Small Scale Coal Power Plant in Indonesia Taufik Sastrawinata Director Technology and Business Development of PT. Advance Technology Indonesia and Secretary General of Indonesian Coal Society Indonesia
Small Scale Coal Power Plant in Indonesia Taufik Sastrawinata Director Technology and Business Development of PT. Advance Technology Indonesia and Secretary General of Indonesian Coal Society tsast@bit.net.id Abstract The Indonesian situation has arisen from the imbalance of electric power demand growth and the development of its supply capacity. With the difficult condition of investment as today, it is difficult to implement network expansion and power plant construction. The advantages of developing small scale power plant are: relatively more competitive compared to Diesel Plant, can be used to provide electricity to coal mining process or steam that may be required for drying of coal to get lower moisture content, and requires relatively low financing capability to install, requires 20 kv lines to distribute its generated electricity hence it could assist the Government/PLN to provide electricity especially in the city nearby the mining complex, and relatively easier and faster to install. The coal fired Steam Power Plant (2 X 7 MW) consist of 2 (two) complete Stoker Boiler, capable of burning and fired with a wide range of coal without any problem in achieving the plant efficiency as well as environmental requirement. The efficiency of the boiler is 84 % and overall efficiency is 21 %. The Project have selected 80% as the capacity factor for the purposes of the Feasibility Study after a concentrated effort to balance a low tariff rate, efficiency, project viability, increased local funding and risk sharing. The proposed Tariff Rates would be US 5 Cents/kWh, with the total project cost ranging USD 13-15 Millions. The domestic content will be 70 % engineered and manufactured in Indonesia. I. Introduction By 2001, total installed power plant capacity out side Java Bali is 5,385 MW, Diesel Plant contributes 45 %, followed by CCGT & OCGT 27 %, Steam Power Plant 14 %, Hydro 13 % and the rest of 1 % is geothermal, solar and others. Considering the financing constraint and national macro economy of the country, within the next few years, electricity demand growth is expected will be driven by financing ability instead of market driven, unlike that was occurred in the past. Currently, electricity power supply and distribution in Indonesia is mainly managed by state owned company, PT PLN (Persero), while private sector power companies and cooperatives have very limited involvement. In the future, the pattern of electric power supply and distribution will be directed to multi buyers-multi sellers pattern as stipulated in the National Electricity Law.
The situation has arisen from the imbalance of electric power demand growth and the development of its supply capacity. With the difficult condition of investment as today, it is difficult to implement network expansion and power plant construction. In fact even Java-Bali system is feared to fall into crisis. End 2001, PLN announced that there are 28 electricity systems in 9 PLN regions off- Java. Four locations in Region I (Nangroe Aceh Darussalam) and two locations in southern Sumatra system and Region IV (Central and South Kalimantan) have experienced block-out turns during peak load. This cannot be seen from electric power balance in each PLN Region. In general, electric power balance in each PLN Region (Table 1) indicates only two critical regions, namely Region II and Region VIII. Table 1. PLN power plants balance 2000 Installed Capacity Effective Capacity (MW) (MW) Reserve Margin (%) Region I 67.3 41.6 62% Region II 0.4 0.7-43% Region III 210.8 136.2 55% Region IV 179.9 89.1 102% Region V 226.9 146.0 55% Region VI 564.7 392.9 44% Region VII 274.0 192.8 42% Region VIII 470.7 410.5 15% Region IX 108.2 54.1 100% Region X 116.7 64.6 81% Region XI 233.5 159.2 47% Batam 96.7 72.5 33% Sistem Sumbagut 1,509.1 951.1 59% Sistem Sumbagsel 1,210.9 809.0 50% Source: PLN
Region Table 2. PLN and private sector power plants balance PLN (MW) Private Total Peak Load Installed Effective (MW) (MW) (%) Reserve Margin Region I 128.1 97.5-128.1 155.0-17% Region II 1,246.5 964.4-1,246.5 862.0 45% Region III 959.5 734.4 0.8 960.4 545.0 76% Region IV 823.3 692.7 6.2 829.4 695.0 19% Region V 226.9 162.2-226.9 161.0 41% Region VI 564.7 392.9 7.4 572.1 432.0 32% Region VII 274.0 210.0-274.0 207.0 32% Region VIII 470.7 376.4 220.0 690.7 407.0 70% Region IX 108.2 72.9 0.3 108.5 40.0 171% Region X 116.7 81.8 120.2 236.9 69.0 243% Region XI 233.5 166.0 3.0 236.5 144.0 64% Source: PLN In order to solve the electricity at the regional autonomy that abundant fuel such as coal, small-scale power plant would be the alternative. Several identified advantages of developing small scale power plant are: a. Mine mouth scheme is relatively more competitive compared to Diesel Plant. b. It can be used to provide electricity to coal mining process or steam that may be required for drying of coal to get lower moisture content. c. It requires relatively low financing capability to install, in which in line with the financing capabilities of the country. d. It only requires 20 kv lines to distribute its generated electricity hence it could assist the Government/PLN to provide electricity especially in the city nearby the mining complex. e. It is relatively easier and faster to install. f. It could absorb of up to 80 % of local content, which then could to support the existence of local manufacturing industry of the country. As the competitiveness of coal as a fuel, it will have a major role in Indonesia until the year 2010 as shown in Figure 1.
400 Million SBO 350 300 250 200 150 Gas Hydro Geothermal Coal Oil 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year Figure 1. Power plants fuel outlook according to Baseline Scenario II. Small Scale Power Plant. The implementation of small scale coal power plant consist of the design, construction and operation & maintenance, and to achieve the most cost effective development of the site, including: Utilizing good engineering practices compatible with the existing system. Achieving an environmentally acceptable Project to meet the requirements of Indonesia. Achieving the highest economically feasible levels of efficiency, reliability, safety and availability. Optimizing the operation and maintenance (O&M) procedures of the equipment and facilities, so that the O&M cost shall be technically efficient and effective. Utilizing local available coal as the energy source, thereby meeting the Government of Indonesia s long-term energy utilization strategy.
Ensuring the majority of the plant staff, as they are Indonesian personnel that have been well trained and who will be permanently employed at all levels of plant operations. Benefit for the General Economy of Indonesia is the availability of economically priced capacity and energy will lead to accelerate industrial development and to lower cost of production. The Project will maximize the use of Indonesian manufactured goods and services and the utilization of established Indonesian companies in order to enhance the industrial development. Regional Economic Benefits would be the relationship of the Project to the local economy and the local community, development of a major facility such as that proposed will create numerous support positions in companies supplying service to the Project and its employees. In addition, abundant supplies of reliable electricity may enhance the attraction of industry to the region. The coal fired Steam Power Plant (2 X 7 MW) consist of 2 (two) complete Stoker Boiler, capable of burning and fired with a wide range of coal without any problem in achieving the plant efficiency as well as environmental requirement. The efficiency of the boiler is 84 % and overall efficiency is 21 %. Steam from these Stoker boilers will be fed individually to the single flow condensing steam turbine, for electric generator driving. Ash handling system and facilities will be provided to handle ash, a product of coal combustion and further will be disposed off in the allocated Ash Disposal Area nearby this Power Plant. 1. Steam generator Type Steam Flow : Natural Circulation : 38 ton/hr
Feedwater Temperature : 150 o C Superheater Steam Outlet Pressure : 38 kg/cm2 Superheater Steam Outlet Temperature: 450 o C Draft System : Balanced Draft 2. Grate and Spreader 3. Air Pollution Control: Electro static Precipitator 4. Fuel Handling: Belt Conveyor Coal Storage Coal Storage Bunker 5. Ash Handling 6. Steam Turbine System Type : Condensing Rated Output : 7.000 kw Speed : 3000 rpm Main Steam Pressure : 35 kg/cm2 Main Steam Temperature : 435 o C 7. Chlorination System: Electrolysis Analyzer 8. Water Treatment System Raw Water Treatment And Reverse Osmosis Pre-Treatment Ro Pre-Treatment (Ultra filtration) Reverse Osmosis And Demin Water Tank 9. Drinking Water System 10. Chemical System Type: Vertical Cylindrical Vessel 11. Chemical Analysis Panel Type: Grab sample 12. Waste Water Treatment Type: Sediment neutralization type and ultra-filtration
III. Economic Analysis Figure 3. Plant Schematic. The Project has evaluated a number of assumptions with respect to Contractual Availability Factor. The Project have selected 80% as the capacity factor for the purposes of the Feasibility Study after a concentrated effort to balance a low tariff rate, efficiency, project viability, increased local funding and risk sharing. The proposed Tariff Rates would be US 5 Cents/kWh, with the total project cost ranging USD 13-15 Millions. The Tariff Structure proposed consists of four (4) payment elements: Capacity Charge Component A (Capital Cost Recovery Charge) Fixed O&M Charge Component B Fuel Payment Charge - Component C (Energy Charge) Variable O&M Charge Component D Component A. Capacity Charge B. Fixed O&M Charge C. Fuel Charge D. Variable O&M Charge Tariff US$ 2.71 cents US$ 0.94 cents US$ 1.24 cents US$ 0.21 cents
Total Electricity Tariff US$ 5.00 cents This calculated electricity price is based on: Gross Capacity 14.00 MW Net Contractual Capacity 12.68 MW Potential Availability Factor (AFp) 92 % Capacity Factor (CF) 80 % Caloric Values 5,100 kcal/kg (LHV) Fuel Cost US$ 15 per Ton Operation Period 20 years Interest Rate 6 % Internal Rate of Return (IRR) 11.0 % Payback Period 8 years Currency Exchange Rate US $1 = Rp. 8,500 IV. National Product Indonesia has recently to come over the economic crisis with 4 % economic growth in the year 2003. In order to have more economic development, Indonesia has been encourage to private sector to increase their capabilities to generate and produce a national product. Concurring with this policy, it was signed a Memorandum of Understanding with three Ministers that are Minster of Energy and Mineral Resources, Minister of Industry and Trade and Minister of Research and Technology / Chair of Agency for the Assessment and Application of Technology to support a pilot project of local content for engineering and manufacturing in small scale coal power plant. The capacity of the power plant is 2 x 7 MW and located in East Kalimantan and will be 70 % engineered and manufactured locally. It s projected that many regional autonomy need this size and predicted around 10 units every year will be constructed. By comparison, a diesel generator with the same capacity will cost around US$ 9 10 cents per kwh and small-scale coal power plant will cost US$ 5 cents per kwh.
With all of those practical reasons to be implemented, the small-scale coal power plant will benefit the economy of Indonesia in the near future. References 1. Speech of Minister of Mineral Energy and Mineral Resources, Minister of Industry and Trade and Minister of Research and Technology / Chair of Agency for the assessment and Application of Technology, Workshop on Development of Small Scale Coal Power Plant in Indonesia, 10 October 2003. 2. Eddi W Soewondho, The Use of Coal in the Indonesian Electricity, Coal Tech 2003: Coal for POWER and Economic Development, 15-16 September 2003, Balikpapan, Indonesia 3. Firdaus Akmal And Djuwarno, The Scheme Of The Development And Ownership, Of Mine Mouth Small Scale Low Rank Coal Power Plant, Coal Tech 2002, 13-14 June 2002, Bali, Indonesia 4. Taufik Sastrawinata, Outlook For Coal And Electricity In Indonesia, Energy Technology Laboratory, Agency For The Assessment And Application Of Technology (BPPT), Joint 9 th APEC Coal Flow Seminar and the 10 th APEC Clean Fossil Energy Technical Seminar, 18 19 November and 2002, Du Jiang Yan City (Chengdu), P.R. China.