Ocean Renewable Energy

Prospective in Indonesia
AHMAD FIRDAUS

AT AMERCA 2022
Outline
• Introductory Background
• Introduction to Marine Renewable Energy
• Indonesian Resources
• Economic Aspect of Marine Renewable Energy
• Legal Aspect
• Prospectus
Field Test of Turbine
Structural Failure

Boat Propeller
Stuck by Garbage
in the area
Field Testing (Suramadu Bridge)
Field Testing
NOAA Nightlight Map of Indonesia

Sumatr
a
Papua

Java
 Other Tidal
Type of Energy
Ocean
Energy

Marine
Renewable Tidal
Energy Stream
Energy

Ocean
Wave Thermal
Energy
Energy
Conversion
Wave Energy Converter Technology
Pelamis. It is arguably the most successful wave
device to have been developed to date. There are
several variants of which the largest is a 750kW
device.
Terminator device: Salter’s Duck
Point absorber device: OPT Powerbuoy
Submerged pressure
differential: the Archimedes
Wave Swing
Oyster is an example of a near-shore
apper device. The latest version is a
2:5MW device It is a seabed mounted
device. The incident waves drive the
motion of the buoyant ap which rotates
about a hinge at its base. The motion of
the ap is carefully phased with the
incident wave so as to extract optimum
power. The ap's motion drives uid in
hydraulic pistons
Ocean Thermal Energy Conversion
• Ocean Thermal Energy Conversion
(OTEC) uses the ocean thermal gradient
between cooler deep and warmer
shallow or surface seawaters to run a
heat engine and produce useful work,
usually in the form of electricity.
• OTEC can operate with a very high
capacity factor and so can operate in
base load mode.
• Among ocean energy sources, OTEC is
one of the continuously available
renewable energy resources that could
contribute to base-load power supply.[
• The resource potential for OTEC is
considered to be much larger than for
other ocean energy forms. Up to 88,000
TWh/yr of power could be generated
from OTEC without affecting the ocean's
thermal structure.
Ocean Thermal Energy Conversion (OTEC)
Tidal Barrage

Single mode operation

La Rance Tidal Barrage, Dual mode operation

France

Swansea Tidal Lagoon, UK

(concept)
Device Concept

Cross flow turbine Axial flow turbine (Oxford) Axial flow turbine open
hydro

Transverse axis turbine (Kepler Other type; tidal sail

Cross flow turbine
Turbine –Oxford)
Major player and turbine scale

Simec Atlantis Sabella

Tocardo Hammerfest Andrytz Hydro

Offshore Wind Turbines
Offshore Wind Turbines
Wind Speed Distribution
Floating Solar Panel
Move to Ocean Floating Solar Power Plant
Outlook Energi Laut Indonesia (P3GL-ASELI)
Peta Potensi Arus Laut, P3GL-ASELI 2014
Peta Potensi Energi Gelombang, P3GL-ASELI 2014
Peta Potensi OTEC, P3GL-ASELI 2014
Potensi Energi Laut (Berdasarkan ASELI 2014)

Berdasarkan Perkiraan tahun 2014 ini total Potensi Energi Laut bisa mencapai 60 GW

Kapasitas pembangkit tenaga listrik sampai dengan tahun 2018 adalah 64,5 GW (Outlook
Energi Indonesia 2019)
Wind Energy Map

https://www.globalwindatlas.info/area/Malaysia
 Levelised Cost of Energy (LCOE)
• Measures lifetime costs divided by energy production
• Calculates present value of the total cost of building and operating a power plant over an assumed lifetime.
• Allows the comparison of different technologies (e.g., wind, solar, natural gas) of unequal life spans, project size,
different capital cost, risk, return, and capacities

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Simplified LCOE Calculation
𝑛
𝐶𝐴𝑃𝐸𝑋 + 𝑡 𝑝 =0 𝑂𝑃𝐸𝑋 . (1 + 𝑖𝑟 )−𝑡 𝑝
𝐿𝐶𝑂𝐸 = ,
𝑛
𝑡 𝑝 =1 𝐴𝐸𝑃 . (1 + 𝑖𝑟 )−𝑡 𝑝

CAPEX = Capital Expenditure or the Investment expenditures in year t (including financing)

OPEX = Operations and maintenance expenditures in year t
AEP = Annual Electricity Production or the electricity generation in year t
Ir = Discount rate
n = Life of the system
tp = time of the project

The LCOE calculation usually include Ft or Fuel expenditures in year t, since renewable energy doesn’t need fuel,
this item is excluded in the calculation

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Economic-financial model for Marine
Renewable Energy Projects.

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 LIFE-CYCLE COSTS (LCC)
The life-cycle costs (LCC) of a project will be determined with the objective of providing useful criteria for decision-making
in any or all of the stages that comprise the life-cycle of the project

𝐿𝐶𝐶 = 𝐶1 + 𝐶2 + 𝐶3 + 𝐶4 + 𝐶5 + 𝐶6

where : 𝐶1 represents the concept and definition costs,

𝐶2 : design and development costs,
𝐶3 : manufacturing costs,
𝐶4 : constitutes the installation costs,
𝐶5 : operation and maintenance costs
𝐶6 : decommissioning costs.

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 Scheme of electricity provision in Indonesia
Owning an Operational
Area
• Peraturan Pemerintah no. 25 tahun
2021 (PP no. 25 / 2021) govern that a
private sector is eligible to own a
wilayah usaha.
• This wilayah usaha means that the
private sector could manage the
wholesale electricity business, from
power generation to distribution.
• Furthermore, most of the operational
areas have been owned by PLN.
• Although, based on PP no. 25 /2021, it
is possible for an owner of a wilayah
usaha to lose their right in an
operational area.
• However, it is not recommended for an
executing entity renewable energy to
pursue this path.
Power Purchased
Agreement (PPA) contract
with PLN
• The MoEMR regulation No. 4
2020 has also revoked the
transfer obligation in the Build-
Own-Operate-Transfer (BOOT)
scheme.
• Risk sharing between tidal power
developer with PLN
• IPP contract is determined by an
open tender
• No right to match
• The unsolicited right is
unrecognized.
• The best option for the PPA
contract is having a joint venture
with PLN subsidiary company
with direct assignment scheme
Power Wheeling Scheme
• Regulated in the MoEMR regulation
No 1 the year 2015
• Is not limited to the operational
area
• It is compulsory for the grid owner
to open for this scheme.
• Based on grid capacity
• The management operational of
transmission system is conducted
by the largest local system
• Technical agreement is a part of the
contract agreement
• The grid rental cost follows the
price from the operating entity
based on its role.
• Doesn’t need new permit (IUPL).
 LEGAL FRAMEWORK FOR ENERGY SECTOR
BUSINESS IN INDONESIA
• Electric Power Provision
There are three (3) schemes that possible for an Independent Power Producer (IPP) in the
Floating PV :
1. Wilayah Usaha (PP no. 25 / 2021) : might not be feasible due to the intermittency and
the capacity of power production that might not be adequate to provide the electricity
as needed in a particular area and most of the operational areas have been owned by
PLN
2. PPA contract with PLN: The most common scheme for an IPP, however, the problem
with is this scheme is relatively risky for a PPP scheme (KPBU) since PLN should do an
open tender for an electricity quota in a particular grid system.
3. Power Wheeling Scheme: MoEMR regulation no 1/2015 allows any independent
power producer (IPP) to sell its electricity production using business to business (B2B)
contract scheme with their prospective buyer. However, this power wheeling scheme
has never been implemented since the regulation was issued.
 Power Wheeling Scheme
Transmission scheme between two operational Area
• Transmitting electrical power by the Independent Power
Producer (IPP) to an operational area by own by any company
that own an operational area or a company that hold an
operational area contract (IUPL that own Wilayah Usaha
• Purchasing of electricity from an operational area or
operational area permit holder by an
The only problem with this scheme is since the MoEMR regulation No 1, the year 2015 is issued, this scheme is never
been implemented
Transmission Scheme between power producer that
already have prospective costumer with the
operational area
• Operational permit holder rent the transmission to PLN/PPU
for transmitting electricity to his own company
infrastructure at the different location.
• Note: The operational entity (badan usaha pelaksana-BUP)
should be the same company of the operational permit
holder.
LEGAL FRAMEWORK
• Issue with Electricity Generation Cost or “Biaya Pokok Pembangkitan
(BPP) “
• BPP is different in each region and is usually used to benchmark the purchasing
price.
• The MoEMR no 169, the year 2021, show that the BPP is slightly lower than the
BPP based on MoEMR no 50, the year 2021.
• Cacaban has significantly lower BPP (with only 6.23 cents USD/kWh) than
Pandan Duri (with 11.77 cents USD/kWh).
• The MoEMR no. 4, the year 2020, regulate that the BPP for the photovoltaic
maximum is 85% from the BPP. Therefore, it is necessary for a BUP to develop a
floating solar PV in the dam's reservoir to consider this condition.
Provision of Energy from Renewable Challenge
• Indonesia arguably has enormous potential for the tidal stream energy. However, the local
demand might not meet the economic of scale of the technology development
• The electricity price in Indonesia is relatively low

Northern Sumatra =
9.26 cent USD/KWh

Java- Bali = 6.23 cUSD/KWh Flores = 12.63 cents USD /KWh

Lombok = 11.77 cents USD Tambora (Bima dan Sumbawa =

/KWh 12.63 cents USD /KWh

Electricity generating cost (Biaya Pokok Pembangkitan – BPP) based on MoEMR no 169/ 2021
 PROSPECTUS
TIMELINE OF NATIONAL COAL PHASE-OUT ANNOUNCEMENTS
 PROSPECTUS
Rencana Phase out Batu Bara dari Pemerntah
Prospectus
Program Dedieselisasi Tahap 1

Terdapat 5200 PLTD yang akan dipensiunkan oleh Pemerintah

Thank you