mixing and flow pattern of the thermal fluid system in the survey area will be revealed with constructing the geochemical model. Magneto-telluric (MT) survey will be carried out as geophysics with a dense number of stations is to disclose the subsurface resistivity distribution that consolidated to the results of other surface surveys would permit the delineation of promising drilling targets. The resistivity distribution is very useful in precisely delineating the location of fracture systems. It is estimated that beneath the area to be explored with this method, therefore it is highly expected that the results of this survey will be decisive to define the drilling targets. After conducting all surface resource studies, data collected from these studies will be summarized in the database. An Integrated analysis will be carried out using the database for preparing the geothermal conceptual model. These studies can be entrusted to consulting firm of geothermal development Exploration Well Drilling Based on the results of surface survey, twenty-eight exploratory wells will be drilled at prospects in the eastern Indonesia. The wells, which will be succeeded steam production, will be used as production wells. Moreover, seven reinjection wells will be drilled and condensed water will be injected into these wells. Well drilling will be undertaken by drilling company (or the government institute; Center for Geological resources, Geological Agency). Some material and equipment for drilling will need to be procured through international bidding. Grading of access road, construction of new access road, water supply system, site preparation and preparation of storage area in front of base camp, which will be required for well drilling, will be prepared by contractors for civil works. A geothermal fluid transportation system (FCRS) consists of steam pipeline from the production wells to the power plant, pipeline for carrying wastewater from the power plant to the reinjection wells, and ancillaries including valves and the instrumentation & control system. The planning and design of the geothermal fluid transportation system will be undertaken by the consultant on the basis of close technical discussions with PT. PLN. Supply and installation will be done by a contractor under supervision of PT. PLN and the consultant. 98

125 5.1.4 Geothermal Reservoir Simulation Once the results of drilling, well geochemical survey and those of the surface exploration have been consolidated into a conceptual model, the evaluation of the geothermal potential can be conducted through the application of numerical modeling techniques. The ultimate objective will be to determine the sustainable maximum potential of the reservoir and the most adequate scheme to exploit this resource. This survey can be entrusted to geothermal consulting firm Conceptual Design for Geothermal Power Plant, CDM Based on the geothermal resource evaluation carried out before plant construction stage, the optimum development plan of available power output will be formulated. This plan will be formulated upon thoroughly studying the characteristics of geothermal wells (steam flow, wellhead pressure, steam-hot water ratio (enthalpy), non-condensable gas, chemical composition of well discharge, etc.), turbine type, demand and supply balance in the objective power supply area. Since even at this moment, the power demand has been increasing annually at 8%, the demand situation will become tighter when the project is executed. Taking this into consideration, power demand forecast, development effect, economy to formulate the geothermal development scale, development schedule, power generation capacity (unit capacity and total output), generation type and method will be focused in the project. The power output shall be determined in well coordination with the existing power facilities (diesel power, etc.). The design of geothermal power plants can be entrusted to geothermal consulting firm. As results of study on well characteristics, the unit capacity and total output shall be determined so that objective plant will not give adverse environmental effect to the surrounding areas Application Study of CDM Substitution diesel power by geothermal power is very auspicious as the CDM project. The effect of GHG (Green House Gas) emission reduction is 0.8(t-CO 2 /MWh) in case of the generation capacity bigger than 200kW. Based on the results of geothermal reservoir simulation and conceptual design of geothermal power plant, the GHG emission reduction will be estimated and the procedure for registration of CDM project will be started Small Scale Power Plant Construction Small scale power plants of 35MW in total will be constructed after the resource survey and the well drilling. In order to shorten the construction period, the power plant will be 99

126 constructed on "single package full-turnkey" basis in which a sole contractor will undertake engineering, procurements, supply, installation, test and commissioning. The power plant construction stage will include steam piping, installation of mist separator, steam turbine, hot-well pumps, generator, main transformer, electrical equipment, instrument and control equipment, communication facilities, ancillary equipment, administration building and warehouse, and related civil and architectural works Small Geothermal Power System (1) Type of Geothermal Turbine-Generator Flash steam system and binary cycle system are commonly used for small geothermal power plants. Dry steam systems are unlikely to be used in small geothermal plants because dry steam resources are thought to be very rare. The advantages of flash steam systems in small applications include the relative simplicity and low cost of the plant in contrast to binary plants, because of no secondary working fluid. Recent installation of binary cycle systems as small geothermal power system seems to be stronger in number, compared with the flash steam systems, because the binary system can be applied to utilization of geothermal fluid of relatively low temperature. If vapor dominated type fluid is obtained by tapping geothermal reservoir by production wells, dry steam systems should be applied in consideration of cost and reliability of the plant. Since mechanism of the dry steam plant is very simple, its reliability and economy are favorable in power plant construction and operation. Because corrosive chemical components are contained in the geothermal fluid, it is necessary to select material of geothermal turbine-generator carefully. The special technique and the know-how are necessary for manufactures of geothermal turbine-generator. Since operators, who do not have enough expertise in geothermal power generation, probably operate the geothermal power plants in the remote areas as off-grid power plants, stable and trouble-free power plants should be installed. The type of the turbine generator will be decided considering the characteristic of the geothermal resource. Basically, it is assumed that the flash steam system or binary cycle system is introduced and the construction plan is prepared based on the installation of these plants. (2) Advantages of Small Geothermal Power Plants The advantages of the small power plants were summarized by Vimmersted (1998). For understanding advantages of small geothermal development, this descriptions are introduced 100

127 as follows. The advantages are considered to be the projects in the Eastern Indonesia. ( The plants are small and very transportable. The plants can be built on a single skid that fits in a standard trans-ocean container. Binary power plants can accommodate a wide range of geothermal reservoir temperatures, 212 to 300 o F (100 to 150 o C). Above 300 o F (150 o C) flashed- steam plants usually prove less expensive than binary plants. The demand for electric capacity per person at off-grid sites will range from 0.2 kw to 1.0 kw. The design of the power plants and their interactions with the wells includes provisions for handling fluctuating loads, including low-instantaneous loads ranging from 0 to 25 percent of the installed capacity. Power plant designs emphasize a high degree of computer-based automation, including self starting. Only semi-skilled labor is needed to monitor plant operation, on a part-time basis. Complete unattended operation might also be possible, with plant performance monitored and controlled remotely through a satellite link. The system releases no greenhouse gases to the atmosphere. There may be very small leakages of the binary-cycle working fluids, but these do not contain chlorine or fluorine and are non-greenhouse gases. All wells could be drilled by truck-mounted rigs, either heavy-duty water-well rigs or light-duty oil/gas-well rigs. At very remote sites, both drilling rig and power system equipment can be transported by helicopter. Injection well costs can be relatively low. For small systems, because the geothermal flow rates are relatively small, rarely will there be a need to inject the fluid back into the production reservoir. Any shallow aquifer not used for drinking water could be used for reinjection. If the fluids are clean enough to be disposed of on the surface, then the disposal costs can be quite low. Field piping costs are low. All wellheads are located near the power plant module. Inexpensive plastic or carbon steel pipe is used to connect wells. Geothermal direct-heat applications can be attached to these electric systems inexpensively. Applications needing temperatures not higher than 150 F (65 C) might be attached (cascaded) in series to the power-plant fluid outlet line. Critical backup need is estimated to range from one to five percent of the installed geothermal capacity. The very high availability factors for geothermal systems, on the order of 98 percent, substantially reduce the cost of special features needed to ensure that power is always available. Small critical loads such as medical refrigeration or pumps for drinking water could be supported against brief unscheduled outages by a diesel engine or by small amounts of battery storage. (3) Example of Small Geothermal Power Plants Although the small size geothermal power plants are not so popular, compared to large size 101

128 geothermal power plants, small geothermal turbine-generators are provided by some manufacturers of Japan, the United States etc. In some geothermal fields, turbine generators, which were made in China, were installed. BPPT is developing small size geothermal power plants for domestic production. However, it is advisable that reliable and well-established turbine generators provided by prestigious manufacturers should be introduced into relatively large scale power plants such as 3-5MW. Geothermal turbine-generators used at various geothermal power stations in Japan are introduced as follows for the purpose of reference. (a) Suginoi Hotel flash steam unit (condensing), Beppu, Kyushu, Japan The plant of 3MW was installed in The steam and water (143 C) from geothermal wells of about 400 meters depth are used for power generation and the waste fluid is supplied to the hotel for space heating and baths. Recently the turbine generator was exchanged for the new model of high efficiency. The power output of the new generator is 1.9 MW and was furnished by Fuji Electric Co., Ltd. of Japan. Power facilities are shown in Fig Powerhouse Generator Turbine Control panel Fig. 5-2 Photographs of Suginoi Hotel flash steam unit 102

129 (b) Kirishima International Hotel flash steam unit (back pressure) and binary unit, Kagoshima, Kyushu, Japan The plant was installed in The unit was 100-kW non-condensing flash unit. Simplicity of maintenance of the turbine was one of reasons to be selected the non-condensing unit. Steam of 6 tons/hour from two wells runs through a separator, and an inlet temperature is 127 C at 2.45 bars. Hot water from the separator is used for outdoor bathing, space heating and cooling, hot-water supply, heating of a sauna bath and for two indoor baths. The electricity from the unit is used for the base load in the hotel such as sewage water treatment, lighting in the hallway and lounge, kitchen refrigerators, and provides 30 to 60% of the hotel load according to the season and time of day. The unit was furnished by Fuji Electric Co., Ltd. of Japan. Recently new binary turbine generator of maximum capacity of 220kW was installed at the hotel. Power generation is carried out using steam from geothermal wells of meters depth. (c) Kokonoe Kanko Hotel flash steam unit (condensing), Oita, Kyushu, Japan The plant was installed in The condensing unit of 2MW was installed at this hotel and dry steam form geothermal wells are used for power generation. The steam temperature at the turbine inlet is 133 C at 3.0 bars. The turbine exhaust pressure is 0.21 bars. The steam flow supplied from two small production wells is 23 tons/h with 2.0% by weight of non-condensable gas. (d) Hachijojima Island flash steam unit (condensing), Tokyo, Japan The plant was complete in early Hachijojima is a remote island with power supplied from several diesel power plants. The unit has a gross output of 3,300 kw and parasitic load of 9% of the gross output with the non-condensable gas abatement system in operation, and 7% with the abatement system shut down. It is expected that the fuel transportation cost will be drastically reduced once the plant has been in operation. The plant was supplied by Fuji Electric Co. Ltd., The steam temperature at the turbine inlet is 170 C at 8.2 bar. The flow rate is 30 tons/h with 1.56% by weight of non-condensable gas. The plant is equipped with a hydrogen sulfide abatement system to comply with the regulation of the Tokyo Metropolitan Government which prescribes the concentration of 0.1 ppm, in this case at the cooling tower cell. In Indonesia, the small power plant were installed in Indonesia is introduced as follows (John W. Lund, Tonya "Toni" Boyd Geo-Heat Center 103

130 egec-geothernet /prof/small_geothermal_power.htm) (e) Geothermal Power Monobloks, Indonesia The plant was installed in 1978 and Two skid-mounted General Electric turbine generator modules have been utilized in Indonesia supplied by Geothermal Power Company of Elmira, New York. The first, a 250-kWe unit, was installed at Kamojang in West Java. The second, a 2.0-MWe unit, was installed at Dieng, Central Java and in This monoblok weighting 30 tons was then moved by PT. PERTAMINA of Indonesia to the Sibayak geothermal site in North Sumatra, where it was installed as the first geothermal power plant on that island. These units were non-condensing, skid mounted steam turbine and generator with switch gear and control system all mounted in one package. The skid mounted package has a stainless steel outer covering for protection from corrosion due to the H2S gas in the steam. (f) Representative Layout of Geothermal Power Unite of 5MW (Back Pressure) The layout of the geothermal power station of 5.5MW provided Japanese Plant Manufacturer is shown in Fig

131 Fig. 5-3 Layout of Back Pressure Turbine Generator Set (5.5 MW) Transmission/ Distribution Line Construction The transmission line and substation system will include transmission line from main transformer to a substation, circuit breakers, disconnecting switches, bus, CT, VT, arrestor, supporting structure, insulators, protective relay board and ancillaries. PT. PLN will be the project implementation body for this system, and a consultant will assist PT. PLN in planning, design, procurement, contracting, and supervision of contractor s works. In order to shorten the construction period, the transmission line and substation system will be procured on "single package full-turnkey" basis, and a sole contractor will undertake engineering, procurements, supply, installation, test and commissioning. 105

132 The switchyard needs to include two feeders: one for a generator and one for transmission line, with single bus bar because of one unit operation. Voltage transformers and current transformers for metering are to be installed near the high voltage side terminals of generator step-up transformers, in conformity to the rule currently applied to the other power plant. 5.2 Consultant Service The Project Executing Agency, PT. PLN, will employ a consulting firm that has sufficient experience in all the stages for geothermal resource development and constructing of geothermal power plant, transmission line, substation, and distribution lines. For each stage works, the consultant will assist PT. PLN in planning, design, preparation of bid documents, bidding, bid evaluation, contracting, drawing review, construction supervision, and commissioning. The consultant will also undertake study/analysis and preparation of recommended plan for optimum utilization of the geothermal resource in prospects. The consultant will be selected through competitive bidding by nominated firms. 5.3 Project Implementation Organization Project Implementation Bodies PT. PLN will be the executing agency of this project because of the following background. This project promotes the efficiency and diversification of power supply in the eastern provinces which is the remote and isolated islands, and this project is the small scale geothermal power project utilizing renewable geothermal energy. PT. PLN will undertake the once-through power development, i.e. the whole scope of the project from the geothermal resource development to the power generation, transmission and distribution. PT. PLN is responsible for power supply in Indonesia, and PT. PLN has ample experiences in implementation of the construction projects of the geothermal power plants, the transmission lines, substations, and distribution lines. PT. PLN will assign their geothermal specialists as the key person for implementation of the drilling of exploration wells which supply geothermal steam to the power plant. The typical schemes of the Indonesia geothermal power development are illustrated in the following chart (Fig. 5-4). Transmission and distribution system will be handled by PT. PLN. Private company can handle freely geothermal power project, which includes UPSTERAM and DOWNSTREAM. Therefore, PT. PLN can select the project scheme, which contains both UPSTREAM and DOWNSTREAM or one of these. Based on the consultation of MEMR and PT. PLN, the case of Type-A is studied in this report. 106

133 TYPE -A UPSTREA M Steam Field Developme nt and Operation TOTAL PROJECT DOWNSTREA M Power Plant Construction and Operation ESC PERTAMINA or Private Companies Electricity STEA ELEC. ELEC. Transmission and Distribution PLN Consumer s TYPE -B UPSTREA M Steam Field Developme nt and Operation PERTAMIN A or Private Companies SSC DOWNSTREA M Power Plant Construction and Operation PLN or Private Companies ESC Electricity Transmission and Distribution STEA ELEC. ELEC. PLN Consumer s SSC:Steam Supply Contract ESC:Energy Sales Contract Fig. 5-4 Typical Schemes of Geothermal Power Development in Indonesia 107

134 5.3.2 Project Organization The project executing agency, PLN will establish the project implementation organization as described in the Fig PT. PLN will employ a consultant to assist resource study and development, and power plant construction. Namely, the consultant will conduct geoscientific survey and exploratory well drilling using drilling contractors and assist bid document preparation, bid evaluation, contracting, design review, supervision of construction, and commissioning in line with rules and guidelines of the Indonesia Government, PT. PLN own and, JBIC. The resource development including well drilling is the most important works in the geothermal power development. The consultant will conduct them responsibly and also conduct supervision of the power plant construction works. The Project shall be consistent with the development programs of the central government and the local government. PT. PLN head office shall communicate and coordinate with the central government BAPPENAS and Ministry of Energy and Mineral Resources, and in the local, the PLN project office with the local governments. Borrower: Government of Indonesia MOF Loan Agreement Financial Agency: JBIC Sub-Loan Agreement Project Executing Agency: PT. PLN (Persero) Consultant Well Drilling Contractor Power Plant Contractor Transmission/ Distribution Line & Substation Contractor Fig. 5-5 Project Organization 108

135 5.4 Development Schedule A tentative project implementation schedule is shown in Fig It is considered to take 81 months after commencement of the project (Loan Agreement Effectiveness) until the commercial operation start of the last geothermal power plant of the project. If this project starts in November 2008, the project completion will be in July Surface Survey Bidding for deciding consultant for conducting the surface resource survey and the construction works will be conducting during 8 months from the November 2008, contracting will be executed in the June 2009, and surface survey will be executed during 37 months after the August Drilling Survey Bidding for the drilling will be started in the July 2009, contracting will be executed in the July 2010, and drilling works will be executed in 41 months after the August Plant Construction Bidding for plant construction will be started in the November 2010, contracting will be executed in the October 2011, and plant construction works will be executed in 45 months after the November months warranty period is included for each power plant after commissioning. Year Loan Agreement JBIC appraisal L/A 0 Overall Schedule 81 months 0.1 Advanced work (selecting the prospects) (8) months 1 Procurement 18 months Consultant Drilling Contractor Plant T/L Contractor 2 Surface Survey 37 months Surface Survey 3 Drilling Suvey 41 months Drilling Survey 4 Plant Construction 45 months Plant and Transmission Line Construction Fig. 5-6 Project Schedule (Tentative) 109

136 5.5 Operation and Maintenance Organization for operation and maintenance of steam supply system and power plant system is planned as mentioned below Steam Supply System PT. PLN owns and operates steam supply system (production wells, reinjection wells, and geothermal fluid transportation system). PT. PLN has experience and established operational organization for operation and maintenance of steam supply system Geothermal Power Plant Based on ample experience of O&M at other geothermal power plants O&M, PT. PLN will establish the O&M organization for small scale geothermal power development project. PT. PLN will carry out O&M after completion and handover of the project Transmission/Distribution Line Since the dedicated transmission and distribution lines for the existing units and the substation have been operated and maintained by PT. PLN, operation and maintenance of new transmission and distribution lines will be operated and maintained by PT. PLN as well. For facilitate operation of power plant especially for synchronization of generator to the grid, circuit breakers of step-up transformer operation authority should only be given to power plant operator. 5.6 Project Cost Estimate Table 5-1 shows project cost estimation. Table 5-1 Contents of Project Cost Foreign Local Total Million Million Million USD USD USD 1 Steam Field Development Power Plant Transmission Line Physical Contingency Consultant Fee Administration Cost IDC TOTAL

137 Due to the recent inflationary cost of raw materials in the world and difficulty to secure those materials in a certain period, the figures shown here would be reviewed and changeable at the time of project implementation. 5.7 Financial Arrangement Plan PT. PLN is responsible for procuring the financial resources needed for the implementation of the project Finance of the Project It is assumed that JBIC will participate as financier under the Yen Loan scheme, which can apply for the facility provided by Japanese supplier. Interest of the Yen Loan will be determined by CIRR (Commercial Interest Reference Rate) and a country risk premium at making a loan agreement. The assumption also includes the participation of other banks. Table 5-2 shows terms and conditions of JBIC Yen Loan and the other bank or reference only. Table 5-2 Terms and Conditions of Loans Financing Condition JBIC ODA Commercial Yen Loan Bank Interest Rate 0.65% 12.00% Grace Period(year) 10 0 Repayment(year) 30 6 *) These values of interest were derived from a trial calculation by West JEC. 111

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139 Chapter 6 Economic Assessment 6.1 Economic Evaluation Methodology The economic viability of the eastern Indonesia geothermal development project is evaluated by an economic internal rate of return (EIRR) method. An alternative power project that is capable to give the same services (salable energy) is assumed, and net present value of costs for the Project and the alternative are compared for the project life in order to obtain EIRR. The obtained EIRR is compared with the hurdle rate (12 %) to evaluate the economic viability of the project. Besides, sensitivity of the EIRR value to some important parameters is tested to check economic vulnerabilities of the project Alternative (1) Selection of alternative As an alternative power source, a diesel power plant is selected in consideration of power sources in the eastern provinces (2) Operating conditions and cost Operating conditions and costs of the alternative project are as follows. Power plant : Diesel power plant Operating condition : Base load Unit capacity : 35 MW No. of unit : 1 House service load : 7% Transmission and distribution loss : 8.5% Capacity factor : 85 % Generating Efficiency : 31% Plant life : 30 years Construction cost : 1100 USD/kW O&M cost : 7.5 cent/kwh 112

140 (3) Fuel Fuel data used for the calculation is as follows. Fuel : HSD(High Speed Diesel Oil) Fuel Price : 20.4 cent/liter (4) Construction period and plant life adjustment The construction period of the alternative diesel power plant is assumed 12 months. Since the project duration is 30 years, same as that of the alternative, no adjustment of the investment cost handling becomes necessary Project (1) Steam production facilities To secure operation of 35MW total small scale geothermal power units, 28 production wells will be drilled during the construction period together with geothermal fluid transportation system. It is noted that 14 production wells will be used at the commissioning, based on assumption of success rate 50%. (2) Power plant, transmission lines and substation facilities Unit capacity : 35 MW No. of unit : - House service load : 7 % Capacity factor : 85 % Transmission and distribution loss : 8.5% Capacity factor 85 % Plant life : 30 years Construction cost : 1100 USD/kW O&M cost : 7.5 cent/kwh (3) Project cost Project cost is shown in Table 5-1. (4) Exchange rates The following exchange rates are used throughout this economic and financial evaluation. 113

141 USD 1 = JPY 120 USD 1 = IDR 9,000 JPY 1 = IDR 75.0 IDR 1 = JPY Conclusions (1) EIRR The calculating processes are shown in Table 6-1. The result of EIRR calculation is as follows. The project could compete with the alternative project as the project EIRR stands at 39.5 % while the hurdle rate is 12 %. The fuel cost will be saved as much as USD million every year, USD 1, million within a period of project life. Diesel power plant (alternative) EIRR : 39.5 % Although initial investment for geothermal power project is much higher than the alternative, the geothermal can generate electric energy without using fuel. This enables to export fuel instead of consuming in the country and to acquire foreign currencies. Since geothermal energy is renewable and emit almost zero CO 2 gas, this Project will be of benefit to the country and worth to pursue. As this economic evaluation does not include the CDM credit, the economic viability will be further more increase if the CDM credit transaction could be achieved. (2) Sensitivity of EIRR (a) Capacity factor of geothermal power plant Geothermal power plant is usually operated as base load plant and the capacity factor is assumed to be 85 % in this evaluation. However, it is possible to mark more than 85 % capacity factor if the Project is well engineered and prepares sufficient spare parts to shorten the annual maintenance period. In this case, EIRR will go up more as shown in Fig Even if the capacity factor goes down to 30 %, EIRR will be still higher than 12 %. (b) Investment It is specialty of the geothermal project that the initial investment becomes relatively high, both resource development and power plant facilities. If the investment can be reduced, 114

142 EIRR will go up. However, if the project cost is increased by 300%, EIRR will be lower than the hurdle rate of 12% (Fig. 6-2). (c) Fuel price The change of fuel price for alternative thermal power plant also gives influence on the Project EIRR. However, even if the fuel price should drop 0.2 US$/liter, EIRR will be still higher than the hurdle rate of 12% as shown in Fig The Project should be considered favorable from the standpoint of the national economy, i.e. to acquire foreign currency by export of fossil fuel. Capacity EIRR Factor 20% 8.5% 30% 13.7% 40% 18.5% 50% 23.2% 60% 27.9% 70% 32.5% 80% 37.2% EIRR 50% 40% 30% 20% 10% 0% 20% 30% 40% 50% 60% 70% 80% Capacity Factor Fig. 6-1 EIRR Sensitivity to Capacity Factor Project EIRR Cost 100% 39.5% 125% 29.7% 150% 23.8% 175% 19.8% 200% 16.9% 250% 12.9% 300% 10.3% EIRR 50% 40% 30% 20% 10% 0% 100% 150% 200% 250% 300% Project Cost Change Fig. 6-2 EIRR Sensitivity to Project Cost 115

143 Fuel Price EIRR ($/ton) % % % % % % EIRR 50% 40% 30% 20% 10% 0% Fuel Price ($/ton) Fig. 6-3 EIRR Sensitivity to Fuel Cost Table 6-1 Economic Internal Rate of Return Model: Eastern Indonesia 35MW Total GPP EIRR = 39.53% PROJECT ALTERNATIVE : [Diesel Power Plant] Year Project Capacity Capacity Annual Supple. Alt. Total Salable Drilling Project Capacity Capacity Annual Fuel Cost Efficiency Consump. Cost Cost Balance Fuel O&M Total Cost Salable (Fuel Cost Factor O&M Cost Cost Factor Energy Cost Cost Energy Save) MM$ MW % GWh MM$ MM$ MM$ MM$ MW % GWh % Mil. Kg MM$ MM$ MM$ MM$ , , , , , ,

144 6.2 Financial Evaluation Methodology A financial internal rate of return (FIRR) method will be applied: an internal rate of return to equalize the cost (investment and operating costs) and revenue by sales of energy generated for the project life will be calculated. The obtained rate will be compared with the opportunity cost of capital Project Income Cash Flow (1) Fund procurement The currency portion of 85% of the project will be procured from the Yen Loan extended by JBIC with the following terms and conditions. The other currency portion will be prepared by the project implementation body at an interest of %. Interest : 0.65 % Repayment : 40 years Grace period : 10 years (2) Opportunity cost of capital The opportunity cost of capital of this project will be a weighted average cost of capital (WACC) between foreign and local costs. WACC for this project is as follows. Project WACC 2.35 % (3) Electricity tariff The electricity tariff is calculated 14 cent/kwh under the condition of the target FIRR 12% for PT. PLN (government) project Project Outgoing Cash Flow (1) Disbursement schedule Project cost is assumed to be disbursed in a year. 117

145 (2) Operation and maintenance cost The operation and maintenance cost is assumed at 2.22 million USD annually (1 cent/kwh) Conclusions (1) FIRR The FIRR value registered % as shown in Table 6-2. As this value exceeds the WACC at 2.35 %, the Project becomes financially feasible with the conditions assumed at present. Table 6-3 to Table 6-4 shows Repayment schedule and Cash flow statement, respectively. FIRR WACC % 2.35 % (2) Sensitivity of FIRR (a) Capacity factor of geothermal power plant The lower capacity factor power plant operates at, the less FIRR becomes as shown in Fig In case of capacity factor goes down to 45 %, FIRR registers 6.34 % and which became infeasible. (b) Project cost In case of the project cost becomes 140 % higher, FIRR becomes 8.68 %, which is still feasible. Due to brisk economic activities in Asia, China and India in particular, the market prices of metal and non-metal materials are sharply increasing. The power plant construction cost estimated at the present value may increase and that may adversely affect financial viability (Fig. 6-5). (c) Tariff rate In case of the tariff rate decreases to 7 cent/kwh, the FIRR will be 5.41 %, which becomes infeasible as shown in Fig This financial evaluation, however, does not include the CDM credit transaction, and if the transaction should be included, the project financial viability may offset between tariff rate decrease and inclusion of CDM credit transactions. 118

146 (3) Sensitivity of Tariff Rate Since the obtained tariff rate 14 cent/kwh in case of target FIRR 12 % for government project, but the electricity tariff should be higher for private project. Private company is considered to aim target FIRR 16%. Fig. 6-7 shows the calculation results of tariff rate for government and private project. In case the project execute scheme Case-1, The Government of Indonesia can reduce the maximum reduction effect of subsidy for electricity. Fig. 6-7 shows accumulate balance of project cash flow. In case of the project is implemented by private company as total project (both up-stream and down-stream), private company should finance more than 50 million USD as operating annual working funds. The debt for working funds will be heavy load for private company. Capacity FIRR Factor 40% 5.53% 45% 6.34% 50% 7.11% 55% 7.85% 65% 9.28% 75% 10.64% 85% 11.95% FIRR 16% 12% 8% 4% 0% 40% 50% 60% 70% 80% 90% Capacity Factor Fig. 6-4 FIRR Sensitivity to Capacity Factor Project FIRR Cost 100% 11.95% 120% 10.08% 140% 8.68% 160% 7.58% 180% 6.68% 190% 6.30% 200% 5.94% FIRR 16% 12% 8% 4% 0% 100% 120% 140% 160% 180% 200% Project Cost Change Fig. 6-5 FIRR Sensitivity to Project Cost 119

147 Tariff FIRR ( /kwh) % % % % % % FIRR 16% 12% 8% 4% 0% Electricity Tariff (UScent) Fig. 6-6 FIRR Sensitivity to Tariff Rate Table 6-2 Financial Internal Rate of Return [MM $] Year OUTPUT SALES INVESTMENT REVENUE COSTS NET INCOME TAX NET INCOME CASH FLOW INITIAL No. of MW GWH SALE INV. (w/o IDC) Supplem. SUPPLM. TOTAL TOTAL OPER DEPRE- SUP. WELL TOTAL NET [After Tax] FREE Total Total Wells INVEST. INVEST. REVENUE COST CIATION DEPN. EXPENSES INCOME CASH FLOW [2+3] [6+7+8] [5-9] [10-11] [ ] [GWh] [1.3 M$/well] [14 /kwh] [1.0 /kwh] [ 47% ] , Electricity Price ( /kwh) Escalation 0.00 %/year WACC of Project: 2.35% Project F.I.R.R % 120

148 Table 6-3 Repayment Schedule for Power Plant Project model: Eastern Indonesia 35MW Total GPP LOAN (w/o IDC) Repayment(JBIC)(MM $) Repayment(Local Bank)(MM $) Total (MM$) Year JBIC (MM $) Local Bank (MM $) Total (MM $) Principal Repayment During Construct Interest Repayment Balance Principal Repayment During Construct Interest Repayment Balance Principal Repaymen t During Construct Interest Repayment Balance Table 6-4 Cash Flow Statement Model: Eastern Indonesia 35MW Total GPP [MM $] Cash Inflow Cash Outflow Balance Cash Flow from Operating Activities Depreciation Initial Additional Repayment Per Borrowing Add'nal Year (w/o IDC) EBIT Interest Tax Profit Initial Inv. Inv. Total Investment Investment Capital Total Year Accumulate [ 47% ] [2-3-4] [ ] [ ] [8-12]

149 Up-Stream (Steam Production) Case 1-1 Case1-2 Case2 (Case3) Government PLN Government (Private) Down-Stream PLN PLN Private (Private) (Power Generation) WACC Target FIRR % (16) 600 Accumulate Balance(millionUSD) Case1:G-G(PLN) Case2:G-P Case3:P-P Year 200 Accumulate Balance(millionUSD) Case1:G-G(PLN) Case2:G-P Case3:P-P Year Fig. 6-7 Accumulate Balance of cash flow 122

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151 Chapter 7 Preparation of Geothermal Power Development Project 7.1 Necessity of Preparation Study In the project of geothermal power development in the eastern remote islands, Ministry of Energy and Mineral Resource (MEMR) of the Indonesian Government intends to substitute the diesel power generators by the geothermal power turbine-generators. As described previously, power business by the diesel power generation in the rural areas has confronted difficulty in economy due to recent inflationary price of fossil fuel. The Government and PT. PLN have a bigger economic burden for power supply to the rural areas. This geothermal project is strongly expected as a countermeasure against faltering economy of rural power supply business by PT. PLN. In addition, geothermal development is expected to contribute to social development in the rural areas by introducing multipurpose utilization of geothermal energy. Since economy of the diesel power generation has deteriorated day by day, the Government and PT. PLN decided to promote geothermal power development as substitute of the diesel power generation. The first development target was decided to be power plant construction of 35 MW in total in the meeting among MEMR, BAPPENAS, MOF and PT. PLN on 12 March 2008, considering power demand in the eastern area and project support from Japan. If the financial support cannot be obtained from Japan, it is difficult to realize the development project. The support by the Japanese ODA Yen Loan is strongly expected for improvement of the project economy. The project must meet the requirements of the ODA Yen Loan project such as project feasibility including estimation of geothermal resource potential, development program, environmental constraints etc The Government and PT. PLN have studied geothermal power development in the islands and the Japanese Government supported their activity through the research study by NEDO and the feasibility study by JETRO. However, these study projects have concentrated on the Flores Island. The geothermal power plant construction has not been realized even in the Flores Island so far, due to lacking of adequate financial support and development organization. About geothermal areas other than the Flores Island, there is no adequate data for preparation of geothermal power development plans. For realizing the development projects by the Japanese ODA Yen Loan, project feasibility of the geothermal development in each field should be clarified on the basis of data of geothermal resource, future power demand and environmental constraints, before starting the development project. When the geothermal power development including the steam development is planned, geological data and geochemical data for revealing the resource characteristics and 123

152 potentials are generally collected by the surface surveys in consideration of reduction of the project cost and risk. In addition, MT survey as one of geophysical surveys is executed in the field, where the project will be started, and the geothermal structure and the extent of the geothermal reservoir are clarified in this survey. Provided that integrated interpretation on the geothermal resource and structure is conducted, drilling target of the exploratory wells can be decided. Since it takes a considerable amount of time and cost to conduct whole surface surveys, the detailed surface surveys should be conducted in the main project. Since the project contains the entire development plans in various islands, study program and development plan of each field should be prepared based on the geothermal resource data by preliminary geological survey and geochemical survey, and data and information of predicted future power demand and environmental constraints, before starting the main project. Namely, feasibility study report from steam development study to power plant construction of all geothermal fields is required. At present, data and information on the feasibility study of geothermal fields in the eastern area have been partially collected. Since the only geothermal potential and possibility of power development in the listed areas can be understood, the resource data should be collected by the preliminary geological survey and geochemical survey and development program should be prepared. Regarding geothermal power development in the Flores Island, some part of development plan should be modified in accordance with present development policy by PT. PLN. It is thought that a more certain project becomes possible despite of securing steam in resource development study, if these preliminarily resource surveys and project planning are conducted before start of the development project supported by Yen Loan. 7.2 Supplementary Study and Project Planning The Government desires to study development possibility of 37 geothermal fields in the eastern area for substitution of diesel power generation. Present information and data of some fields in the area can be used for judgment of the project feasibility and the project planning, but those of most fields are insufficient. At least, about 20 fields' data should be collected before starting the project. If supporting the project by ODA Yen Loan is supposed, it is desired that the preparation study is conducted using JBIC scheme of SAPPROF (Special Assistance for Project Formation). Necessary supplementary studies are summarized as follows. (1) Study Content; (a) Selection study of development sites Geological survey 124

153 Geochemical survey Geothermal structure modeling and resources potential assessments (power output estimation) Location analysis and environmental study Study for future power demand and substitution of existing power plants by geothermal power plants Development site selection (b) Project Planning Geothermal resource survey and development (steam development and wastewater treatment) (including well drilling) Construction of surface facilities such as power plants, transmission lines etc. (c) Economic and financial evaluation Economic and financial evaluation of project CDM project (2) Study sites; 20 fields in the eastern provinces (3) Study period; 5 months Using collected data during this study and those in other reports, the project feasibility of each field will be judged and detailed program for geothermal power development in each field in the eastern provinces will be prepared. 125

154

155 Chapter 8 Project Potential for CDM 8.1 CO 2 Emission by Power Source The geothermal power generation is considered that the amount of the CO 2 emission at the life cycle is less than that of other power supplies (CRIEPI, 2000). For instance, the coal-fired generation exhausts 65 times CO 2 compared with the geothermal power generation (Fig. 8-1). Moreover, the geothermal power plant generates an electric power that is high utilization rates, bigger than the other renewable energy. Therefore, a big effect of the CO 2 emission reduction can be expected, it is attractive as the CDM project. Coal Thermal Oil Thermal LNG Thermal Power Source LNG Combined Solar Wind Nuclear Geothermal Mini Hydro Facility/Operation Fuel for Power Generation Source: Modify Denchuken News No.338 (CRIEPI,2000) CO 2 Emission Factor (t-co 2 /MWh) Fig. 8-1 CO 2 Emission by Power Source 8.2 CDM Institution in Indonesia After the singing of Kyoto Protocol in 1997, the house of Representative of the Republic Indonesia passed the law on ratification of the Kyoto Protocol on June 28, The secretary of state issued Law No. 17/2004 on July 28, 2004, and Indonesia submitted the Kyoto Protocol ratification instrument to UN on December 3, 2004 and it was authorized at the plenary assembly of UN on March 3, The detail CDM system procedures were 126

156 described in the decree of Minister of Environment No. 206 of 2005 issued on July 21, Approval process by National Commission for Clean Development Mechanism (Designated National Authority: DNA) by decree is given in Fig Project proponent Secretariat receives NC-CDM Internal meeting within 21 days Expert evaluation Within 6 days Technical team evaluation Sectoral working group within 3 months Secretariat receives evaluation Application data requirement NC-CDM Decision meeting Stakeholder forum special meeting Proposal does not meet criteria Document completion Approval letter Fig. 8-2 Project Screening Process by DNA 8.3 Geothermal Project Today, 47 CDM projects have been approved by Indonesian DNA. Regarding adoption of CDM to geothermal power project in Indonesia, Unocal had filed applications with the Dutch Government to adopt CDM to geothermal projects in Sarulla and Wayang-Windu in the past. For the Sarulla project, PT. PLN also participated in the application with Unocal and PT. PERTAMINA. These attempts for CDM realization, 127

157 however, seem to make no progress probably due to the transfer of ownership of the projects. For Darajat-III geothermal project, the Project Design Document (PDD) prepared by Amoseas had been reviewed by the UNFCC panel, but it was failed due to the poor expression and unfamiliarity with CDM documents related barriers and baseline settlement (July 2005; NM0055). However, Chevron-Texaco, the current owner of Darajat project, resubmitted the application. Darajat project have been registered to Executive Board in June 2006 as a first geothermal power project for CDM in Indonesia. PDD of Kamojang geothermal Projects, which is prepared by PT. PLN, have been evaluated by the Technical Committee of DNA CDM Indonesia now. 8.4 Effects of Environmental Improvement It is hardly to grasp the effects of environmental improvement by this project quantitatively. That is to say, hydrogen sulfide, carbon dioxide, and heavy metal components, which have been discharged from fumaroles, pollute the air and water near site at present. It is sure that generation of such contaminants will be suppressed by using geothermal energy, but the quantitative evaluation method of suppress has not yet established. The environmental improving effect of this project is the reduction of carbon dioxide emission from electricity generation using renewable geothermal energy comparing with others fossil firing power generation. The emission reduction is estimated as potential of oil substitution effort of crude oil, based on the amount of total small scale geothermal power generation, which is substituted diesel power. CO 2 Conversion Volume (emission factor) = crude oil conversion of energy substitution (ktoe/y) /12 Where, 1 Energy substitution effect (crude oil conversion ktoe/y) Heating value conversion of crude oil 10,000 kcal/kg Heating value conversion of electricity 2,646 kcal/kwh 2 Conversion to unit of energy (heating unit: TJ) Conversion factor TJ/kt 3 Conversion to base unit of carbon discharge Base unit factor of carbon discharge 20 tc/tj 4 Correction of incomplete combustion portion Oxidation rate factor of carbon Conversion to CO 2 128

158 Molecular weight ratio 44/22 From above formula, CO 2 conversion volume (emission factor) is calculated 0.819(t- CO 2 /MWh). The amount of the emission reductions of each field are presumed from the following formula by the annual power generation assuming the utilization rates of the geothermal plant to be 85%. Annual power generation (MWh/year) = Development resource potential (MW) 24(h/day) 365 (day) utilization rates (%) Annual emission reduction(kt-co2/year) = Emission factor (t-co2/mwh) annual power generation (MWh/year) The effect of annual CO 2 emission reduction of the 10MW geothermal power plant is 61 (kt- CO 2 /year). In case of the 35MW total small scale geothermal plant will be constructed, the effect of the emission reduction of (kt-co 2 /year) is expected. If the value of CER is 10 (US$/t-CO 2 ) under the emission factor 0.8(t-CO 2 /MWh), earning of 0.8(cent/kW) is obtained when the geothermal power generation is executed as CDM business in Indonesia (Fig.8-3). This is one of the incentives of the geothermal power development. 1.8 CER's Unit Price (cent/kwh) (Emission Factor 0.8t-CO2/kWh) CER's Unit Price (US$/t-CO 2 ) Fig. 8-3 CER s Price 129

159 8.5 Small scale geothermal power development as Small Scale CDM Indicative simplified baseline and monitoring methodologies for SSC project activity The small scale geothermal power development activity of SSC is categorized Type-I. Type-I is Renewable energy project activities with a maximum output capacity equivalent to up to 15 MW (or an appropriate equivalent). The small scale geothermal power plant of the project is connected to a grid so that the methodology will be applied for AMS I.D. AMS I.D is used for renewable electricity generation for a grid. Emission reduction factor of AMS I.D, which is different according to the installed capacity and utilization rates, for small scale geothermal power generation bigger than 200kW uses 0.8(t-CO 2 /MWh). In case of the 35MW total small scale geothermal plant will be constructed, the effect of the emission reduction of (kt-co 2 /year) is expected Additionality for SSC project activities Project Participants shall provide an explanation to show that the project activity would not have occurred anyway due to at least one of the following barriers: Investment barrier, Technological barrier, Barrier due to prevailing practice or other barriers Emission from Source Geothermal power generation produces low concentration of CO 2 and CH 4 in NCG (non-condensable gas) with the geothermal vapor. It is necessary to pay attention to the concentration of NCG. Because if the concentration of CO 2 and CH 4 higher, the GHG emission reduction effect become lower (possible to be zero!). Fig. 8-4 shows the relation between CO 2 concentration in steam and CO 2 emission. This figure is drawn under the condition of steam-electricity conversion 7 tone/mwh and emission factor of diesel power is imposed on the figure. When the concentration of CO 2 goes up to 10wt%, the amount of emission reduction goes down to zero. The average CO 2 concentration at the existing geothermal power plant shows around 1wt%, thus the emission reduction effect is expected sufficiently. The concentration of CH 4 should be checked because of which concentration is smaller than 1/100, but the GHG effect is 21 times of CO

160 CO 2 Emission by Steam Production (t-co 2 /MWh) Small Scale Geothermal P/P Emission Factor % 2.0% 4.0% 6.0% 8.0% CO 2 Concentration in Steam (wt%) 10.0% 12.0% Fig. 8-4 CO 2 Emission by Steam Production 8.6 CDM project in a ODA project Immediate cooperation of CDM and ODA granting is prohibited by regulations, but in case of the CDM project selected as ODA project, which ODA granting has negotiated with developing country, in results is excluded. (wind power project in Egypt is approved by EB on June 22nd, 2007 that is supporting by JBIC) 131

161 インドネシア 東 部 地 熱 発 電 計 画 予 備 調 査 和 文 要 約

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163 1. 調 査 の 目 的 本 調 査 の 目 的 は インドネシア 国 東 部 地 域 ( 西 ヌサテンガラ 州 東 ヌサテンガラ 州 マルク 州 及 び 北 マルク 州 )において ディーゼル 発 電 代 替 電 源 としての 地 熱 発 電 開 発 の 可 能 性 を 明 らかにすることである 本 調 査 では ディーゼル 発 電 代 替 事 業 の 実 施 により 地 方 への 安 価 で 安 定 した 電 力 供 給 が 可 能 となるとともに 政 府 の 経 済 的 負 担 の 軽 減 を 図 ることが 可 能 となるように さらに 発 電 に 伴 う 炭 酸 ガス 発 生 量 を 削 減 し 地 球 温 暖 化 防 止 に 貢 献 できるように 開 発 計 画 を 策 定 する 業 務 実 施 にあたっては 現 地 調 査 を 十 分 に 行 い 円 借 款 の 利 用 による 開 発 を 視 野 に 入 れ た 当 地 域 に 適 用 可 能 な 小 規 模 地 熱 発 電 プロジェクトを 提 案 することした 2. 東 部 地 域 における 地 熱 開 発 の 必 要 性 地 熱 発 電 事 業 促 進 の 背 景 インドネシアは 1997 年 のアジア 通 貨 危 機 において ASEAN の 中 で 最 大 の 経 済 的 影 響 を 受 けたが その 後 各 種 改 革 の 実 施 や 内 外 の 投 資 に 支 えられ 経 済 は 大 きく 回 復 し 近 年 の 経 済 は 概 ね 堅 調 に 推 移 している 順 調 な 経 済 発 展 を 受 け 国 内 の 電 力 需 要 も 着 実 に 拡 大 を 続 けている 2006 年 のインドネシア 全 国 の 最 大 需 要 電 力 は 20,354MW( 前 年 比 +5.7%) と 初 めて 20,000MW を 越 え 電 力 需 要 量 も 113,222GWh( 前 年 比 5.1%)を 記 録 している 国 家 電 力 総 合 計 画 (2005 年 )によると 今 後 最 大 電 力 需 要 は 年 平 均 7.5%の 増 加 により 2025 年 には 79,900MW に また 電 力 需 要 量 も 同 じく 7.5%の 増 加 により 2025 年 には 450,000GWh に 達 すると 想 定 されており これに 対 応 する 電 源 設 備 の 整 備 が 喫 緊 の 課 題 と なっている 現 在 ジャワ バリ 系 統 が 国 全 体 の 電 力 需 要 の 77.2%を 占 めているが 今 後 ジャワ バリ 系 統 以 外 の 地 方 部 においても 地 方 電 化 の 推 進 などから 堅 調 な 需 要 の 拡 大 が 予 想 されており 地 方 部 における 電 源 開 発 も 重 要 な 課 題 となっている インドネシア 電 力 セクターの 抱 えるもう 一 つの 課 題 は 電 源 多 様 化 の 推 進 である 国 際 石 油 価 格 の 急 騰 の 中 で 電 源 構 成 の 石 油 依 存 度 を 低 減 させ 安 定 供 給 と 発 電 コストの 低 減 が 急 がれている このため 政 府 は 2002 年 に 国 家 エネルギー 計 画 (National Energy Policy: NEP) を 策 定 し 2020 年 までにエネルギー 利 用 の 5% 以 上 を 再 生 可 能 エネルギー により 供 給 することを 目 標 とした この 中 で 国 内 に 豊 富 に 存 在 する 地 熱 エネルギーに も 再 生 可 能 エネルギーのひとつとして 大 きな 役 割 を 果 たすことが 期 待 された 地 熱 エネルギーは 再 生 可 能 エネルギーの 中 では 既 にその 利 用 技 術 が 確 立 しており 世 界 各 国 で 8,000MW を 越 える 利 用 実 績 がある また 自 然 エネルギーを 利 用 するにもか かわらず 天 候 季 節 変 動 がなく 極 めて 安 定 して 発 電 が 行 える 高 い 供 給 信 頼 性 を 有 する エネルギーである さらに 地 球 環 境 にも 優 しいエネルギー 源 であるとして 昨 今 注 目 を 集 めており その 開 発 はインドネシアにとって 大 きな 意 義 を 有 している インドネシアは 世 界 最 大 の 地 熱 ポテンシャルを 保 有 していると 言 われている 同 国 内 の 地 熱 ポテンシャルは 約 27,000MW 相 当 であり 全 世 界 の 地 熱 ポテンシャルの 40%を 占 め るとの 試 算 も 報 告 されている このため 地 熱 エネルギーの 開 発 は 増 大 する 電 力 需 要 への 対 応 エネルギー 源 の 多 様 化 の 観 点 から 強 く 期 待 されてきた 今 日 インドネシア 国 内 の 地 熱 発 電 は 857MW に 達 している この 発 電 能 力 は 世 界 第 4 位 ではあるものの 膨 大 なポテンシャルを 考 慮 すると この 恵 みを 十 分 活 かしているとは 言 えない 状 態 にある 要 約 -1

164 インドネシア 国 政 府 の 地 熱 発 電 開 発 計 画 インドネシア 政 府 は 積 極 的 な 地 熱 開 発 促 進 を 図 ることとし 2002 年 の 国 家 エネルギ ー 計 画 につづき 2003 年 には 地 熱 法 No27/2003 を 制 定 し 地 熱 開 発 ための 法 制 度 を 明 確 化 している さらに エネルギー 鉱 物 資 源 省 (MEMR)では 国 家 エネルギー 計 画 を 具 体 化 するため 2004 年 地 熱 開 発 Road Map(Road Map Development Planning of Geothermal Energy) を 策 定 し 2020 年 に 6,000MW 2025 年 には 9,500MW の 地 熱 発 電 を 行 う 高 い 開 発 目 標 を 設 定 した このように 同 国 の 地 熱 開 発 は 新 たな 開 発 推 進 の 枠 組 み が 整 備 され 積 極 的 な 開 発 に 向 けてそのスタートが 切 られた 2007 年 9 月 にまとめられた JICA による インドネシア 国 地 熱 発 電 開 発 マスタープラ ン 調 査 においては 全 国 73 箇 所 の 地 熱 地 域 の 評 価 が 行 われ 有 望 地 域 の 評 価 結 果 は 分 類 され 各 地 域 に 適 した 開 発 や 支 援 の 方 法 が 提 案 された この 分 類 では(i) 最 も 有 望 性 の 高 い 地 域 (ランクA 地 域 )においては PERTAMINA GE( 国 営 石 油 会 社 地 熱 エネルギー 部 門 )に 対 する 円 借 款 等 の ODA 資 金 の 供 与 や 民 間 企 業 に 対 する 買 電 価 格 の 引 き 上 げ 等 の 経 済 インセンティブの 賦 与 等 により 開 発 の 促 進 を 図 ること (ii) 有 望 性 は 高 いもの 調 査 井 による 資 源 確 認 が 行 われていない 地 域 (ランク B C 地 域 )に 対 しては 民 間 企 業 の 参 入 促 進 のため 国 による 調 査 井 掘 削 を 含 む 調 査 の 実 施 (iii)その 他 の 東 部 地 域 をはじめとする 離 島 等 の 遠 隔 地 においては 民 間 事 業 者 の 参 入 は 期 待 できないため 政 府 が 主 体 となって 開 発 を 行 うことなどが 提 案 されている 本 調 査 の 対 象 とした 東 部 地 域 をはじめとする 遠 隔 離 島 における 地 熱 開 発 の 進 め 方 とし ては この 調 査 では 次 のように 提 言 されている 遠 隔 離 島 における 地 熱 開 発 は 他 の 発 電 方 式 であっても 規 模 の 経 済 性 が 得 られないた め 地 熱 発 電 が 経 済 的 には 最 も 有 利 な 発 電 形 態 と 考 えられる 内 燃 力 燃 料 費 の 低 減 等 の ために 積 極 的 な 開 発 が 期 待 されている しかしながら 開 発 規 模 が 小 さい 上 遠 隔 離 島 という 地 理 的 な 問 題 から 民 間 事 業 者 の 参 入 は 期 待 できない 可 能 性 が 高 い このため このような 地 域 の 地 熱 資 源 は 政 府 が 主 体 となって 開 発 を 行 う 必 要 がある 政 府 が 調 査 井 掘 削 を 伴 う 促 進 調 査 を 実 施 し その 成 果 ( 蒸 気 噴 出 に 成 功 した 調 査 井 など)を PLN( 国 営 電 力 会 社 )や 州 政 府 系 企 業 に 引 き 継 がせ 地 方 電 化 用 の 小 規 模 発 電 所 を 建 設 させることが 望 まれる 本 調 査 では 上 記 の 提 言 を 受 け インドネシア 東 部 地 域 の 遠 隔 離 島 における 地 熱 開 発 を 政 府 が 中 心 となり 推 進 する 方 策 を 調 査 検 討 した 資 金 調 達 としては 円 借 款 が 事 業 の 性 格 から 考 えて 最 も 適 切 と 考 えられた 東 部 地 域 の 地 熱 発 電 開 発 は 地 熱 開 発 マスタープランでは 2015 年 までに 186MW の 発 電 所 建 設 を 行 うことで 計 画 されている しかし 最 近 の 原 油 高 騰 に 伴 うディーゼル 燃 料 確 保 のための 政 府 PLN の 過 大 な 経 済 的 負 担 を 軽 減 するために 早 期 に 地 熱 開 発 を 進 め ることが 必 要 と 大 臣 を 含 めエネルギー 鉱 物 資 源 省 (MEMR)では 考 えている MEMR PLN BAPPENAS MOF( 財 務 省 ) 等 との 打 合 せ(2008 年 3 月 )により 2016 年 頃 までの 事 業 の 実 現 及 び 円 借 款 による 資 金 的 支 援 の 一 般 的 規 模 等 を 考 慮 して ディーゼル 代 替 で 利 用 す る 場 合 にベースロードで 必 要 な 電 力 の 約 30%を 賄 える 地 熱 発 電 事 業 (35MW 分 ; 約 5MW 発 電 所 7 機 )を パイロット 的 に 円 借 款 事 業 で 行 うことで 事 業 計 画 を 作 成 することとなっ た 要 約 -2

165 東 部 地 地 域 の 一 般 事 情 及 び 電 力 事 情 本 調 査 の 対 象 地 域 である マルク 州 北 マルク 州 西 ヌサテンガラ 州 東 ヌサテンガ ラ 州 の 面 積 はインドネシア 全 土 の 8.2%を 占 める 153,157km 2 となる 2005 年 の 人 口 推 計 によると 当 該 4 州 の 人 口 は 10,639 千 人 であり インドネシア 全 体 の 4.9%を 占 めてい る 当 該 4 州 の 州 GDP は 2004 年 の 時 価 で 合 計 41,949 billion Rp であり インドネシア 全 体 の 1.8%である 東 部 地 域 の 2006 年 の 最 大 電 力 は 270MW であった これはインドネシア 全 体 の 1.3%に あたる これに 対 し 同 地 域 の 発 電 設 備 量 は 469MW である また 2006 年 の 発 電 電 力 量 は 1,273GWh であり インドネシア 全 体 の 1.2%となっている なお 当 該 地 域 の 電 化 率 は マルク 諸 島 51.6% 西 ヌサテンガラ 州 28.8% 東 ヌサテンガラ 州 21.8%であり 全 国 平 均 に 比 して 低 いものとなっている 今 後 の 電 力 需 要 は 年 平 均 7.4%の 増 加 があると 想 定 され ており 最 大 電 力 は 2025 年 には 1,065MW に 達 するとみられている 必 要 予 備 率 を 30~ 40%と 仮 定 すると 2025 年 には 発 電 設 備 容 量 は 1,491MW に 達 することが 期 待 されている 東 部 地 域 の 電 力 供 給 は 大 部 分 をディーゼル 発 電 に 頼 っている これは 当 地 域 が 島 嶼 部 であり それぞれが 極 めて 小 規 模 の 系 統 で 構 成 されていることによるものである し かしながら 現 下 の 国 際 石 油 取 引 価 格 の 高 騰 により ディーゼル 発 電 は 極 めて 高 コスト 発 電 となっている 燃 料 のディーゼル 価 格 は 2000 年 の 0.07 US$/litter から 2006 年 に は 0.62US$/litter へと 約 9 倍 の 値 上 がりとなった この 結 果 PLN のディーゼル 発 電 の 発 電 コストは 2006 年 時 点 で 17.6 cents$/kwh にもなっている PLN においてディーゼル 発 電 はガスタービン 発 電 と 並 んで 最 も 高 い 発 電 方 式 となっている これに 対 し 同 年 の PLN の 地 熱 発 電 の 発 電 コストは 6.3 cents US$/kWh とされている そのため ディーゼ ル 発 電 の 発 電 コストは 地 熱 発 電 の 約 2.8 倍 にのぼり 両 者 には 11.5 cents US$/kWh の 価 格 差 が 生 じている 2006 年 時 点 での 国 際 石 油 取 引 価 格 は1バレル 約 66US$であったが その 価 格 はその 後 も 値 上 がりが 続 いており 2008 年 に 入 ってからは1バレル 110US$を 越 える 事 態 も 出 現 し た これに 同 調 して ディーゼル 燃 料 価 格 (HSD 油 )も 上 昇 を 続 けている 本 年 3 月 1 日 に PERTAMINA が 発 表 した 産 業 用 ディーゼル 燃 料 価 格 は 東 部 地 域 では 0.936US$/litter にもなっている この 価 格 を 前 提 にするとディーゼル 発 電 は 燃 料 費 のみでも 約 26 cents US$/kWh にもなっていると 推 定 される この 多 額 の 燃 料 費 は PLN 及 び 政 府 の 財 政 を 大 幅 に 逼 迫 している 東 部 地 域 におけるディーセル 発 電 燃 料 使 用 量 は 年 間 約 347,000 kl(kilo litter)である(2006 年 ) この 燃 料 費 は 現 在 の 燃 料 価 格 (0.936US$/litter)を 前 提 と すると 年 間 約 325mUS$にも 上 ると 推 計 される ベースロード 用 の 発 電 をディーゼル 発 電 から 地 熱 発 電 に 転 換 した 場 合 年 間 のディーゼル 燃 料 費 の 62%に 相 当 する 約 214,000kL の 燃 料 費 の 節 約 が 期 待 できる ディーゼル 発 電 からの 地 熱 発 電 代 替 は 年 間 約 200mUS$ 程 度 の 燃 料 費 節 約 効 果 があると 考 えられる 3. 東 部 地 域 の 地 熱 資 源 及 び 地 熱 開 発 調 査 の 現 状 エネルギー 鉱 物 資 源 省 (MEMR)は 国 内 の 253 箇 所 の 地 熱 地 域 を 抽 出 している そのう ち 37 箇 所 が 東 部 地 域 に 位 置 し それらのポテンシャルは 1,914MW 相 当 と 算 出 されている JICA(2007)は,これら 253 箇 所 のうち 有 望 な 73 地 域 を 対 象 に 地 熱 発 電 開 発 マスタープラ ン 調 査 を 実 施 した 東 部 地 域 については 11 地 熱 地 域 を 調 査 対 象 として 地 熱 資 源 評 価 等 が 実 施 されている 要 約 -3

166 東 部 地 域 では Ulumbu 及 び Mataloko の2 地 域 において PLN により 詳 細 な 地 熱 資 源 調 査 がすでに 実 施 され 坑 井 掘 削 により 有 望 な 地 熱 貯 留 層 の 存 在 が 確 認 されている 両 地 域 の 調 査 では 20MW の 発 電 所 建 設 が 検 討 されている 一 部 の 地 熱 地 域 では 必 要 な 調 査 の すべてではないが 地 表 調 査 ( 地 質 地 化 学 物 理 探 査 など)が 実 施 され 地 熱 資 源 賦 存 の 可 能 性 が 把 握 されている しかし その 他 の 地 域 では 地 熱 の 存 在 把 握 だけを 調 査 する いわゆる 概 査 が 実 施 されているだけである このために 現 段 階 では 定 性 的 に 数 10MW 程 度 の 地 熱 発 電 可 能 な 資 源 賦 存 量 があるとは 判 断 できるものの ディーゼル 代 替 電 源 開 発 を 行 いたい 地 域 のすべてをカバーできる 地 熱 発 電 事 業 が 可 能 かの 定 量 的 判 断 はできな い このように 東 部 地 域 では 地 熱 資 源 開 発 の 段 階 としては 初 期 の 段 階 ( 予 察 調 査 また は 概 査 段 階 )にある 地 域 が 多 い 地 熱 発 電 開 発 を 計 画 するにあたっては 賦 存 する 地 熱 資 源 量 に 対 応 した 開 発 規 模 や 開 発 方 法 等 の 発 電 所 建 設 計 画 に 必 要 な 条 件 を 把 握 しなければならない このためには 地 熱 構 造 モデル 構 築 や 資 源 評 価 を 実 施 する 必 要 がある これまでの 地 表 調 査 いわゆる 概 査 により 得 られている 地 質 地 化 学 物 理 探 査 データからだけでは これらの 必 要 な 条 件 を 把 握 することはできない したがって 今 後 地 熱 開 発 を 進 め 事 業 化 するためには 地 熱 資 源 に 関 する 精 密 調 査 が 必 要 である また その 結 果 に 基 づき 調 査 井 を 掘 削 し 地 熱 流 体 を 噴 気 させる 坑 井 試 験 を 行 い 地 熱 貯 留 層 の 存 在 の 確 認 と 地 熱 資 源 量 ( 出 力 ) 評 価 を 実 施 する 必 要 がある これらの 調 査 から 開 発 発 電 所 建 設 に 至 る 一 連 の 事 業 を MEMR は PLN に 実 施 させるとし ている 前 述 のとおり 現 在 PLN は Ulumbu 及 び Mataloko において 小 規 模 地 熱 発 電 開 発 を 進 めており ほかにも Hu'u Daha, Jailolo, Tolehu 及 び Sembalun において 開 発 を 進 める 計 画 も 持 っている PLN は 東 部 地 域 の 小 規 模 地 熱 開 発 の 推 進 に 意 欲 的 である MEMR は 東 部 における 地 熱 発 電 事 業 の 推 進 を 前 述 の 11 地 域 のみならず 多 くの 地 域 で 進 めようとしていることから それらの 地 域 での 電 力 需 要 ディーゼル 発 電 代 替 の 可 能 性 地 熱 資 源 賦 存 等 を 調 査 し それぞれに 開 発 計 画 を 策 定 する 必 要 がある これらの 調 査 は 後 述 する 約 7 地 域 での 円 借 款 事 業 の 詳 細 計 画 立 案 にも 必 要 であると 同 時 に その 後 の 東 部 地 域 開 発 促 進 にも 不 可 欠 なものである MEMR は 地 熱 発 電 所 建 設 のための 円 借 款 事 業 の 中 で 地 熱 発 電 事 業 の 可 能 性 のあるすべての 地 域 における 調 査 計 画 立 案 を 行 い たいとしている 4. 環 境 影 響 について 東 部 地 域 の 地 熱 発 電 開 発 において 課 題 となる 可 能 性 ある 環 境 規 制 について 調 査 を 行 っ た 法 規 制 としては 環 境 省 令 No. 17/2001 で 地 熱 発 電 所 については 出 力 が 55MW 以 上 のものが 環 境 影 響 評 価 (AMDAL)の 対 象 となっている ただし 55MW 未 満 の 地 熱 発 電 所 であっても 保 護 地 域 に 立 地 する 場 合 には 環 境 影 響 評 価 を 義 務 付 けられている AMDAL に 係 わる 政 令 No. 27/1999 において AMDAL が 義 務 付 けられない 業 種 活 動 を 行 うものには UKL( 環 境 管 理 活 動 (UKL)と 環 境 モニタリング 活 動 (UPL))を 提 出 することが 義 務 付 け られ その 実 施 要 領 に 係 わるガイドラインは 環 境 省 令 No. 86/2002 としてまとめられて いる 地 熱 発 電 開 発 を 森 林 法 上 の 森 林 内 で 実 施 する 場 合 活 動 が 制 限 される 場 合 がある 政 令 No.41/1999 では 森 林 を 生 産 林 保 護 林 や 保 全 林 に 分 類 しており 保 全 林 の 一 部 では 地 熱 発 電 開 発 が 実 施 できないところがある プロジェクト 実 施 にあたっては 開 発 予 定 地 域 要 約 -4

167 に 保 全 林 が 含 まれるかどうか 事 前 に 把 握 する 必 要 がある 政 令 NO.2/2008 では 地 熱 発 電 開 発 のために 保 護 林 や 生 産 林 を 使 用 することが 国 に 使 用 料 を 納 めることで 認 められ ている MEMR の 調 査 によると 東 部 地 域 には 37 の 地 熱 地 域 があると 報 告 されている そのうち マスタープラン 調 査 で 情 報 が 収 集 できた 11 地 域 については 保 全 林 との 地 熱 地 域 の 地 理 的 関 係 が 確 認 できた その 結 果 地 熱 発 電 開 発 を 不 可 能 にするような 深 刻 な 問 題 がある 地 域 はないことがわかった しかしながら 開 始 後 のトラブルを 避 けるためには 詳 細 な 自 然 社 会 環 境 規 制 情 報 をプロジェクト 開 始 前 に 充 分 に 収 集 しておくべきと 考 える 現 在 までに 情 報 収 集 ができていない 残 り 26 地 域 の 状 況 についてはプロジェクト 実 施 地 域 選 定 の 際 に 確 認 する 必 要 がある 5. 実 施 計 画 ディーゼル 発 電 用 燃 料 の 高 騰 による 政 府 及 び PLN の 財 政 状 況 の 悪 化 に 対 応 するために インドネシア 政 府 は 東 部 における 地 熱 発 電 開 発 を 急 ぐ 必 要 があるとしている 本 調 査 に おける 同 国 政 府 (MEMR BAPPENAS MOF)や 関 係 機 関 PLN との 打 合 せに 基 づき 実 現 性 の 高 いあるいは 緊 急 性 のある 地 域 におけるパイロット 的 地 熱 発 電 開 発 プロジェクトとして 発 電 事 業 規 模 や 開 発 期 間 を 考 慮 して 合 計 35MW の 小 規 模 地 熱 発 電 所 建 設 事 業 が 計 画 され た 打 合 せ 時 の 各 関 係 機 関 の 意 向 により 東 部 における 地 熱 発 電 事 業 の 早 期 実 現 のため には 円 借 款 による 支 援 を 受 けることが 望 ましいとされ PLN プロジェクトとして MEMR が ブルーブック 登 録 手 続 きを 行 うこととなった 地 熱 発 電 開 発 事 業 本 プロジェクトは 地 熱 開 発 マスタープラン 調 査 (JICA,2007) フローレス 島 地 熱 発 電 事 業 化 調 査 (JETRO,2006) 等 の 結 果 に 基 づき 東 部 地 域 の 地 熱 発 電 開 発 を 実 施 するも のである 事 業 には 地 熱 資 源 調 査 から 調 査 の 一 部 としての 地 熱 資 源 確 認 ための また 蒸 気 確 保 のための 坑 井 掘 削 さらには 発 電 所 建 設 まで 含 まれる プロジェクト 対 象 地 域 の 選 定 :ディーゼル 発 電 所 の 設 置 地 点 送 配 電 線 電 力 消 費 量 地 熱 資 源 の 特 性 や 開 発 可 能 量 ( 初 期 地 表 調 査 と 地 熱 資 源 量 評 価 )を 基 に ディーゼル 発 電 代 替 事 業 に 適 切 な 地 熱 地 域 を 選 定 する 選 定 された 地 域 の 資 源 開 発 発 電 所 開 発 計 画 を 策 定 する 一 部 の 地 域 については 資 源 の 評 価 や 開 発 計 画 が 立 案 されているが 開 発 が 期 待 される 地 域 ( 約 7 地 域 ) すべてについての 計 画 は 策 定 されていないことから 初 期 地 表 調 査 として 本 格 プロジェクト 開 始 前 に 行 うこの 調 査 を 行 い 計 画 をより 具 体 化 さ せる 必 要 がある 地 熱 資 源 調 査 ( 精 密 地 表 調 査 ): 開 発 対 象 地 熱 地 域 において 地 熱 資 源 の 賦 存 地 熱 貯 留 層 の 広 がりの 把 握 及 び 地 熱 蒸 気 確 認 確 保 用 の 坑 井 掘 削 ターゲット 選 定 のために 地 質 地 化 学 物 理 探 査 などの 精 密 地 表 調 査 を 実 施 する 精 密 地 表 調 査 の 実 施 後 調 査 によって 収 集 されたデータをデータベース 化 し これを 用 い 地 熱 概 念 モデル 構 築 し 地 熱 資 源 量 算 出 等 の 総 合 解 析 を 行 う この 結 果 に 基 づき 地 熱 資 源 開 発 計 画 を 必 要 があれ ば 修 正 を 行 い 地 熱 概 念 モデルを 精 緻 化 する 坑 井 掘 削 による 資 源 確 認 及 び 蒸 気 確 保 : 精 密 地 表 調 査 の 結 果 に 基 づき インドネシア 東 部 の 約 14 地 熱 地 域 において 28 本 の 調 査 井 を 掘 削 する 噴 出 に 成 功 した 調 査 井 は 生 産 井 として 使 用 する さらに 廃 熱 水 等 を 還 元 するために 7 本 の 還 元 井 を 掘 削 する 要 約 -5

168 地 熱 資 源 量 ( 出 力 ) 評 価 : 調 査 井 の 試 験 結 果 を 精 密 地 表 調 査 結 果 とともに 地 熱 概 念 モデ ルに 反 映 させる この 概 念 モデルを 数 値 モデル 化 し 地 熱 貯 留 層 数 値 シュミレーション 等 による 地 熱 資 源 量 評 価 を 行 い 最 適 開 発 出 力 を 明 らかにする この 調 査 結 果 に 基 づき 資 源 開 発 計 画 を 必 要 があれば 修 正 し 発 電 所 建 設 計 画 を 策 定 する また 発 電 所 の 概 念 設 計 を 行 い 送 電 計 画 を 作 成 する 以 上 の 地 熱 資 源 調 査 開 発 について PLN 等 のインドネシア 国 側 の 能 力 を 考 慮 すれば 坑 井 掘 削 を 含 めた 地 熱 資 源 開 発 は 地 熱 開 発 特 有 の 技 術 と 経 験 が 必 要 なことから 豊 富 な 経 験 能 力 を 有 する 地 熱 開 発 コンサルタントを 雇 用 して 事 業 を 推 進 する 必 要 がある 地 熱 発 電 所 建 設 : 各 地 熱 地 域 の 地 熱 資 源 調 査 と 坑 井 掘 削 後 に 合 計 35MW の 小 規 模 発 電 設 備 を 建 設 する 発 電 設 備 は 本 プロジェクトの 早 期 完 成 を 考 慮 し 各 地 域 の 発 電 所 建 設 をまとめて 単 一 コントラクターによる 設 計 資 機 材 供 給 据 付 試 運 転 調 整 渡 し( 一 括 フルターンキー 方 式 )とすることが 望 ましい なお 送 変 電 設 備 には 発 電 所 主 変 圧 器 の 高 圧 側 端 子 から 構 内 開 閉 所 までの 送 電 線 構 内 開 閉 所 の 遮 断 器 断 路 器 母 線 CT VT 避 雷 器 支 持 鉄 構 碍 子 保 護 継 電 器 盤 その 他 付 属 設 備 附 帯 土 木 建 築 工 事 等 一 式 を 含 むものとする 発 電 所 建 設 については PLN は 充 分 な 経 験 をもつが 従 来 より 実 施 しているようにコ ンサルタントの 技 術 的 助 勢 を 受 け 実 施 されるものと 思 われる CDM 化 地 熱 発 電 によるディーゼル 発 電 代 替 事 業 は CDM プロジェクトとして 最 適 である 温 室 効 果 ガス 削 減 効 果 は 200kW 以 上 のディーゼル 発 電 代 替 の 場 合 0.8(t-CO2/MWh)とされて いる 貯 留 層 数 値 シミュレーションで 開 発 出 力 を 算 出 し 発 電 設 備 概 念 設 計 結 果 を 参 照 す れば 温 室 効 果 ガス 削 減 量 は 推 定 でき CDM プロジェクトの 登 録 手 続 きを 始 めることが 可 能 である 事 業 実 施 者 としての PLN PLN は 以 下 の 背 景 経 緯 から 本 プロジェクトの 実 施 主 体 となりうると 考 えられる 東 部 地 域 を 含 む 島 嶼 地 域 の 電 力 供 給 は PLN が 実 施 している PLN には 安 定 した 電 力 供 給 の 責 任 があることから 本 地 熱 発 電 プロジェクトを 東 部 インドネシアの 電 力 供 給 の 効 率 化 と 分 散 化 を 促 進 させる 再 生 可 能 エネルギー 開 発 事 業 と 位 置 づけ 現 在 東 部 地 域 の 幾 つかの 地 熱 地 域 での 地 熱 開 発 の 可 能 性 を 自 ら 調 査 している PLN は 地 熱 資 源 開 発 においては 充 分 な 知 見 を 有 し 発 電 送 配 電 では 安 定 運 転 安 定 供 給 の 充 分 な 経 験 をもつ 多 くの 技 術 者 を 有 している また 地 熱 資 源 開 発 についても 専 門 的 知 識 をもつ 技 術 者 を 人 数 的 には 多 くはないが 有 している PLN は 経 験 や 能 力 を 有 する 専 門 家 を 本 地 熱 開 発 プロジェクトに 充 てることが 可 能 である PLN は 内 外 のコンサルタント 及 び 資 源 調 査 会 社 を 使 った 地 熱 発 電 開 発 の 経 験 を 有 し 専 門 機 関 の 能 力 を 適 切 に 用 い 地 熱 発 電 開 発 を 推 進 していくことが 可 能 と 判 断 される 実 施 スケジュールと 事 業 コスト プロジェクト 実 施 スケジュールでは 円 借 款 締 結 から( 現 在 計 画 されている 7 箇 所 の 発 電 所 のうちの) 最 後 の 地 熱 発 電 設 備 の 運 転 開 始 まで 81 ヶ 月 を 要 すると 想 定 している この 場 合 プロジェクトが 2008 年 11 月 に 開 始 されれば 2015 年 の 7 月 に 完 了 すること 要 約 -6

169 になる プロジェクトコストは 161 百 万 米 ドル 程 度 と 推 定 される(インドネシア 国 側 が 坑 井 の 仕 様 の 変 更 等 を 希 望 した 場 合 190 百 万 ドルを 超 えることもあり 得 る) PLN はプロジェ クト 実 施 に 必 要 な 資 金 調 達 を 行 う 必 要 があり 円 借 款 による 支 援 を 強 く 期 待 している 6. 経 済 性 評 価 本 プロジェクトの 経 済 的 実 行 可 能 性 を 経 済 的 内 部 収 益 率 法 によって 検 証 した 検 証 で は 本 プロジェクトと 同 等 の 便 益 ( 売 電 )を 提 供 する 代 替 プロジェクトを 選 定 し 本 プ ロジェクトの 耐 用 年 数 間 のプロジェクトと 代 替 電 源 との 経 費 を 現 在 価 値 にて 比 較 し 等 価 割 引 率 を 求 めた 求 めた EIRR をハードルレートと 比 較 し 本 プロジェクトの 経 済 性 を 評 価 した 代 替 電 源 としてディーゼル 発 電 所 を 選 定 した この 結 果 本 プロジェクトの 代 替 電 源 に 対 する EIRR は 39.5%と 算 出 され ハードルレート 12%より 十 分 に 大 きく 本 プロジェクトは 経 済 的 に 見 ても 代 替 電 源 に 充 分 に 対 抗 できると 判 断 された また 燃 料 費 としてそれぞれ 年 平 均 で 約 百 万 US$ 相 当 プロジェクト 期 間 では 約 1, 百 万 US$ 相 当 を 節 約 できるものと 計 算 された 削 減 された 国 内 消 費 の 燃 料 は 貴 重 な 外 貨 獲 得 のために 活 用 できると 考 えることも 可 能 である また 地 熱 エネルギー はCO 2 をほとんど 排 出 しない 再 生 可 能 エネルギーであることから 地 球 環 境 保 全 面 から も 本 プロジェクトは 貢 献 すると 考 えられ 国 策 としても 十 分 にフィージブルであると 考 えられる このプロジェクトの 経 費 ( 投 資 額 と 運 転 経 費 )と 蒸 気 及 び 電 力 の 販 売 による 収 益 が 同 等 となる 内 部 収 益 率 を 求 め プロジェクトの 機 会 費 用 と 比 較 して 財 務 性 を 評 価 した そ の 結 果 FIRR は 11.95%となり WACC2.35%よりも 十 分 に 大 きい 値 となった 現 時 点 での 評 価 ではあるが 本 プロジェクトは 財 務 的 にもフィージブルであると 言 える 政 府 機 関 の 実 施 プロジェクトとして 適 当 とされている 財 務 的 内 部 収 益 率 12%を 目 標 にした 場 合 この 地 熱 発 電 事 業 による 電 気 料 金 は 14 cents/kwh 程 度 としなければならな い 民 間 企 業 の 場 合 は 既 に 政 府 が 公 認 しているように 財 務 的 内 部 収 益 率 の 目 標 値 を 16%とすれば 買 取 電 気 料 金 を 14 cents/kwh 程 度 とすることはできず さらに 高 額 にし なければ この 収 益 率 は 得 られない 政 府 (あるいは PLN)が 一 貫 開 発 ( 下 流 開 発 であ る 発 電 所 建 設 及 び 上 流 開 発 である 蒸 気 ( 資 源 ) 開 発 の 両 方 )を 実 施 した 場 合 電 力 補 助 金 の 削 減 効 果 は 最 大 となる もし 本 プロジェクト 民 間 企 業 が 一 貫 開 発 した 場 合 は 財 務 的 内 部 収 益 率 が 16%あったとしても キャッシュフローをみると 運 転 操 業 資 金 として 50 百 米 ドル 以 上 の 借 入 をしなければ 事 業 は 維 持 できない この 運 転 資 金 調 達 は 民 間 事 業 者 にとって 重 い 負 担 になると 考 えられる このように プロジェクトの 経 済 評 価 からも 民 間 事 業 者 による 東 部 の 島 々の 地 熱 開 発 は 困 難 であり ODA による 支 援 が 得 られる 政 府 機 関 がプロジェクトを 実 施 するのが 最 も 適 切 であると 判 断 される 7.CDM プロジェクトの 可 能 性 地 熱 発 電 は 一 般 の 他 の 電 源 に 比 べてライフサイクルにおける CO 2 排 出 量 が 少 ないとい われている また 地 熱 発 電 所 は 稼 働 率 が 高 く 他 の 再 生 可 能 エネルギーより 大 きな 電 力 を 発 生 する したがって 大 きな CO 2 削 減 効 果 が 期 待 できるため CDM プロジェクトと して 魅 力 的 である 要 約 -7

170 小 規 模 地 熱 発 電 は 小 規 模 CDM においてタイプ I に 分 類 される タイプ I は 再 生 可 能 エ ネルギープロジェクトで 最 大 出 力 (プラントの 設 備 容 量 )が 15MW 以 下 のものとされて いる 電 力 系 統 に 接 続 された 小 規 模 地 熱 発 電 プロジェクトでは 方 法 論 として AMS I.D が 適 用 可 能 である AMS I.D において 設 備 容 量 稼 働 率 によって 異 なるが 200KW 以 上 の 小 規 模 地 熱 発 電 では 排 出 係 数 は 0.8(t-CO 2 /MWh)と 定 められている したがって 合 計 35MW の 小 規 模 地 熱 発 電 プロジェクトの 場 合 削 減 効 果 として (kt-co 2 /year)が 期 待 される 8. 東 部 地 域 小 規 模 地 熱 開 発 プロジェクト 準 備 インドネシア 政 府 及 び 関 係 機 関 の 意 向 として 東 部 地 域 のディーゼル 発 電 代 替 のパイ ロット 的 小 規 模 地 熱 発 電 開 発 事 業 を 円 借 款 の 支 援 を 受 け 実 施 することとなったが 予 定 事 業 の 開 発 規 模 が 35MW と 比 較 的 小 さいため 本 プロジェクト 内 で 将 来 の 地 熱 発 電 開 発 拡 大 の 見 通 しを 立 てることも 同 国 政 府 は 希 望 していることから 次 の 条 件 を 満 たすプロ ジェクトを 実 施 する 必 要 がある 本 事 業 で 発 電 所 建 設 を 行 う 可 能 性 のある 有 望 地 域 での 地 熱 資 源 精 密 調 査 ( 構 造 及 び 資 源 量 評 価 ) 本 事 業 で 発 電 所 建 設 を 行 う 可 能 性 のある 有 望 地 域 での 調 査 井 掘 削 とその 後 の 噴 気 成 功 井 の 生 産 井 への 転 用 還 元 井 掘 削 本 事 業 で 発 電 所 建 設 を 行 う 有 望 地 域 での 発 電 事 業 計 画 の 策 定 約 7 地 域 のそれぞれ 約 5MW の 小 規 模 地 熱 発 電 所 建 設 の 実 現 東 部 地 域 の 37 地 域 の 地 熱 資 源 評 価 及 び 将 来 の 地 熱 発 電 開 発 計 画 策 定 既 存 のデータ 報 告 書 からは データ 不 足 のため 約 7 地 域 の 詳 細 な 開 発 計 画 や 37 地 域 の 地 熱 資 源 評 価 や 開 発 計 画 を 立 案 することは 難 しい 地 熱 発 電 事 業 における 地 熱 資 源 調 査 や 開 発 には 事 前 に 把 握 することの 難 しい 不 確 定 な 要 素 が 含 まれることから 凡 そ の 開 発 計 画 でプロジェクトを 開 始 し その 都 度 計 画 に 修 正 を 加 えていくことで 適 正 な 事 業 とする 場 合 が 多 い しかし 本 地 域 の 場 合 は 既 存 のデータに 幾 分 かの 追 加 情 報 やデ ータを 加 えれば より 精 度 の 高 い 計 画 の 立 案 が 可 能 であることから 詳 細 な 事 業 内 容 や 工 程 の 立 案 事 業 の 効 果 等 を 明 らかにするために 事 前 の 準 備 を 調 査 することが 望 まし い この 事 前 に 実 施 すべき 調 査 では 既 設 発 電 所 の 設 置 地 点 送 配 電 線 電 力 消 費 量 を 調 査 し さらには 地 熱 資 源 の 特 性 や 開 発 可 能 量 ( 初 期 地 表 調 査 と 地 熱 資 源 量 評 価 )を 把 握 し ディーゼル 代 替 事 業 に 適 切 な 地 熱 地 域 を 選 定 する データ 及 び 解 析 結 果 を 用 い 選 定 された 地 域 の 資 源 開 発 発 電 所 開 発 計 画 を 策 定 する このうち 有 望 度 の 高 い あるい は 開 発 緊 急 度 の 高 い 約 14 地 域 を 選 定 し 一 部 の 地 域 で 既 に 実 施 されている 地 熱 資 源 評 価 や 開 発 計 画 を 組 み 入 れ 本 事 業 の 計 画 を 作 成 する この 調 査 により 地 熱 資 源 調 査 や 開 発 時 のリスクを 大 幅 に 軽 減 でき 適 切 な 開 発 計 画 を 作 成 することが 可 能 となる 本 準 備 調 査 には 今 回 のプロジェクトでの 地 熱 発 電 所 建 設 予 定 地 域 以 外 の 地 熱 地 域 も 含 まれていること さらにプロジェクト 開 始 以 前 に 本 調 査 を 行 うことにより 適 正 な 計 画 が 立 案 されることが 望 ましいことから 可 能 であれば SAPPROF を 適 用 し 事 前 に 調 査 及 び 計 画 立 案 ができることが 望 ましい 要 約 -8