EXPERIENCE ON RURAL ELECTRIFICATION IMPLEMENTATION

E L E C T R I C I T Y F O R A B E T T E R L I F EEXPERIENCE ON RURAL ELECTRIFICATIONIMPLEMENTATIONPT PLN (Persero)Division of System Planning2 nd ASEAN Rural Electrification Workshop30 – 31 May 2012Denpasar, Bali

Electrification Ratio (Dec 2011)NAD90,85%Sumbar74,62%Jambi75,71%Sumut82,59%Bengkulu73,41%Lampung62,60%ElectrificationRatioRiau68,36%Banten74,43%Kepri72,59%Sumsel67,62%Jabar71,03%Kalbar74,28%Babel85,88%Jakarta100%Jateng79,08%Kalteng57,07%Kalsel74,05%DIY77,45% Jatim75,09%Kaltim76,49%Sulbar50,51%Bali70,87%NTB48,92%Gorontalo75,06%Sulteng70,60%Sulsel72,55%Sultra47,11%Sulut79,67%NTT41,55%E L E C T R I C I T Y F O R A B E T T E R L I F EMalut63,84%Maluku72,62%Category :Papua41,99%> 60 %41 - 60 %20 - 40 %Papua Barat61,26%Year1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 20118% 16% 28% 43% 53% 62% 63% 64.34% 65.10% 65.79% 67.15% 73.71%

Java Bali Grid is well developed, but rural electrification (RE) needs tobe speed upSURALAYABOJANEGARACILEGONBANTENCLGONMENESTM.TAWARBLRJA NRGDLKKEMBANGANABEKASICAWANGINDRAMAYUGCIBATU SKMDIAKSBRUINDMYRKBTG GANDUL CIBINONG PBRAN HRGLSJTBRGDEPOKCKPAYBUNAR BGBRUPWKTA SBANGPSALAKCIRATAPCNJURARJWNSRAGI.JATENGT.JATIJPARA PATIRBANGTUBANPRATULBSTUPUBRUGPDLRG DAGOSAGULING UBRNGCGRLGBANDUNGSELATANPKMJNG PSNTSASMDRARCKEKCKSKA MLBNGDRJATGARUTPMPEK500 kV AC500 kV DC150 kVMANDIRANCAN BBKANCAMIS BNJARTASIKMALAYAKNGANMNANGBRBESKBSENRWALOADIPALAKBSENCLCAPWLERIKRPYK TBROK KUDUSKLNGUPWRDIGRUNGUNGARANDIENGKDMBOMRICAMJNGOSRGENWSOBOJAJARGBONG WALINPALURKBMENMDARIPWRJO KNTUG WNSRIWATES PEDANWNGIRIBNTULSMANUDWIMABLORASMNEPGRESIK BKLANBABATPMKSNCEPU BJGROLNGANGLTMRSPANGNGBNGNGAWIKRIAN SBLTNMKRTOKTSNOBNGILNGORO GRATIMNRJOBNGILGNDINGSTBDOBNRANSKLNGPBLGO PAITONKEDIRIPAKISBDWSOKBAGNBWNGIKBAGNWLNGIKKTESLMJNGJMBERTNGULGTENGGLNUKNGARAANTRIPMRONBTRTIAMPLAGNYARKAPALNSDUA– Most developed system in RI, yet electrification ratio is still around 76.45% (Dec2011)– RE has been developed solely by Central Gov (but limited state budget) and PLN,there is no district nor commune electrification initiative/group/cooperative– 500/150 kV grid extension mainly done by corporate action of PLN (Initial phase500 kV prior 1997 was government program trough REPELITA)2

Similar Case in Other IslandsE L E C T R I C I T Y F O R A B E T T E R L I F EDBanda AcehJanthoUleeKarengPSeulawahMeulabohSigliUPLTUMeulabohSamalangaBireunPeusangan 1-2HEPPBlang PidieC. TruengLhokseumaweTakengonBlangkjerenLawe MamasHEPPKuta CaneTapak TuanP. LabuIdieLangsaWampuHEPPSabulusalamT. PuraBinjaiTualang CutP. BrandanMabarP.Geli P. PasirKIMNamorambeGlugurP. BatuTiti KuningBrastagiRenun HEPPSidikalangP. SusuD. SanggulPLTPP. BukitPLTUL. AnginPLTUPLTU/GUBelawanLabuhanLamhotma PLTUSei. RotanSumut-2DenaiK. Namu PerbaunganK. TanjungT. TinggiT . MorawaGalangKisaranG.ParaTeleTarutungSipan HEPPPLTPSarulla&SipaholonSibolgaP. SiantarPorseaSimangkokPLTPS. Merapi500 kV275kV250 kV DC150 kVAsahan IHEPPAsahan IIIHEPPAsahanIV& VHEPPPd . SidempuanPanyabunganSimpang 4G.TuaManinjauHEPPAek KanopanR. PrapatPariamanLubukAlungPd. LuarGIS KotaSingkarakHEPPS.HaruK. PinangBagan BatuP. PangarayanPIPPayakumbuhSumbar PesselPd. PanjangPauhLimoIndarungBungusPLTUSumbar-1BaganSiapi- apiBangkinangBatusangkarDuriMinasGarudaSaktiKt. PanjangHEPPSalakSolokKambangKandisOmbilinPLTPG. TalangPLTPM. LabohMukomukoDumaiNewG.SaktiTelukLembuS. PenuhKIDPerawangPasir PutihT. KuantanKiliranjaoMuaraBungoMeranginHEPPSiak SriIndra PuraTenayanTes HEPPArgamakmurKulimSukamerinduP.BaaiP. KerinciPLTUCirentiTNBMalaysiaMalakaBangkoPLTPHulu LaisPekalonganRengatSarolangunLubukLinggauMusi HEPP500 kVMuara BulianMuaraRupitT. TinggiPagarAlamMannaTembilahanPLTUJambiPLTUK. AgungLahatAur DuriPLTUS. BelimbingPLTUBanjarsariSekayuM. ENIMPLTPR. DedapK. TungkalPLTPL. BalaiMuaraDuaPayoSelincahBukitAsamB. LincirBetungBaturajaS. Lilin.PLTGG. MegangB. UmpuTl. KelapaGIS Kota I2PLTG Kaji 1KeramasanSimpang 3PrabumulihBukitKemuningT.Api-apiGumawang1 . PLTG Apung2. PLTG Ex Pulo Gadung3 . IPP Palembang TimurBorangMarianaPLTPMetroD. RanauBesai HEPPSribawonoAdijayaTeginenengB. Tegi Gd. Tataan NatarPLTPS . Sekincau HEPPPagelaran Langkapura SutamiLiwaPLTPSukaUluBeluTlk .NewrameTarahanBengkunat K. AgungBetungPLTP WaiRatai3P. Ratu74KotabumiTlk. RataiKayuAgung56MenggalaTarahanMesujiPLTPRajabasaDipasenaSp.BanyakKalianda– Sumatera electrification ratiois still around 74,26% (Dec2011)– RE has been developed solelyby Central Gov (but limitedstate budget) and PLN, fewdistrict nor communeelectrificationinitiative/group/cooperative– 500/275/150 kV grid extensionmainly done by corporateaction of PLNSistemJAWA

Demand of electricity is expected to grow fast(2011-2020)E L E C T R I C I T Y F O R A B E T T E R L I F E24TWh55TWhIB : 10,2%13TWh31TWhIT : 10,8%125TWh241TWhJB : 7,8%Electriciy demand is predicted to grow at a average rate of 8,46% per year.Source : RUPTL 2011-20202011 20204

Residential customers still majority portionE L E C T R I C I T Y F O R A B E T T E R L I F E350,000300,000300,000250,000Indonesia250,000200,000Jawa-Bali200,000150,000100,000IndustriPublikBisnis150,000100,000IndustriPublikBisnis50,000Residensial50,000Residensial02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202060,00035,00050,00030,00040,000Indonesia Barat25,000Indonesia Timur30,00020,000IndustriPublikBisnis20,00015,00010,000IndustriPublikBisnis10,000Residensial5,000Residensial02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202002010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Source : RUPTL 2011-20205

Projection of Electrification Ratio (ER) 2011-2020(%)100,090,080,070,0E L E C T R I C I T Y F O R A B E T T E R L I F E• ER Target 2014 is in line withRPJM, EI 72%, WI 82%, JB82% and Indonesia 80%• ER at the end of 2011 is 73.7%,which is EI 62.4%, WI 74.3%,JB 76.5%60,050,02010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020• Substantial increase of ER from 2010 to 2011 due ER Acceleration Program on low ERprovinces• WI : substantial ER increase in Riau (addition of 230k customer), Jambi (80k + 200knon-PLN customer), Sumsel (230k + 100k non-PLN) and Lampung (210k + 130k non-PLN + 70k ex-KLP).• EI : substantial ER increase in NTT (350k + 60k non-PLN), NTB (400k + 23k non-PLN),Papua (220k + 32k non-PLN), Papua Barat (40k + 20k non-PLN)6

State Budget for Rural Electrification 2011-2014E L E C T R I C I T Y F O R A B E T T E R L I F EYearMVLVTrafokms kms MVA UnitNumber ofCustomerCost (m Rp)Cost (m USD)2011 8.198,0 7.615,1 373,3 5.847 382.864 3.223.783,8 358.22012 4.495,6 4.881,1 233,0 3.466 248.833 2.260.194,7 251.12013 7.585,9 7.507,4 386,4 5.623 438.466 3.839.231,7 426.62014 7.403,4 7.326,7 377,1 5.488 427.915 3.746.849,7 416.3Total 27.682,8 27.330,3 1.369,9 20.424 1.498.078 13.070.059,9 1,452.2• Strong commitment and support from central government/MEMR from year to year• It is expected increasing role of district government and local society so not only PLNand Central Gov as the main actors in driving ER7

What about for off-grid RE ? Isolated and Micro Grid[1/3] Off Grid RE Program : Older/Scattered Diesel PPE L E C T R I C I T Y F O R A B E T T E R L I F E• Utilizing older scattered diesel power plant built by PLN (prior 1997)• Number of diesel generating units reaches more than 4.600 units withinstalled capacity more than 3.250 MW (Statistic PLN 2011)• Suffers problem of quality and quantity of supply, and fuel logistic.• Fuel oil for diesel generator is very costly to run, hence the networkdoes not expand• Introducing of hybrid with renewable energy to bring the generationcost lower8

[2/3] Off Grid RE Program : State Budget for Micro/Mini Hydro PPE L E C T R I C I T Y F O R A B E T T E R L I F E• There has been a provision of state budget for development ofmicro/mini hydro for rural electrification• Micro/mini hydro resources only available at certain locations• Community-driven program has been implemented at somelocations by NGOs/cooperatives/local society9

[3/3] Off Grid RE Program : Recent Program (SHS & 1.000 Island PV Plant)1.000 Island Centralised PV PlantE L E C T R I C I T Y F O R A B E T T E R L I F E• Solar HomeSystem programby PLN and GOI• 1000 islandsCentralized PVPlant by PLN andGOI : 857 location• 2012 : Cheap andSave ElectricityProgram byMEMR• (Source : PLN Team for1000 island PV Plant)Proposed IBRDfunded(261 location)Proposed 2012(141 location; OffGrid)IPP PV Plant(71 location)Program for 2013-2014(270 location)100 Island PV PlantProgram(114 location; 20.120 MWp)On GoingAPLN(36 location7.055 MWp)ProcProcessAPLN(78 location13.065 MWp)10

EXISTING PV AND WIND POWER PLANT PROJECTS OF PLNE L E C T R I C I T Y F O R A B E T T E R L I F EINDONESIA-Average Solar Irradiation between 4 – 6 kW/m 2 . Mosthigher radiation is in Eastern of Indonesia- Estimating, the radiation can generate energy about3.7 kWh/day.RIAU&KEPRILocation: TAREMPAANAMBAS IslandCapacity: 200 kWpStatus : ConstructionEAST KALIMANTANLocation: SEBATIKSEBATIK IslandCapacity : 300 kWpStatus : ConstructionEAST KALIMANTANLocation: DERAWAN IslandCapacity : 170 kWp + BatteryStatus : Operation on March 2011NORTH SULAWESILocation : MIANGAS IslandCapacity : 30 kWpStatus : Operation on Oct 2011RIAU&KEPRIEAST KALIMANTANNORTH MALUKUNORTH SULAWESILocation: MORO.KARIMUN IslandCapacity: 200 kWpStatus : ConstructionLocation: BUNYUBUNYU IslandCapacity : 150 kWpStatus : On TenderLocation : MOROTAI IslandCapacity : 600 kWpStatus: Operation on April 2012Location : MARAMPIT IslandCapacity : 50 kWpStatus : ConstructionNORTH SULAWESILocation : BUNAKEN IslandCapacity : 335 kWp + BatteryStatus : Operation on Feb. 2011WEST SUMATERALocation: SIMALEPETSIPORA IslandCapacity: 40 kWpStatus : ConstructionWEST NUSA TENGGARALocation : GILI TRAWANGANCapacity : 200 kWpStatus : Operation on Feb 2011SOUTH SULAWESILocation: TOMIA IslandCapacity : 75 kWpStatus : Operation on May 2011PAPUALocation: SAONEKRAJA AMPAT IslandsCapacity : 40 kWpStatus : Operation on Dec. 2010WEST SUMATERALocation: TUA PEJATSIPORA IslandCapacity: 150 kWpStatus : ConstructionMALUKULocation: BANDA NAIRACapacity : 100 kWpStatus : Operation on Dec. 2010: Wind Turbine Projects: Photovoltaic ProjectsBALILocation : NUSA PENIDACapacity : 3x85 kWStatus : Existing owned by PLNEAST NUSATENGGARALocation: LEMBATACapacity : 200 kWpStatus : Operation on Sept 2011

Development of Renewable EnergyE L E C T R I C I T Y F O R A B E T T E R L I F ETAHUNNo Pembangkit - EBT Satuan2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TOTAL1 PLTMH MW 23 37 198 126 46 193 203 214 225 235 15002 PLT Surya MWp*) 2 30 50 60 70 70 75 75 80 80 5923 PLT Bayu MW 0 0 10 10 15 15 20 20 25 25 1404 PLT Biomass MW 16 33 35 35 35 40 40 45 45 50 3745 PLT Kelautan MW 0 0 2 0 0 5 5 5 5 5 276 PLT Bio-Fuel MW**) - 10 15 15 14 8 7 7 8 9 937 PLT Gas-Batubara MW 6 32 81 43 22 7 22 14 6 10 243TOTAL MW 47 142 391 289 202 338 372 380 394 414 2,969Source : RUPTL 2011-202012

Masterplan of Rural ElectrificationWhat is feasible for: PLTMH? PLTS communal ?13

Planning for Rural Electrification – Scoring System Approach [1/2]Special PolicyIs there any particular rural electrificationpolicy, such as obligation to electrify first alldistrict capitals, sub-district capitals andvillages of border areasVillages in district capital, sub-districtcapital or border areas are put into firstpriority without going through scoringsystemGrid extension vs IsolatedEvaluate whether electrification of a village ismore feasible by grid extension orisolated/micro grid, considering factors suchas degree of remoteness, grid extension plan,nature obstacles (conservation forest/areas,isolated islands, etc).Integration of Isolated System into GridEvaluate when the isolated system can beintegrated into grid, by looking at griddevelopment planPriority scoringBy using transparent scoring system, make apriority list of villages

RE Planning ProcessVillage DataCheck if a village status has been electrified or not,look up data from BPS Head Office/Regionregarding ER, population density, income and mainemploymentSocio-Culture Study• Study community needs (electricity for what purpose? )• Is there any special request from local gov, localparliament ?• Willingness to pay• Are they ‘satisfied’ if served using SHS ?Village Candidates• List of villages to be electrified but not givenpriority order yet• Methods of electrification has been selected:grid extension or isolated• Including integration of isolated system togridTechnical-Economic-Geographic Study• Learn existing grid data and grid development plan• Check existing supply• Ceck geographic conditions• Least-cost assesment to choose grid extensionoption or isolated system• If it is isolated system, is it communal or individual ?• If communal, what type of power plant ? Is there anylocal primary energy sources ?Village Priority Order•Priority scoring based on socio-culture aspect(40%), technical (40%) and economic (20%)•Check annual state budget allocation/ERtarget for RE•Villages in district capital, sub-district capitaland border areas are given highest priorityAnnual RE Program for 5 years ahead• Village name and coordinate• Network consruction, generation• Cost needed15

Micro Grid/Mini Grid Development by Private/CommunityE L E C T R I C I T Y F O R A B E T T E R L I F E• Participation of private/local community/cooperative is encouraged• Needs proper set of regulation• What makes such micro grid works and sustainable ?16

Feed In Tariff for Renewable Energy - Rural ElectrificationE L E C T R I C I T Y F O R A B E T T E R L I F E• MEMR Regulation Number 04 Year 2012 dated on 31 st January 2012 stipulatesfeed in tariff for renewable energy.• Feed in tariff :• Renewable energy in general : Rp 656,-/kWh xF for MV connection and Rp1.004,-/kWhxF for LV connection• Biomass and biogas : Rp 975,-/kWh for MV connection and Rp 1.325,-/kWh forLV connection.• Municipal waste based on zero waste : Rp 1.050,-/kWh for MV and Rp 1.398,-/kWh for LV• Municipal waste based on sanitary landfill : Rp 850,-/kWh for MV and Rp1.198,-/kWh for LV• F Factor : location specific adjustment rate (1 – 1.5)17

Current Progress in Renewable Energy Development for RuralE L E C T R I C I T Y F O R A B E T T E R L I F EIPP Mini Hydro2012IPPStatus Number Installed Capacity (kW)Operation 20 43,790Construction 42 158,408PPA 41 206,750MEMR Permit Process 49 186,034Proposal 31 157,342Total 183 752,324PLN Mini Hydro2012PLNStatus Number Installed Capacity (kW)Operation 104 120,280Construction 10 15,200FS 83 188,784Total 197 324,264• Biomass proposal : 27 location, 155 MW• Communal PV Plant : 857 location, 118.6 MW18

Renewable Energy Development for RE (State Budget – MEMR)E L E C T R I C I T Y F O R A B E T T E R L I F ENo Gen. Unit 2004 2005 2006 2007 2008 2009 2010 20111 MV kms 1.877 1.088 6.728 1.249 1.306 2.385 1.602 8.1982 LV kms 2.120 1.381 1.590 1.475 1.323 2.338 1.803 7.6153Dist.SwitchUnit/kVA1.089/46.745710/34.6851.152/57.560938/46.607921/44.8951274/76.165991/48.2205.047/3704 Mini HydroUnit/kW- 3/4022/2.4337/269 8/1909 13/1178 -4/9005 SHSUnit/kWp-1.422/71119.209/960,440.598/2.02937.279/1.86477.433/3871.65-6CentralisedPVUnit/kWp- - - 6/102 10/240--1/407 WindUnit/kW- 2/160 3/240 6/735 1/202 - -8 Diesel kW104/52.43048/25.350- - - - 45/16.0009 HybridUnit/kW- - - - 1/6 18/252 -19

Problems and Mitigation (1/2)E L E C T R I C I T Y F O R A B E T T E R L I F EProblems :• Budget increase from Rp 594 billion(2010) toRp3,2 triliun (2011).• Increasing number of procurement packagesfrom 340 packages (2010) to 1368 paket (2011)• Transition periods for implementation of Perpres54/2010 regarding goods and servicesprocurement• Stringent procedure for state budget application• Organisation readiness, HR, operational supportfor RE Task Force• Permit for distribution network passing protectedareas/forest• To reach last mile of villages which is becomingmore remote and remote :– Deteriorating losses and reliability– Investment increase but less customerMitigation :• Improving organisation to implement RE byestablishment of Construction Unit / P2K underPLN Distribution/Region Unit• Establish new procurement strategy :▫ Implementation of Perpres 54/2010▫▫▫Unit priceVendor readinessElectronic Procurement (LPSE)• Establishment of a separate procurement unitas mandated by Perpres 54/2010• Improvement of construction supervision atPLN Head Office and coordination for externalsupport• It is proposed that state budget is allowed to beused to procure Load Break Swicth/LBS andout going feeder for small scale power plant• Cheap and Save Electricity Program

Problems and Mitigation (1/2)E L E C T R I C I T Y F O R A B E T T E R L I F EProblems :• Late contractor performance will delay REprogress• Contractor working process and methodsMitigation :• Strict policy when choosing contractor

CHALLENGES AHEADE L E C T R I C I T Y F O R A B E T T E R L I F E• Vast geographical area of Indonesia• Support from government and society• Standardization• Managing expectation from stakeholder• Scoring priority• Investment allocation• Human resources22

E L E C T R I C I T Y F O R A B E T T E R L I F EThank You…23