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RENEWABLE ENERGY PROJECT DEVELOPMENT By Team CASINDO WNT Mataram, 27 February 2011 Technical Working Group IV
RENEWABLE ENERGY PROJECT DEVELOPMENT
By Team CASINDO WNTMataram, 27 February 2011
Technical Working Group IV
Progress TWG IV
Site Visit to Identified some potential location(Together with TWG II) to have general informationabout potential energy resource, social economy,and energy consumption.
Selection of suitable target community:‐ there are potential energy resources (solar,hydro, biogas)
‐ Participation of the community
Progress TWG IV
Energy need assessment:
Lighting:kerosene, average ± 2litres/month
Electricity : PV solar (100 households) → CSR PLN
Electricity : micro hydro (± 110 households) → Community
Cooking:• Kerosene
• Firewood
Possible technology chosen : Biogas
Section 2: Market Analysis
Geographic Map of Selected Location
Administrative AuthorityThe village “Jeruk Manis” is located in thedistrict Sikur, East Lombok, West NusaTenggara province.
Geographically located at 080 34 '21.50 "North and 1160 25' 22.17" East.
This location is ± 54 km east of Mataram andis accessible using two wheelers and four‐wheel with a travel time of about 90 minutes.
Natural Endowment of the Areas
• This area has abundant naturalresources, such as protected forests,springs, waterfalls, rice fields, flora andfauna.
• The total area of the village of "JerukManis" is estimated at 14 km2, withrainfall levels of 3,000 mm per year andaverage air temperature of 30 degreesCelsius.
Demographic Profile
Village/Sub VillagePopulation
HouseholdMale Female Total
Jeruk Manis (total) 991 1.042 2.033 762Barang Panas 303 320 623 237
Kebun Baru 310 315 625 240Gawah Buak 378 407 785 284
Source: Data villagers Jeruk Manis in October 2010
Family Structure and Size
Size of household Percent (%)1. – 3 person 304 – 6 person 62
> 7 person 8Source: Data villagers Jeruk Manis in October 2010
Age structure (year) Percent (%)Children & adolescents : < 17 tahun 25Adult : 18 s/d 50 tahunElderly : > 50 tahun
769
Source: Data villagers Jeruk Manis in October 2010
Educational Profile
VillageNumber of Educational Facilities
Elementary Junior High School High School
Jeruk Manis 2 1 -
VillageNumber of villagers with completed schooling
High School D 2 D 3 S1Jeruk Manis 186 2 2 7
VillageNumber of students currently enrolled in schools
Elementary school
Junior high school High school University
Jeruk Manis 114 118 - -
Economic Profile
• The unemployment rate in this region reached20‐25%.
• Villagers of "Jeruk Manis" mainly work in thesectors of agriculture, commerce,government, and local handicrafts industry.
VillageEmployment sectors
Farmer Trade Government CraftsmanJeruk Manis 391 32 5 40
Source: Data villagers Jeruk Manis in October 2010
Average household income is IDR 5.291.222,00 per year or IDR. 440.935,00 per month
Average household expenditure for food,energy and school fees is 4.583.916,00 IDR peryear or 381. 993,00 IDR per month(Source: Need assesment questionnaire)
Energy Profile From the energy needs survey (100 respondent),the following energy use patterns emerged:
the types of energy used for cooking arefirewood and kerosene,
energy for lighting are kerosene andelectricity,
energy for vehicles is gasoline.
Energy expenditures per fuel type
Energy service Fuel type Average monthly
consumption
Average cost(in IDR, at the
time of writing)
Total monthly cost
Cooking wood 18,6 bundle IDR 0 IDR 0
Cooking kerosene stove
- IDR 6.000 IDR 0
Lighting kerosene lamp
13,37 litre IDR 6.000 per litre
IDR 80.220
Lighting Electricity 0,84 kWh + (from microhydro)
IDR 10.000 per month
IDR 10.000
Current energy provision
Type of energy Energy supply (bundle/litre/watthour) Remark
Wood 18,6 x 762 families per month cooking
Kerosene ± 10, 187 kilolitre per month lightingElectricity (solar-battery) 650 Wp x 8 hour x 30 day lighting
Electricity (micro-hydro) 18 kW x 12 hour x 30 day lighting
Total demand for the proposed technology
The total demand for energy in the village of"Jeruk Manis" comes from 762 households.
Conducting a survey for 100 families who havecows.
Number of households that are eligible to beselected as the target of the program were 40families or households.
Section 3: Product or Service DescriptionProduct : BIRU (Biogas Rumah or Domestic Biogas)
BIRU Program are managed and implemented by HIVOS andSNV. Both are from the Dutch development agency, andfunded by the Embassy of the Kingdom of the Netherlandsand supported by the Directorate General of Electricity andEnergy Utilization of Ministry of Energy and MineralResources.
The BIRU program promotes the use of biogas to fulfill thedaily needs of fuel for cooking. Meeting the family cookingfuel needs with biogas is very satisfying, it can replace the roleof firewood or kerosene.
BIRU meets with the Current Local policy. “BumiSejuta Sapi” One Million Cows Population in WNTprovince.
Biogas technology provides many benefits to itsusers, even when compared with other technologies.
Biogas development contributes to povertyreduction and strengthening the resilience oflivelihoods. In addition, the approaches undertakenby BIRU in the program have a broad effect of healthconditions and job creation as well as the localeconomy.
Technology DescriptionThe reactor used by BIRU has six components: 1) inlet that serves as a mixing room for the
entry of animal manure, 2) reactor that serves as the anaerobic
decomposition chamber, 3) gas container, storage space, 4) outlet which serves as a space divider, 5) the gas transporter room, and 6) hole deposition as a place to rest processed
biogas reactor
Diagram of Installation of Biogas Reactors
The Technical Design of Biogas Reactor
Configuration, Sizes & Lifetime
The model used is based on the model ofcement biogas digester in Nepal (SNIIndonesia).
The household size reactors can be of 4,6, 8, 10, 12 m3.
With proper care, biogas reactors areexpected to stay safe for 20 ‐ 30 years.
Technology’s Track Record
BIRU program started in 2009, and in early2010 had built a total of 100 digesters in Java.
In July 2010, the BIRU (Domestic Biogas)courses started running in West NusaTenggara (WNT). By December 2010, theprogram has been able to build about 84 unitsof biogas reactors on Lombok Island.
Cost of a Biogas Installation and Financing Options
Sizes (m3) 4 6 8 10 12Cows 3 4-5 6 7-8 9Total kg of manure per day 30 45 60 75 90Gas produced (m3) 1 1,5 2 2,5 3Duration of use to stove (hour) 4 6 8 10 12
Construction cost (IDR million) 5,7 6,3 7 8 8,8
Subsidies from Hivos(IDR million) 2 2 2 2 2
The cost to be paid (IDR million) 3,7 4,3 5 6 6,8
Maintenance Requirements
BIRU biogas reactor has a standard in the constructioni.e. standard materials, standard work processes,standards builders and supervisors, the standard wayof working, and management standards.So when the construction of biogas reactors is inaccordance with these standards, special maintenanceis not required.Usually maintenance is maintenance performed on theleakage of the reactor that is guaranteed for 3 years,maintenance of the supporting component (stove,pipe, main valve, hose, etc.) that are guaranteed forone year.
Construction ProcessThe construction process begins with designingthe construction area, then dig the groundaccording to the size of the reactor to be built.Next are the hardening of the foundation andbasic reactor dome, the building inlet, enteringthe soil to form a dome construction, put thedome in accordance with the standards andmixed in the ratio 1: 2: 3, build outlets, andinstall other components such as pipelines,where bio‐slurry . After the dome is finishedcasted and dried.
Construction Process
Availability of Skilled Builders
In every area of work, BIRU carries outtraining for local builders to create biogasreactor from a professional trainer.
The goal is to have in each work areaprofessional local builders who have ID cards.
In Lombok, BIRU has 31 professional buildersand 9 supervisors.
Economic BenefitsStrengthen the integration of agriculture and cattle breeding for theimprovement of agricultural resources
Creating jobs in the biogas construction sector
Strengthen food security by improving agricultural output through theuse of biogas slurry
Empowering women by providing opportunities in the nationaldomestic biogas program as an operator of biogas engines, lights, andrefrigerator.
Reducing deforestation
Controlling greenhouse gas emissions from livestock and organicwaste disposal
Recycling of nutrients and restore soil fertility
Promoting environmental awareness and link it to economicadvantage
Social BenefitsReducing the burden of women to collect firewoodand facilitates alternative additional activities to fillthe time available.
Improving access to sanitation and to reduce diseasesassociated with poor sanitation.
Reducing air pollution from smoke, which is closelyrelated to respiratory diseases, eye infections, andaccidental fires accidents due to the use of fire inopen space.
Improving sanitation and hygiene education.
Section 4: Regulatory setting
There are several relevant policies onnational, regional or local level influencingthe BIRU program in WNT province i.e :
Policies / ProgramsPolicies / Programs
Policy objectives Implementation Policy objective likely to be achievedMain obj. Secondary obj. To date Future
National level :Substitution of kerosene with LPG;Phase-out subsidy for kerosene & provide (free of charge) LPG system to the poor.
Lower the cost of subsidizing fuel (for the government)
To reserve the kerosene for use in transport (instead of cooking); to support the use of gas, which is the more abundant fuel in Indonesia
In Lombok, this measure should start in 2010 with 500 000 households.
Will likely be fully implemented
Yes, in the longer term it will cost the government less to subsidize gas than it would cost to keep subsidizing kerosene.
Regional or local level :Self-sustain energy village (Desa Mandiri Energi): 60% of the community energy needs is provided by local resources
To provide energy supply for underdevelop communities , to diversify energy source, to introduce productive activity, increase job opportunities.
To reduce fuel oil 20 target location of DME until 2013
Will be implemented
Mixed result
A million cows and buffalo BSSK)
Program acceleration the development of animal farms with more priority to the empowerment of local resources with the aim that as soon as possible to achieve the optimum population in accordance with the carrying capacity of the region.
o Rural income, meet the needs of national meat.
o Meets the demand for cows for other regions.
o Meet the needs of meat consumption in the region
One million cows and buffalo population in 2012
Will be implemented
Section 5: Project Management
Project Champion : Mr. Umar (Coordinator of the BIRU program in Lombok, WNT)
The motivations of BIRU program
Strengthen the integration of agriculture andcattle breeding for the improvement ofagricultural resourcesCreating jobs in the construction sector biogasImproving access to sanitation and to reducediseases associated with poor sanitationStrengthen food security by improvingagricultural output through the use of biogasslurry
Description of the Project TeamBIRU program is managed and implemented byHIVOS and SNV.BIRU representatives in Jeruk Manis village thatconsists of a Coordinator, Audit Quality, andPromotion staff.As an executive in the field in cooperation withconstruction partner organization (CPO) fromNGOs namely YM3S. The CPO has a supervisorand professional builders.The Casindo Team conducting pre‐preparationand socialization in Jeruk Manis village.
Organisation of the Project
BIRU (Biogas Rumah)
Construction Partner Organisation (YM3S)
TURMUZISupervisor
Mr. UMARCoordinator BIRU
Lombok
CASINDO Project
M. ALI IKHSANPromotion Staff
USER
ABDUL NATSIRPIC TWG IV
Section 6: Technical FeasibilityInput requirementsCattle dung 20‐30 kg per day (at least 3 cows) for a biogas reactor of 4 m3 and the availability of adequate water for manure and water ratio (1: 1).
Space requirements
Sizes (M3) 4 6 8 10 12
Space requirement (M x M) (3 x 6) (3,5 x 7) 4 x 8 4,5 x 9 5 x 10
Other requirementsMaximum allowed distance is 200 metersbetween biogas reactor with a kitchen.
Closest distance ever is 12 meters, but in theimplementation of the reactor can be doneunder the kitchen.
Biogas reactor can work at ambienttemperature, best at a temperature of 35oC.
Output
Biogas reactor to produce gas that has a gaspressure of 80 cm of water. min 55 cm waterpressure, 2 days after full charging has begunto burn, and cook with blue flame and fasterthan kerosene stove.Consumers needs fuel that: 1) cheap, and easyto cook on, 2) saves time (no need to searchfor firewood, not lining up to buy kerosene), 3)safe when used against explosion, 4) clean andhealthy, and 5) increase family welfare.
Section 7: Financial AnalysesCapital costs (are Planning and Construction orPre‐operation costs)
Biogas digester to be installed in the village"Jeruk Manis" is estimated as many as 40 unitsto be built during 4 years, so it will build 10units each year.
BIRU program is covering the planning andpre‐operational cost including final engineringdesign and also worker training.
Capital Costs
Planning Costs Year 0P1 Obtaining all permits - 0P2 Technical analysis - 0
Subtotal 0TOTAL all years - 0
Operating CostsNumber of biogas digester will be installed inJeruk Manis village is 40 units, so can beestimated that will installed 10 unit each year
Year 1 2 3 4 TotalNumber of digester (unit) 10 10 10 10 40
OPERATING COSTS Year 1 Year 2 Year 3 Year 41 General and Administrative Costs 7.000.000 7.000.000 7.000.000 7.000.000
2 Labor costs 10.650.000 10.650.000 10.650.000 10.650.000
3 Material costs 34.670.000 34.670.000 34.670.000 34.670.000
TOTAL 52.320.000 52.320.000 52.320.000 52.320.000
Installation of digester depend on totaldemand installed and speed ofconstruction.
The total demand depend onsocialization and financial possibility.
General and administrative cost consistmaintanance and construction fee.
Grants and Subsidies
BIRU program will give subsidies 2 million IDR toconsumen if their installing the biogas digester.
Grants and Subsidies Year 0 Year 1 Year 2 Year 3 Year 4
1 Casindo Pre-operation support 10.000.000 10.000.000 10.000.000 10.000.000
2 Hivos Grant 20.000.000 20.000.000 20.000.000 20.000.000
Subtotal - 30.000.000 30.000.000 30.000.000 30.000.000
TOTAL all years 120.000.000
RevenuesRevenues represent what customers areexpected to pay for goods and services offered.
Revenues Year 1 Year 2 Year 3 Year 4
R1 Revenue from 1 32.320.000 32.320.000 32.320.000 32.320.000 Units 10 10 10 10 Revenue per Unit 3.232.000 3.232.000 3.232.000 3.232.000
R2 Revenue from 2UnitsRevenue per Unit
REVENUES 32.320.000 32.320.000 32.320.000 32.320.000
Cash Flow
The Cash Flow Projection (and analysis) is oneof the most important parts of the businessplan. It shows how cash is expected to flow inand out of your project, summarizing theexpected costs, revenues and differencebetween them.A Cash Flow Projection will give you a muchbetter idea of how much investment your ideaneeds.
TOTALSYear
0
Year 1 Year 2 Year 3 Year 4
COSTS (& GRANTS/SUBSIDIES) 2010 2011 2012 2013 2014Capital Cost Cc 0,0 0,0 0,0 0,0 0,0Capital / pre-operation grants Gc 0,0 0,0 0,0 0,0 0,0
Operating costs Co 0,0 52.320.000,052.320.00
0,0 52.320.000,0 52.320.000,0
Operating grants Go 0,0 20.000.000,020.000.00
0,0 20.000.000,0 20.000.000,0
TOTAL COSTS TC = (Cc-Gc)+(Co-Go) 0,0 32.320.000,032.320.00
0,0 32.320.000,0 32.320.000,0
NPV TOTAL COSTS (discount rate = 12%)
NPV TC = TC / (1+disc rate)t; t = year of operation 12% 98.167.130,9 0,0 28.857.142,9
25.765.306,1 23.004.737,6 20.539.944,3
BENEFITS
Revenues R 0,0 32.320.000,032.320.00
0,0 32.320.000,0 32.320.000,0
NPV revenues
NPV R = R / (1+disc rate)t; t = year of operation 12% 98.167.130,9 0,0 28.857.142,9
25.765.306,1 23.004.737,6 20.539.944,3
InterestTaxesDepreciation
NET INCOME NIt = Rt -TCt 0,0 0,0 0,0 0,0 0,0Accumulated Income* AIt = AIt-1 + NIt 0,0 0,0 0,0 0,0 0,0
NPV NET INCOME
NPV NI = NI / (1+disc rate)t; t = year of operation 12% 0,0 0,0 0,0 0,0 0,0 0,0
Benefit/cost RatioB/C ratio = NPV R / NPV TC 1,000
Section 8: Risk AnalysisCompletion RiskThere are several possibilities that cause delays in theconstruction of biogas digester, although funds wereavailable include:The price of very significant material in the biogasdigester construction rose sharply as rising cementprices.The unavailability of skilled builder, skilled builder arethere to get another job that is more promising (cost oflabour is higher) compared with standard from HIVOS.CPO or HIVOS late responding to users who areinterested to build a biogas digester.
Technology RiskBIRU program has built 84 biogas digester spread in manyvillages (December, 2010). Based on information from theCoordinator and promotion staff BIRU program Lombokentirely to function properly. So could be said that BIRUprogram 100% successful to build biogas digester and operateproperly on the Lombok island.
In the implementation BIRU program in Lombok ever hadproblems for 1 user. Biogas digester construction goes well,when inserted cow manure for 7 days into the digester did notproduce gas. Then the evaluation to the construction ofdigester and cow manure reissued, The next to be checkedagainst leakage digester and re‐enter the new dirt (dirt doesnot mix the soil), then in 2‐3 days biogas digester functionproperly as shown by producing a blue flame. Apparently thatcow dung must not be mixed with the soil because it causes
Supply Risk
The material to build a biogas digesteravailable adequate much around the location,so there is no risk of material supply.
Things may have happened to BIRU programLombok is delay of delivery of componentbiogas stoves. Biogas stove imported fromoutside the area (Bandung) and thus require along time.
Economic Risk
People in village can not the pay biogasdigester, because the price to build a biogasdigester is 3 million more. Average income permonth of the villagers "Jeruk Manis" is verylow, so it is not possible to build biogasdigester.
Financial riskOccurs either when variable interest rates areused, refinancing of the project is assumedsometime during its life or additionalfinancing is required in the future.
Changes in interest rates would cause financialrisks occur. Based on historical growth rate isthat interest rates in Indonesia are relativelystable (constant) so that very small risk causedby interest rates.
Political RiskPolitical issues at the regional level WNT did not resultin changes in rules and regulations in theimplementation of the BIRU program in Lombok.Instead the local government is support in theimplementation of the biogas digester, because thegovernment's main issue now is the utilizationrenewable energy.In addition, local governments have a program is onemillion cows population (BSS), where the BIRUprogram is very consistent with BSS program. Theproblems caused by the BSS program, the more thenumber of cattle will be a lot of dirt, this issue is anopportunity for BIRU to make biogas. Biogas canreplace kerosene and firewood as a substitute energyfor cooking.
Environmental RiskBiogas digester no negative impact to thecommunity or a user, otherwise the biogasdigester will have a positive impact include:Dirty cages and cows that used to disturb theenvironment, is now a clean, tidy and healthy.The smoke from wood stoves and fuel oil canharm the health, now a clean and safe frompollution.Forests around the village many harvested byresidents who are looking for firewood, nowawake and green forest.
Social Risk
Implementation of biogas possible the socialrisks for some people:Residents who have not obtained theeducation and socialization of the benefits ofbiogas is still think taboo / unclean of cattledung.The implementation will create jealousy ifthere are that can not, there are the first toetc.
Force Majeure Risk
Force majeure risk that may occur in theconstruction of biogas digesters in the village"Jeruk Manis" is the occurrence ofearthquakes, volcanic eruption, or landslide.
