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The Joint Crediting Mechanism Project Development Experiences in Indonesia Dicky Edwin Hindarto Head of Indonesia JCM Secretariat Indonesia Joint Crediting Mechanism Secretariat 1 2 April 2015 Workshop on “Joint Crediting Mechanism: Sharing Experiences in Indonesia” Thailand Greenhouse Gas Management Organization (TGO)

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The Joint Crediting Mechanism Project Development Experiences in Indonesia

Dicky Edwin Hindarto Head of Indonesia JCM Secretariat

Indonesia Joint Crediting Mechanism Secretariat

1

2 April 2015

Workshop on “Joint Crediting Mechanism: Sharing Experiences in Indonesia” Thailand Greenhouse Gas Management Organization (TGO)

1. Indonesia JCM project types based on the initiatives

2. The Indonesia JCM project types based on the project owner

3. The Indonesia JCM project based on technology

4. Energy efficient refrigerants to cold chain industry experience

5. Energy efficiency in convenient stores

6. Power generation by waste heat recovery in cement industry cases

Presentation structure

Indonesia JCM project types based on the initiatives

1. Initiatives from the Japanese side

• Japanese side submits a PIN to propose JCM FS to both government. • Both government will evaluate the PIN. • Usually they already have the specific technology and Japanese company to be introduced. • In the implementation stages, it is easy to deliver technology but sometimes very difficult to

get full understanding and supporting from Indonesian stakeholders. • In some cases the understanding of the Japanese companies to Indonesian business

circumstances are lower.

2. Initiatives from the Indonesian side

• Indonesian side submit a PIN to propose JCM FS to both government, if they don’t have a Japanese partner, the PIN will be uploaded in both JCM website.

• Both government will evaluate the PIN. • Usually they already have the specific project location and Indonesian candidate partners. • Easier to be implemented, and usually all of the project stakeholders have deep knowledge

on the current situation of Indonesian business and policies circumstances.

Indonesia JCM project types based on the project owner

1. Indonesian private sector entities

• Very flexible in terms of the project financing, most of them used their own money to implement the project. Now we are preparing the financing models for them.

• Lack of capabilities for the MRV as well as government regulations.

2. Indonesian state owned companies

• Must follow the Indonesian government regulation for the project financing and bidding processes.

• Asset transfer still a big problem for us to be solved, business to business approaches are suggested.

3. Indonesian local governments

• Must follow the Indonesian government regulation for the project financing and bidding processes.

• Lack of capabilities for the climate change knowledge and MRV.

Indonesia JCM project types based on the technology

1. Energy efficiency

• The emission reductions are very easy to be monitored. • But some of the methodologies are very difficult to be developed because of the reference emission. • Some of the project implementations are only ‘plug and play’.

2. Renewable energy

• We don’t have any methodology for renewable energy project yet , but we can use other countries’ methodologies (Palau and Mongolia).

• Seems very promising, but the challenges will be in the investment (especially for geothermal). • Double incentive issues (from JCM and Indonesia feed-in tariffs).

3. Forestry and land based

• Currently we don’t have any implementation project on forest and land based, but there are very high expectation that JCM will be a breakthrough for REDD+ implementation.

• Some of the FS results are feasible to be implemented, but Japanese side still consider for the investment as well as international negotiation result for REDD+.

• Currently we have informal consultation with Japanese side to develop the REDD+ methodology guideline as well as the methodologies.

Our city to city cooperation under the JCM

1. Surabaya-Kitakyushu

• The project activities are not only under the JCM scheme, but also beyond the JCM (culture, education, and waste disposal project).

• The JCM activities in Surabaya are still in FS stage, that consist of solid waste management, waste to energy, production of waste-based alternative fuel and raw materials for cement plants, and combined heat and power (CHP) for commercial buildings.

• We hope that by this year, at least one project, can be funded as a leap-frog project.

2. Bandung-Kawasaki

• Bandung and Kawasaki just started their sister city cooperation last year. • The FS has been done from last year that consists of LED for street lighting, energy efficiency in

commercial buildings, and biodigester waste management programs.

3. Batam-Yokohama

• Currently Batam and Yokohama are trying to develop their city to city cooperation. • This new cooperation will seek the opportunities to develop the activities of municipal waste to energy

management, energy efficiency in building, and transportation management.

Energy efficient refrigerants to cold chain industry (1/3)

• Project participants

Japan side: Mayekawa Manufacturing Co.

Indonesia side: PT Adib Global Food supplies

• Site locations: Bekasi and Karawang

• Expected GHG reductions: 213 tCO2/year in both locations

• Project description

High energy saving from the installation of advanced energy efficient non-fluorocarbon cooling system.

• Bekasi site: • Installed technology: Compressor (43 kW)and Intelligent Quick Freezer.

• By using Intelligent Quick Freezer, production capacity in Karawang site has increased from 2 tpd to 4 tpd.

• Karawang site: • Installed technology: Compressor (2x43 Kw)

• The chillers were used for the cooling room purposes.

• For Bekasi site 20% reduction of energy consumption is expected than the reference scenario.

Energy efficient refrigerants to cold chain industry (2/3)

1. The projects are relatively very smooth to be implemented.

2. Both parties, Japanese and Indonesian private companies, get their benefits. The project now attracting many similar entities to see and watch the new technology being implemented for the first time in Indonesia.

3. The project will be validated by the Indonesia TPE.

4. Indonesia JCM Secretariat still found that the capacity buildings should be done more properly and well planned.

5. Some private companies come to Indonesia JCM Secretariat to convey their interests to joint the JCM in the near future.

Energy efficient refrigerants to cold chain industry (3/3)

Energy efficiency in convenient stores (1/3)

• 13 stores of Lawson and Alfa Midi around Jakarta, Tangerang and Depok.

• Expected GHG reduction: 33.1 tCO2/store/year.

• 3 stores are already implemented.

• Technologies to be implemented: 1. CO2 refrigerant chillers;

2. LED lamps;

3. Inverter-controlled AC; and

4. In addition, photovoltaic power generation sytem on the store’s rooftop will be implemented.

Energy efficiency in convenient stores (2/3)

Walk-in Case Multi-Deck Cases

Reach-in Freezer 1.5kW Output Outdoor Unit

(CO2 refrigerant)

7.3kW Output Outdoor Unit

(CO2 refrigerant)

System Configuration for grocery stores

Possible Alternative(Natural refrigerants) Current refrigerants(HFCs)

CO2 Ammonia Isobutane R410A R404A

ODP 0 0 0 0 0

GWP 1 0 3 2090 3920

Flammability No Minor Yes No No

Toxicity No Yes No No No

Refrigerant Properties

• Less energy consumption is expected (16-25% energy saving was measured in Japan).

• Natural refrigerant (Zero ODP and low GWP (=1), as well as non-flammable and low toxicity

Energy efficiency in convenient stores (3/3)

1. Every technology has its own methodology. We develop 3 different methodologies for this project.

2. The projects are relatively very small, but it will bring very significant impact since the growth of the convenient stores is very fast in Indonesia.

3. The technologies are modern technologies, but the maintenance and operation are more simple than the common technologies.

4. Soon we will develop a dissemination activities to spread these knowledge to the commons stores and also households.

The waste heat recovery power generation in cement industry (1/3)

• PT Semen Indonesia Tbk (SMGR) began constructing the power plant by utilizing the exhaust gas (Waste Heat Recovery Power Generation / WHRPG) Tuban I - IV with a capacity of 30.4 MW.

• PT Semen Indonesia together with JFE Engineering, develop a project called "Power generation by waste heat recovery in cement industry". It is an IDR 680 billion (USD 52 million) project, which utilizes waste heat produced by the 4 kilns inside the factory to generate steam for the power generator.

• By this project, PT. Semen Indonesia can increase their factory energy efficiency while reducing the GHG emissions, each year up to 122,000 ton CO2 is expected to be reduced. By using waste heat recovery power generation technology, PT. Semen Indonesia also can save up to 85% of its electricity bill.

• The project now is in its design and procurement of main equipment stage. This project is expected to finish on December 2016 (RKA).

The waste heat recovery power generation in cement industry (2/3)

• The "Power generation by waste heat recovery in cement industry" is our biggest JCM project up to now.

• The project initiative came from Indonesia side, PT. Semen

Indonesia (Persero), together with the JFE Engineering from Japan they sent Project Idea Note (PIN) to the Indonesia government (before the JCM Secretariat was formed) to seek facilitation for the FS.

• The FS for this project had been done at 2012-2013, and the project started at 2014.

• We only need 1 (one) single methodology to support the project, compare to the Lawson Project that need 3 (three) methodologies and located at 13 (thirteen) different stores, this project is very simple to be monitored and managed.

The waste heat recovery power generation in cement industry (3/3)

• The waste heat recovery power generation is located in the centre of factory, between 4 kilns.

• PT. Semen Indonesia (Persero) relocated workshops and futsal field for Turbin & Generator location.

• The detail engineering design have been developed simultaneously with the site location preparation.

The sustainable development criteria for JCM projects will be applied (under discussion)

Environment Economic

Social

Technology

All of the projects are available at www.jcmindonesia.com

Indonesia JCM Secretariat

BUMN Building 18th floor, Jl. Medan Merdeka Selatan 13,

Jakarta

Website: www.jcmindonesia.com

Email: [email protected]

Thank you!

Terima kasih! Kob Khun Krap!