Energy from Biomass and Biogas in the AgroindustryEnergy from Biomass and Biogas in the AgroindustryEnergy from Biomass and Biogas in the AgroindustryEnergy from Biomass and Biogas in the AgroindustryConnecting to the Grid :Connecting to the Grid :Connecting to the Grid :Connecting to the Grid :

Administrative and Technical RequirementsAdministrative and Technical RequirementsAdministrative and Technical RequirementsAdministrative and Technical RequirementsFor Grid InterconnectionFor Grid InterconnectionFor Grid InterconnectionFor Grid Interconnection

Oleh

Ir. Djoko Winarno MM, IPUDirector of Renewable Energy & Primary Energy Indonesian Electrical Power Society

Jakarta , May 20, 2013

Electricity Law 30, 2009 and MEMR Regulation No.4 , 2012 created non-

utilyty small power program and industry...

TenderTenderDirect Direct

SelectionSelection

Direct Direct

AppointmentAppointment

• Power purchase from power generation which

utilize renewable energy, marginal gas, mine-

mouth coal and other local energy sources;

• Purchasing of excess power;

• Local electricity system in the crisis condition or

emergency of electricity supply; or.

• Expansion of IPP which has already operation at

the same location:

o Capacity ≤ existing

o Capacity > existing:

− more efficient technology

− environmental friendly

− accordance with the requirement of local

electricity system

• In the frame of energy

diversification for power generation

to non oil fuel.

• Addition of generation capacity on

the power plant which has already

operation in the same location, in

terms of in the same location there

are more than one of holder of

electricity provision business

license which is interested.

• Basically, entire

of power purchase

by the holder of

electricity

provision business

license conducted

through Tender,

except fulfill

condition of Direct

Selection and/or

Direct

Appointment.

INVESTMENT MECHANISM(Government Regulation No. 14/2012 on Activity of Electricity Provision Business)

Tata Cara Perizinan UPL ( Usaha Penyediaan Tenaga Listrik )

Tata Cara Perizinan UPL ( Usaha Penyediaan Tenaga Listrik )... Count

MINISTRY OF FINANCE REGULATION NUMBER 21/PMK.011/2010Regulation of tax and customs facility for renewable energy resources utilization activities

Income

Tax

FINANCIAL INSTRUMENTS

SUPPORT

Value

Added Tax

Value

Added Tax

• Reduced net income for

30% of total investment

• accelerated depreciation

• Imposition

of Income Tax on dividend p

aid

to Foreign Taxable at 10%

• compensation for losses in

certain circumstances

Exemptions of VAT for

Taxable Goods,

machinery and

equipment for RE

utilization (not

included spare parts)

Regulated in State

Annual Budget

Law and its

implementing

regulations

Import

Duty

Import

DutyTax Borne by

Government

Tax Borne by

Government

Exemptions for Import Duty

of

� Goods and Machinery

for development and

capital investment

� Capital Goods Imports

for construction and

development of electricity

industry

*) The facility can be utilized if:

1. Had executed the entire capital investment

2. Has been produced commercially

MINISTRY OF FINANCE REGULATION NUMBER 130/PMK.011/2011 CONCERNING ON PROVISION OF EXEMPTION FACILITIES OR REDUCTION OF INCOME TAX

can get facilities:

EXEMPTION OR REDUCTION OF

CORPORATE INCOME TAX

Minister of Finance may provide facilities Corporate Income Tax exemption or reduction for a period EXCEED

predetermined period of time

REDUCTION OF CORPORATE INCOME TAX

50% of Income Tax Payable for 2 tax yearh

After the end of Corporate Income Tax exemption facility

EXEMPTION OF CORPORATE INCOME TAX

5 - 10 tax year

CORPORATE CORPORATE

TAXPAYERSTAXPAYERS

• PIONEER INDUSTRIES

• Having a new investment plan min. IDR 1 trillion

• Placing funds in the Indonesian banking min 10% from the total capital investment plan

• Existed as ENTITY INDONESIA

• Industry of Basic Metals Manufacutre• Industry of Oil Refining and / or Basic Organic Chemicals

sourced from Oil and Natural Gas• Industry of Machinery

•• INDUSTRY OF RENEWABLE INDUSTRY OF RENEWABLE

RESOURCES FIELDRESOURCES FIELD• Industry of Communications Equipment

PIONEER INDUSTRIES

971 1.021 1.035 1.054 1.057

1.109

1.251

1.504 1.517 1.525 1.536 1.616

1.709

1.813

2.152

2.284 2.359 2.393

2.606 2.618

2.901

3.279

0

500

1.000

1.500

2.000

2.500

3.000

3.500

BPP rata-rata

Rp 1.251 /kWh

BPP Nasional : Pembangkitan: Rp 1.033/kWh, TT: Rp 1.096/kWh, TM: Rp 1.162/kWh, TR: Rp 1.328/kWh

COST OF PROVIDING PT PLN (PERSERO) YEAR 2011

di bawah

BPP Nasional

di atas

BPP Nasional

MEKANISME PENGEMBANGAN ENERGI TERBARUKAN

PLN mengajukan

persetujuan penunjukan

langsung ke Menteri

Calon Pengembang mengajukan proposal ke

PLNPLN setuju

Pengajuan penjualan TL

Persetujuan penunjukan

langsung oleh Menteri

Negosiasi harga jual beli

Tenaga listrik dan

Kesepakatan kontrak

Persetujuan Korporasi

Kontrak jual beli(PPA) Tenaga Listrik

Pengembang mengajukan Permohonan IUKU

Pengembang mengajukan Permohonan IUKU

Sementara

Persetujuan Harga jual

Listrik

Oleh Menteri *)

Note:

*) Harga jual yang tidak melebihi

ketentuan Permen 31/2009 tidak

memerlukan persetujuan harga

dari Menteri

Flow Chart Direct Appointment Method (1)

Flow Chart Direct Appointment Method (2)

Time Schedule Process PPA for Biomass Power Plant

TIMELINE PPA

Pokok – Pokok PPA (1)

No Subyek PPA

1 Sifat PPA Take-or-pay PPA, dengan opsi untuk membeli proyek pada akhir

masa kontrak. Walaupun IPP mempunyai take-or-pay PPA

contract, risiko off-taker PLN masih ada (non-payment risk,

political risk)

2 Periode PPA + /- 25 tahun, tidak termasuk masa satu tahun untuk pencapaian

financial close dan untuk pekerjaan konstruksi

3 Availability Factor + 80%, setelah Project COD

+ 50%, setelah Unit COD

4 PPA Tariff Dalam rupiah, terdiri dari 5 komponen

A: capital cost recovery

B: biaya tetap O&M

C: biaya bahan bakar

D: biaya variabel O&M

E: capital cost recovery untuk Special Facilities

(jaringan transmisi dan GITET)

5 Project security Escrow account sesudah PPA signing

Bank Guarantee saat PPA signing

Bank Guarantee II saat financial close

Pokok – Pokok PPA (2)

No Subyek PPA

6 Pasokan batubara Pengadaan oleh IPP dengan persetujuan PLN Harga batubara di-

pass-through ke PLN

7 Liquidated damage Denda keterlambatan COD di-cap

8 Grace period on FM 2 + 7 hari (selama operasi)

48 jam (untuk net dependable capacity test)

9 Pengadaan lahan Dilakukan oleh IPP, PLN membantu koordinasi dan sosialisasi

dengan masyarakat dan pemerintah daerah

10 Deemed Commissioning Natural FM pada PLN atau political FM pada IPP dan PLN yang

mengganggu commissioning diperlakukan sebagai deemed

commissioning

11 Deemed Dispatch Natural FM pada PLN atau political FM pada IPP dan PLN yang

menggangu operasi diperlakukan sebagai deemed dispatch

12 Termination Right PLN Event of default dan prolonged political FM memberikan IPP

Termination Right. Rumus: net present value dari pembayaran

komponen A dan E plus outstanding debt and interest plus EPC

termination cost

INVESTMENT LICENSE

INVESTMENT LICENSE .... Count

CRITICAL ISSUES : CURRENT EXPERIENCES

CRITICAL ISSUES : CURRENT EXPERIENCES

CRITICAL ISSUES : CURRENT EXPERIENCES

THANK YOUTHANK YOUTHANK YOUTHANK YOU

JS Luwansa Hotel & Convention Centre

Jl. HR. Rasuna Said Kav. C 22, Kuningan

Jakarta, Indonesia

ATTACHMENT