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Jakarta , 17 July 2012

Readiness of PLN to Utilize Renewable Energy (Capacity,

Bankable Power Purchase Agreement and Feasibility Study,

Pricing)

PT PLN (Persero)

PT PLN ( Persero )

EBTKE – CONEX 2012

PLN has been ready since quite long time. PLN has a long history in using greenenergy for its electricity generation especially as PLN project.

How about IPP’s Project?• Great opportunity for private to make a PPA with PLN in IPP Schemes, RE or

Non RE• Data said that very low success ratio of IPPs project compared to PLN project

and the problem is not the readiness o PLN• Readiness of PLN in not necessary for questioned and has been realised by:

o Stated on RUPTL (RE is priority nor leas cost)o Consistenly support the goverment policieso Support the IPP project : entertaint the IPP developer when required

for continuation the project

Utilizing RE for Electricity, is PLN ready?

Gas

Geothermal

LNG

HSD MFO

Coal

IPPs project, front (study) to end (electricity delivered)

• Study (Preliminary, Pra FS, FS) : dev. responsibility technical (duration & quality) andfinancial

• Permits : government (local, forestry, MeMR) permits and approval

• Procurement : Pricing and PPA

• Financial Closing : equity and loan

• Construction : developer responsibility technical (duration and quality) and financial

• Operation : developer responsibility technical (O/M) and financial

PLN has an intensive involvement only in procurement (pricing and PPA)

PLN concern to capacity, energy production, energy price, availability and continuity

Pricing for RE, PLN implements the government regulation (FIT or B 2 B) and PPA is negotionable

Pricing and PPA are not main problem, main constraint generally due to permits and internaldeveloper (capability in technical and financial)

Are the PPA and Pricing as the main problem?

2

Gas

Geothermal

LNG

HSD MFO

Coal

IPP for MHEPP status

3

Number Installed Capacity (kW) Number Installed Capacity (kW)

Indonesia Barat 67 398,731

Operasi 7 21,095 7 21,095

Konstruksi 10 71,868 17 92,963

PPA 19 137,900 36 230,863

Ijin ESDM 15 68,210 51 299,073

Proposal 16 99,658 67 398,731

Indonesia Timur 48 162,770

Operasi 8 26,340 8 26,340

Konstruksi 19 62,600 27 88,940

PPA 5 12,550 32 101,490

Ijin ESDM 12 49,980 44 151,470

Proposal 4 11,300 48 162,770

Jawa Bali 68 214,119

Operasi 8 2,055 8 2,055

Konstruksi 12 26,210 20 28,265

PPA 10 38,570 30 66,835

Ijin ESDM 27 109,434 57 176,269

Proposal 11 37,850 68 214,119

Total Indonesia 183 775,620

Total Operasi 23 49,490 23 49,490

Total Konstruksi 41 160,678 64 210,168

Total PPA 34 189,020 98 399,188

Total Ijin ESDM 54 227,624 152 626,812

Total Proposal 31 148,808 183 775,620

IPP CumulativeRegion

REKAPITULASI STATUS PLTM IPP

12 Juli 2012

IPP for MHEPP

• Total PPA : 98

• Construction/FC : 41

• Operated : 23

F/C problem : 11

Construction problem : 14

Gas

Geothermal

LNG

HSD MFO

Coal

IPP Geothermal status

4

MODEL PENGEMBANGAN

SESUAI PERMEN ESDM 01/2012

PIC PROBLEMSJUMLAH PROYEK

TOTAL KAPASITAS

(MW)

PLTP PLN (EKSPLORASI DAN PENDANAAN) 1 20 PLN TULEHU

PLTP PLN (HILIR)-PGE (HULU) 4 300 PLN, PGEHULULAIS, S. PENUH, KOTAMOBAGU(TEHNICAL AND PERMITS PROBLEM)

PLTP IPP - KONTRUKSI / FC SELESAI 2 170 DEVELOPER PATUHA UNIT 1, ULUBELU 3 & 4

PLTP EKSTENSION/WKP EXISTING SIAP IMPLEMENTASI

8 1115DEVELOPER

, PLN

• LUMUT BALAI, LAHENDONG 5 & 6, KARAHA BODAS 1, KAMOJANG 5 (F/C DELAY)

• W. WINDU (PERMITS, TECHNICAL AND PRICING)

• SARULLA I (JOC)

• DIENG 2&3 (PRICING)

• PATUHA 2 & 3 (TECHNICAL)

• CIBUNI (LEGAL INTERNAL DEV)

PLTP WKP EXISTING MENUNGGU PROPOSAL / BELUM EKSPLORASI

3 395 DEVELOPER

• KARAHA BODAS 2&3, KAMOJANG 6 (PERMITS)

• T. PERAHU II (TECHNICAL AND PRICING)

• I.ARGOPURO (PERMITS AND TECHNICAL)

• SARULLA II (TECHNICAL)

Gas

Geothermal

LNG

HSD MFO

Coal

IPP Geothermal status

5

MODEL

SESUAI PERMEN ESDM 01/2012

PIC PROBLEMSJUMLAH PROYEK

TOTAL KAPASITAS

(MW)

PLTP WKP BARU ESC/PPA SELESAI 3 445 DEVELOPERATADEI, MUARALABOH, RAJABASA(EXPLORASI, F/C)

PLTP WKP BARU (SURAT PENUGASAN SDH TERBIT DALAM PROSES/NEGOSIASI ESC/PPA)

13 1515DEVELOPER

, PLN

• SOKORIA, T.PERAHU I, C.CISUKARAME, TAMPOMAS (PRICING)

• GUCI, R.DADAP, BATURADEN, NGEBEL, R.DANO, UNGARAN, SUOH SEKINCAU, S.MERAPI, JABOI (PPA PROCESS)

PLTP WKP BARU (PROSES PENERBITAN SURAT PENUGASAN)

3 140 KESDM JAILOLO, HU’U, IJEN

PLTP WKP BARU (IUP BELUM TERBIT/TENDER PEMDA BELUM SELESAI)

14 825 PEMDA

S.AGAM, D.RANAU, BONJOL, SIPOHOLON, S.SAMOSIR, WAY RATAI, GN. ENDUT, U.TELOMOYO, GN. CEREMAI, SEMBALUN, BORA, S. WAYAUA, MERANA/MASAINGI, MATALOKO

TOTAL 51 4925

From total of 51 projects :

• Pricing problem faced by only 7 projects

• PPA process : 9 project

Gas

Geothermal

LNG

HSD MFO

Coal

PLN has entertaint IPP projects, which had faced financial problem due to problems ofdevelopers scope. Renegociate the increasing price :

• 2009 – 2011 : 25 IPP and 15 have been ammended

• 2011 – 2012 : 6 IPP and 2 have been ammended

Preliminary evaluation : after ammended with better price less than 50% of “IPP terkenda”demonstrate promising progress.

Lesson :

Price is not main problem

Higher price does not guarantee the successful of the project

Higher price in some cases invite other stakeholder (brokers etc.), the incentives do not go tothe right stake holder (profesional developers)

Unsuccess story on “IPP terkendala”

6

Government (central and local) support required:• Establish clear and harmonic regulation• Commit to proceed issues regarding permission certainly and progresively• Sinergic relationship between central and local government• Controling (monitor and supervise) the progress of RE development• Facilitating to enhance technical, financial and social aspect

Private Iniciatives required:• Preparing internal capability (technical & financial) seriously• Commit to undertake each steps of development inline / meet the

regulation and PPA including procedure, cost, schedule and quality• Profesional communication with other stake holder especially government

and buyer/PLN

Government Support and Private Iniciative

Thank you

8

Gas

Geothermal

LNG

HSD MFO

Coal

IPP Geothermal status

9

MODEL

SESUAI PERMEN ESDM 01/2012

PIC PROBLEMSJUMLAH PROYEK

TOTAL KAPASITAS

(MW)

PLTP WKP BARU ESC/PPA SELESAI 3 445 DEVELOPERATADEI, MUARALABOH, RAJABASA(EXPLORASI, PERMITS, F/C)

PLTP WKP BARU (SURAT PENUGASAN SDH TERBIT DALAM PROSES/NEGOSIASI ESC/PPA)

13 1515DEVELOPER

, PLN

• SOKORIA, T.PERAHU I, C.CISUKARAME, TAMPOMAS (PRICING)

• GUCI, R.DADAP, BATURADEN, NGEBEL, R.DANO, UNGARAN, SUOH SEKINCAU, S.MERAPI, JABOI

PLTP WKP BARU (PROSES PENERBITAN SURAT PENUGASAN)

3 140 KESDM JAILOLO, HU’U, IJEN

PLTP WKP BARU (IUP BELUM TERBIT/TENDER PEMDA BELUM SELESAI)

14 825 PEMDA

S.AGAM, D.RANAU, BONJOL, SIPOHOLON, S.SAMOSIR, WAY RATAI, GN. ENDUT, U.TELOMOYO, GN. CEREMAI, SEMBALUN, BORA, S. WAYAUA, MERANA/MASAINGI, MATALOKO

TOTAL 51 4925

Existing Total Capacity 34,928 MW

Generation Capacity (type and ownership) 2011

2.756

2.871

8.112

12.170

3.503

440

130

477

285

3.142

347

695

0 2.000 4.000 6.000 8.000 10.000 12.000 14.000

Diesel PP

GTPP

CCPP

Coal STPP

HEPP

Geothermal

IPP (MW) PLN (MW)

Share of RE in National Installed Capacity and Electricity Produced

Fuel oil, 23.%

Hydro, 7%

Nat.Gas, 21%

Coal, 44%

Geothermal and

other, 5.%

National (PLN+ IPP) installed

capacity power plant (RE 14%)

Electricity generated based on

primary energy (RE 12%)

Fuel Mix Projection 2011-2020 (in percentages)

Gas

Geothermal

Hydro

LNGHSD

MFO

Coal

Share of RE plan to increase from 11 % (2011) to 18 % ( 2020 )

6% 6% 6% 5% 5% 6% 6% 6% 6% 6%

5% 4% 4% 5% 8% 8% 10% 11% 12% 12%

50% 54%

61% 63%63%

64%64%

65% 64% 64%

17%

21%

21%19% 17% 15% 12% 8% 8% 8%

0%

4%

3%5% 6% 5% 7% 9% 9% 8%

5%

2%

1.1%0% 0% 0% 0% 0% 0% 0%

16.12%

8.57%3.93%

1.81% 0.99% 0.88% 0.77% 0.70% 0.70% 0.71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Impor Biomass Surya/Hybrid HSD MFO LNG Gas Batubara Geothermal Hydro

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

GW

h

Impor Biomass Surya/Hybrid HSD MFO LNG Gas Batubara Geothermal Hydro

MW

1313

4,477

5,372

4,283

2,357 2,254 1,992 1,780 1,718

3,019

4,102

1,106

1,505

688

1,917

3,690

5,172

4,656

2,463

2,015

780

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

IPP

PLN

• Total : 55,345 MW ( 31.353 MW of PLN and

23,993 MW of IPP)

• About 5.500 MW/year additional capacity

5,583

6,877

4,971

4,271

5,941

7,164

6,436

4,181

5,034 4,882

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

PLTU PLTA PLTP PLTGU PLTG PLT Lain Total

Power Plant Capacity Development Plan (2011-2020)

• CFPP : 35,573 MW

• M/HPP : 5,723 MW

• GPP : 6,247 MW

• CCPP : 3,263 MW

• GTPP : 4,093 MW

• Others : 441 MW

• Total : 55,345 MW

MW

14

RE Potential and Development Plan

NORENEWABLE

TYPEPOTENCY

INSTALLED

CAPACITY

ADDITIONAL CAPACITY PROGRAM(2011-2020)

1 Hydro power 75.670 MW 5.705 MW 5222 MW

2 Geothermal 29.038 MW 1.209 MW 6247 MW

3 Mini/Micro Hydro 769 MW 218 MW 501 MW

4 Biomass 49.810 MW 61 MW 374 MW

5 Solar power 4,80 kWh/m2/day 13,5 MW 592 MW

6 Wind power3 – 6 m/s (9.290

MW)1,87 MW 140 MW

Source : RIPEBAT 2010-2025 updated from multiple sources and RUPTL 2011-2020