GREENFIELD - SINTANG 12 MW BTG

BIOMASS POWER PLANT

PT CARPEDIEM ELEKTRIKAL NUSANTARA (CEN)

Unrestricted
Project Description
The scope of this project is to build 12 MW biomass power plant complete with fuel
treatment system, 20 kV feeder express, 20 kV PLN substation and road
reinforcement. The power plant is to be connected to PLN 20 kV grid system
through 15 MVA step up power transformer. The electrical power is sold to PLN thru
PPA with Build, Own, Operate and Transfer (BOOT) contract scheme with 25 years
contract duration, 20 years take or pay and 5 years take and pay.
ƒ Assets : Power Plant & Fuel Treatment System
ƒ Sustainability biomass supply: Having business partner with KUD and surrounding
palm oil plantation with passive share up to 10% and fertilizer = 1,730 ton/year
ƒ Project Timeframe :
ƒ DED and Financial Closing : 6 months after PPA
ƒ EPCI up to COD : 23 months (contingency 2 months)
 Sintang Overview
τ Under the province of West Kalimantan.
τ Total population 402,212 persons, with area 21,635 km2.
τ The main livelihoods and industrial purpose: palm oil (163,028 ha) and rubber (93,113 ha)
τ Can be reached through roads, air and rivers. Some infrastructure is being built such international
airport.
τ Isolated 20 kV electrical system, 36 units of Diesel Power Plants (old condition, reduced reliability),
total installed capacity of 27.9 MW (11.9 MW owned by PLN and 16 MW rent)
τ A coal fire power plant with installed capacity of 3 x 7 MW are being built, 2 units are being
commissioned and the other will be in 2018 - facing difficulties in transporting the coal for fuel supply
through Melawi river that has a drastic ups and downs condition (low draft during dry season).
τ West Kalimantan electrical system will be interconnected with Central Kalimantan electrical system in
2023 through 150 kV system, Sintang will be in 2020.
τ The electrical growth is 9.1% in average, (based on PLN data 2011-2015). The electric power demand
growth will be 9.4% per year (Refer to RUPTL 2017-2026)
 Opportunity
ƒ Align with NAWACITA Program article 3 – “Membangun
Indonesia dari pinggiran dengan memperkuat daeah-
daerah dan desa dalam kerangka negara kesatuan”
ƒ Current electrification ratio 61.58%
ƒ Support Renewable Energy as per PP No. 79 thn 2014 to
achieve 23% Renewable Energy Ratio by 2025
ƒ Government 35,000 MW Program for economic growth
ƒ Multiplier effects to community and economic growth
ƒ PLN tariff is IDR 1,407/kWh justify to project economic
(worse scenario)
ƒ Local government support
ƒ Existing diesel power plant is high plant production cost
(BPP) with IDR 2,332/kWh (based on 2017 tariff).
ƒ Abundant land
CEN in KALBAR – Sintang PLN Program
 Business Assumption Economic analysis factors:
• 12 MW Installed Capacity
The methodology and key assumptions to determine
• 25 years total life cycle cost analysis
the cost estimation refer to PLN Cost Component
breakdown: Investment Cost, Operational and • PLN Tariff IDR 1,407/kWh
Maintenance Cost & Fuel Cost • Biomass Fuel Cost : IDR 131/kg – Raw,
Moisture Content 50%
• 10 years bank loan
The power plant performance metric
• 10 years depreciation and amortization
Description Total Unit
Net capacity 10,000 kW • Tax Incentive : 30% of the capital cost for 6
Net average generated 75,140,000 kWh years, 5% per year
Average available hours 7,502 Hours • 11% interest, 16% equity interest = WACC
Average Capacity Factor 85.64 % 12.5%
Gross Efficiency 23.87 % • 5% price escalation
Fuel Consumption 349,448 kg/day
• 10.6% discounted factor
• 25% GOI tax
Project Cost
INVESTMENT (IDR)
POWER PLANT & FUEL TREATMENT ASSET CIVIL NON CIVIL TOTAL
LAND P REP ARATION 2 ,3 00 , 00 0, 00 0 2,30 0,00 0,0 00
P RE-PROJECT EX PENSE 10 ,1 62 , 59 0, 00 0 1 0,16 2,59 0,0 00
P OWER P LANT EQU IPM ENT 1 42 ,2 84 , 70 0, 00 0 14 2,28 4,70 0,0 00
CIVIL BUILDING WORK 4 6,9 00,0 00 ,000 4 6,90 0,00 0,0 00
INFRASTRUCTURE 1 0,4 30,0 00 ,000 1 0,43 0,00 0,0 00
EPC 18 ,6 72 , 35 0, 00 0 1 8,67 2,35 0,0 00
OP ERATI NG CAPITAL (PMT COST + OPERATING CAP ITAL) 20 ,2 26 , 11 7, 57 4 2 0,22 6,11 7,5 74
BIOMASS INITIAL PLANTATION - -
FU EL PREPARATI ON 15 ,2 00 , 50 1, 42 9 1 5,20 0,50 1,4 29
M AINTENANCE TOOLS 2 33 , 00 0, 00 0 23 3,00 0,0 00
INCREASE RATIO FOR NIAS PROJ ECT - -
CONTINGENCY 4 ,0 11 , 00 0, 00 0 4,01 1,00 0,0 00
5 7,3 30,0 00 ,000 2 13 ,0 90 , 25 9, 00 3 27 0,42 0,25 9,0 03
IDC (2.5 YEARS) 7 0,93 4,02 1,3 98
TOTAL P ROJECT + IDC 34 1,35 4,28 0,4 00

PLN ASSET CIVIL NON CIVIL TOTAL

Interconnection Facility Investment Cost 4,9 17,5 00 ,000 4 ,9 17 , 50 0, 00 0 9,83 5,00 0,0 00
Project Cost
OPERATION & MAINTENANCE COST (IDR) – 1st Year
TOTAL 1 8, 1 00 , 76 4 ,6 9 3
SP V - 1 2, 1 82 , 59 5 ,6 1 3
A REASONABLE EX PEN SE 4 17 , 10 0 ,0 0 0
B OPERATIONAL COST 1 44 , 00 0 ,0 0 0
C RENT 4 40 , 00 0 ,0 0 0
D INSURANCE 3 22 , 49 2 ,9 0 2
E RETRIBUTIONS 6 24 , 59 8 ,5 1 0
F EQUIPMENT CERTIFICATIONS 2 00 , 55 0 ,0 0 0
G WASTE M ANAGEMENT (ASH - HANDLI NG COST) 33 , 85 4 ,2 0 0
OPERATI ON SUPERVISIONS SERVICE AGREEMEN T 2, 5 48 , 88 1 ,2 6 3
1 M AN POWER 2, 1 34 , 88 1 ,2 6 3
2 BUSINESS TRIP 4 14 , 00 0 ,0 0 0
O&M CONTRACTOR 1 3, 3 69 , 28 7 ,8 1 7
1 M AN POWER 4, 4 13 , 50 7 ,9 6 6
2 OPERATION 2, 1 71 , 65 3 ,9 6 6
3 MAINTENANCE 5, 2 27 , 60 2 ,2 6 7
4 M AN AGEMENT FEE 1, 5 56 , 52 3 ,6 1 8 FUEL COST (IDR) – 1st Year
Fuel Cost (IDR) 2 0 ,8 44 , 69 6 ,6 5 4
Factor 1. 0 2
Hours/day 24
Available Hours 7 ,5 0 2
Heat Balance 1 4 ,3 2 6
Project Economic Result

Cost Component (IDR)/kWh

Investment Cost 50 0. 5 6
Operation & Maintenance Cost 36 4. 9 4
Fuel Cost 42 2. 2 8
Total Component 1 , 28 7. 7 8
Profit in IDR 11 8. 9 7
Economic Impact
Multiplier Effects in Economic Value (IDR)/year
Other Opportunity : CDM Trading for
LOCAL GOVERNMENT
ANNUAL TAX (averag e for 25 years) 3,405,572,317
Power Plant
ANNUAL WATER RETRIBUTIONS 853,064,255
IMB 1,200,000,000
ANNUAL PBB 110,640,000
PLN
ANNUAL B PP SAVING 18,653,505,000
LOCAL COMMUNITY
ANNUAL FERT ILIZER 3,460,467,994
ANNUAL B IOMASS SUPPLY CHAIN 16,699,130,000
MANPOWER - DURING CONSTRUCTION 1,173,750,000
ANNUAL MANPOWER - DURING OPER ATION 882,701,593

Economic Value Total Community Local Government PLN

One time basis 2 ,3 7 3, 7 50 , 00 0 1 , 17 3 ,7 5 0, 0 00 1 , 20 0, 0 00 , 0 00 -
Annual 4 4 ,0 6 5, 0 81 , 16 0 21 , 04 2 ,2 9 9, 5 87 4 , 36 9, 2 76 , 5 73 1 8, 6 53 , 50 5 ,0 0 0
Plan Forward & Schedule
The following are key items status:
No Description Time Frame
1 Secure Biomass Contract 1 month
2 SPV 1 month
3 Technical Clarification and PPA Negotiation 2 months
4 AMDAL (parallel process) 5 months