Small Hydro Resource Mapping in Indonesia€¦ · Small Hydro Resource Mapping in Indonesia SMALL HYDROPOWER POTENTIAL REPORT March 2017 Public Disclosure Authorized Public Disclosure

Small Hydro Resource Mapping in Indonesia

SMALL HYDROPOWER POTENTIAL

REPORT

March 2017

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

This report was prepared by GESTO, AQUALOGUS and INDONESIA HYDRO CONSULT, under contract to The World Bank.

This is a final output from the nergy Resource Mapping and Geospatial Planning [Project ID: P145273]. This activity is funded and supported by the Energy Sector Management Assistance Program (ESMAP), a multi-donor trust fund administered by The World Bank, under a global initiative on Renewable Energy Resource Mapping. Further details on the initiative can be obtained from the ESMAP website. This final document presents the hydropower potential in the regions of NTT, Maluku, Maluku Utara and Sulawesi for both the grid expansion and isolated systems and complements the GIS Database output. This output has been internally peer-reviewed and ilisted on the ESMAP website along with the other project outputs - please refer to the corresponding country page.

Copyright © 2017 THE WORLD BANK

Washington DC 20433

Telephone: +1-202-473-1000

Internet: www.worldbank.org

The World Bank, comprising the International Bank for Reconstruction and Development (IBRD) and the

International Development Association (IDA), is the commissioning agent and copyright holder for this

publication. However, this work is a product of the consultants listed, and not of World Bank staff. The

findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The

World Bank, its Board of Executive Directors, or the governments they represent.

The World Bank does not guarantee the accuracy of the data included in this work and accept no

responsibility for any consequence of their use. The boundaries, colors, denominations, and other

information shown on any map in this work do not imply any judgment on the part of The World Bank

concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

The material in this work is subject to copyright. Because The World Bank encourages dissemination of its

knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full

attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be

addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433,

USA; fax: +1-202-522-2625; e-mail: [email protected]. Furthermore, the ESMAP Program Manager

would appreciate receiving a copy of the publication that uses this publication for its source sent in care of

the address above, or to [email protected].

http://www.gestoenergy.com/http://www.aqualogus.pt/http://indonesia-hydro.com/http://www.esmap.org/re_mappinghttp://www.worldbank.org/

SMALL HYDROPOWER MAPPING AND IMPROVED

GEOSPATIAL ELECTRIFICATION PLANNING

INDONESIA

SMALL HYDROPOWER POTENTIAL IN NTT,

MALUKU, MALUKU UTARA AND SULAWESI

REPORT

March 2017

SMALL HYDROPOWER MAPPING AND IMPROVED GEOSPATIAL ELECTRIFICATION PLANNING - INDONESIA

SMALL HYDROPOWER POTENTIAL IN NTT, MALUKU, MALUKU UTARA AND SULAWESI REPORT

i ID.2016.R.007.1

TABLE OF CONTENTS

1 INTRODUCTION ............................................................................................................................................................... 1

1.1 SYNOPSIS .............................................................................................................................................................................1

1.2 ESMAP ..............................................................................................................................................................................1

1.3 THE CONSULTANT .................................................................................................................................................................2

1.4 OBJECTIVES ..........................................................................................................................................................................4

1.5 METHODOLOGY ....................................................................................................................................................................5

1.6 CONTENT OF THE REPORT .......................................................................................................................................................6

2 EXISTING POWER GENERATION AND DISTRIBUTION SITUATION ..................................................................................... 8

2.1 CONTEXT .............................................................................................................................................................................8

2.2 INDONESIA ...........................................................................................................................................................................8

2.2.1 Current situation .....................................................................................................................................................8

2.2.2 Development plans ...............................................................................................................................................12

2.3 SULAWESI ..........................................................................................................................................................................16

2.3.1 Current situation ...................................................................................................................................................16

2.3.2 Development Plans ...............................................................................................................................................18

2.4 MALUKU & MALUKU UTARA .................................................................................................................................................20



2.5 NTT .................................................................................................................................................................................26



3 SMALL HYDROPOWER ROLE .......................................................................................................................................... 31

3.1 CONTEXT ...........................................................................................................................................................................31

3.2 REVIEW OF THE CURRENT LEGAL FRAMEWORK ..........................................................................................................................31

3.2.1 Electricity sector ....................................................................................................................................................31

3.2.2 Other required licenses .........................................................................................................................................35

3.2.3 Environmental Administration ..............................................................................................................................36

3.2.4 Forestry Administration ........................................................................................................................................39

3.3 STRENGTHS AND WEAKNESSES OF USING SMALL HYDROPOWER IN ISOLATED SYSTEMS .....................................................................40

3.3.1 Context ..................................................................................................................................................................40

3.3.2 Strengths ...............................................................................................................................................................41

3.3.3 Weakenesses ........................................................................................................................................................42

3.4 POSSIBLE SOLUTIONS TO IDENTIFIED CHALLENGES .....................................................................................................................43

4 UPDATED LIST OF ALREADY IDENTIFIED POTENTIAL FOR SMALL HYDROPOWER ........................................................... 46

4.1 CONTEXT ...........................................................................................................................................................................46

4.2 LIST OF PROJECTS FROM THE NATIONAL MAP ...........................................................................................................................46

4.3 SITE VISITS TO MAJOR WILAYAHS ...........................................................................................................................................53

4.4 RESULTS ............................................................................................................................................................................55

5 REVIEW AND PRIORITIZATION OF SMALL HYDROPOWER POTENTIAL ........................................................................... 56

5.1 CONTEXT ...........................................................................................................................................................................56



ii ID.2016.R.007.1

5.2 ANALYSIS OF EXISTING DATA .................................................................................................................................................56

5.3 DEMAND ...........................................................................................................................................................................59

5.4 METHODOLOGY ..................................................................................................................................................................60

5.4.1 Review Process ......................................................................................................................................................60

5.4.2 Screening Stage ....................................................................................................................................................62

5.4.3 Analysis Stage .......................................................................................................................................................65

5.4.4 Prioritization Stage ...............................................................................................................................................90

5.5 ANALYSIS OF ISOLATED GRID SYSTEMS ....................................................................................................................................95

5.6 RECOMMENDATIONS FOR FURTHER DEVELOPMENTS ..................................................................................................................99

5.7 UPDATE OF THE NATIONAL GIS DATABASE ...............................................................................................................................99

6 CONTRIBUTIONS TO THE GEOSPATIAL ELECTRIFICATION PLANNING TOOL ................................................................. 100

7 CONCLUSIONS ............................................................................................................................................................. 101

REFERENCES ......................................................................................................................................................................... 103

FIGURES

Figure 1.1 – Objectives of the project Small Hydropower Mapping in Indonesia and Improved Geospatial

Planning. .........................................................................................................................................................................................4

Figure 1.2 – Workflow with the technical approach and methodology from the Consultant. .......................................................6

Figure 2.1 – Development plan of the transmission system in Sumatera. [5] .............................................................................10

Figure 2.2 – Total generating capacity per type of power plant in 2014. [4] ...............................................................................10

Figure 2.3 – Electricity consumption per type of customer. [4], [6], [7] ......................................................................................11

Figure 2.4 – Regional demand growth between 2015 and 2024. [3] ...........................................................................................13

Figure 2.5 – Regional demand growth between 2015 and 2024 per type of customer (TWh). [3] .............................................13

Figure 2.6 – Additional installed capacity per type of owner and operator. [3] ..........................................................................14

Figure 2.7 – Additional installed capacity per type of technology. [3] .........................................................................................15

Figure 2.8 – Development plan for New and Renewable Energy 2015-2024. [3] ........................................................................15

Figure 2.9 – Installed capacity in Sulawesi per province in 2014. [4] ...........................................................................................17

Figure 2.10 – Installed capacity in Sulawesi in 2014. [4] ..............................................................................................................17

Figure 2.11 – Development plans in Sulawesi between 2016 and 2025. [5] ................................................................................20

Figure 2.12 – Installed capacity in Maluku and Maluku Utara in 2014. [4] ..................................................................................21

Figure 2.13 – Power generation development plant in Maluku between 2016 and 2025 (RUPTL). ............................................23

Figure 2.14 – Development plans in Ambon and Seram between 2016 and 2025. [5] ................................................................24

Figure 2.15 – Development plans in Buru between 2016 and 2025. [5] ......................................................................................24

Figure 2.16 – Power generation development plant in Maluku Utara between 2016 and 2025. [5] ..........................................25

Figure 2.17 – Development plans in Halmahera between 2016 and 2025. [5] ............................................................................26

Figure 2.18 – Installed capacity in NTT in 2014 (MW). [4]............................................................................................................27



iii ID.2016.R.007.1

Figure 2.19 – Power generation development plant in NTT between 2016 and 2025. [5] ..........................................................28

Figure 2.20 – Development plans in Flores between 2016 and 2025. [5] ....................................................................................29

Figure 2.21 – Development plans in Timor between 2016 and 2025. [5] ....................................................................................30

Figure 2.22 – Development plans in Sumba between 2016 and 2025. [5] ...................................................................................30

Figure 3.1 – Flowchart for direct appointment method for SHP. .................................................................................................33

Figure 3.2 – Scheme of the AMDAL procedures. ..........................................................................................................................38

Figure 4.1 – Distribution of hydropower projects per Island and Wilayah. .................................................................................47

Figure 4.2 – Distribution of Large (LHP) and Small (SHP) hydro per Island and Wilayah. ............................................................49

Figure 4.3 – Distribution of SHP per Island and Wilayah. .............................................................................................................50

Figure 4.4 – Total capacity (MW) per Island and identified developer. .......................................................................................52

Figure 4.5 – Site visits in: a) Minraleng-2 project site, Sulawesi Selatan; b) PLTM Tincep 2 project site, Sulawesi

Utara; c) Halo project site, Ambon, Maluku; and d) PLTMH Oehala micro-hydro project, Kupang, Timur. ................................54

Figure 5.1 – Hydropower capacity per region. List of identified potential. .................................................................................57

Figure 5.2 – Installed capacity (



iv ID.2016.R.007.1

Figure 5.22 – Distribution of IRR for Maluku Utara region. ..........................................................................................................86

Figure 5.23 – Investment cost vs installed capacity Sulawesi region. ..........................................................................................86

Figure 5.24 – Distribution of LCOE for Sulawesi region. ...............................................................................................................87

Figure 5.25 – Distribution of IRR for Sulawesi region. ..................................................................................................................88

Figure 5.26 – Investment cost vs installed capacity in all the regions. .........................................................................................88

Figure 5.27 – Distribution of LCOE in all the regions. ...................................................................................................................89

Figure 5.28 – Distribution of IRR in all the regions. ......................................................................................................................89

Figure 5.29 - Workflow for the prioritization stage. .....................................................................................................................90

Figure 5.30 – Installed capacity classification. ..............................................................................................................................91

Figure 5.31 – LCOE classification. .................................................................................................................................................92

Figure 5.32 – Local electrification demand analysis example. .....................................................................................................93

Figure 5.33 – Local electrification demand classification. ............................................................................................................93

Figure 5.34 – Isolated grid SHP potential site example. ...............................................................................................................96

TABLES

Table 2.1 – Electricity statistics between 2009 and 2014. [4], [6], [7], [8], [9] .............................................................................12

Table 2.2 – PLN and IPP investment between 2015 and 2024 (USD million). [3] .........................................................................16

Table 2.3 – Electricity statistics in Sulawesi per province in 2014. [4] .........................................................................................18

Table 2.4 – Electricity statistics in Maluku and Maluku Utara in 2014. [4] ..................................................................................22

Table 2.5 – Electricity statistics in NTT in 2014. [4] ......................................................................................................................28

Table 3.1 - Feed-in tariff levels. ....................................................................................................................................................34

Table 3.2 – Other required licenses. .............................................................................................................................................35

Table 3.3 - Electricity and energy utilization activities needed to conduct an AMDAL. ...............................................................37

Table 3.4 – Utilization of forest areas by development activities beside forestry production, P.16/Menhut-

II/2014. .........................................................................................................................................................................................40

Table 4.1 – Distribution of the hydropower projects per Island and Wilayah. ............................................................................47

Table 4.2 – Distribution of SHP per Island and Wilayah. ..............................................................................................................50

Table 4.3 – Indonesian SHP status. ...............................................................................................................................................51

Table 4.4 – Indonesian SHP developer’s categories. ....................................................................................................................51

Table 4.5 – Identified new SHP potential from PLN Wilayahs. .....................................................................................................53

Table 4.6 – Identified SHP potential on the study area. ...............................................................................................................55

Table 5.1 – Hydropower capacity per region. List of identified potential. ...................................................................................56

Table 5.2 – Province Statistics. [4] [20] ........................................................................................................................................59



v ID.2016.R.007.1

Table 5.3 – Province load demand forecast. [5] ...........................................................................................................................60

Table 5.4 – Number of excluded projects in Phase 1 by region. ..................................................................................................63

Table 5.5 – Number of excluded project in Phase 2 by region. ....................................................................................................63

Table 5.6 – Number of excluded project in Phase 3 by region. ....................................................................................................64

Table 5.7 – Number of excluded projects in Phase 4 by region. ..................................................................................................64

Table 5.8 – Hydropower capacity per region. Final screening phase. ..........................................................................................65

Table 5.9 – Number of projects considered for the list of most promising sites per region. .......................................................70

Table 5.10 – Protected and environmentally sensitive areas classification. ................................................................................92

Table 5.11 – Potential isolated grid SHP sites (with 30 km or greater distance to grid). .............................................................96

Table 5.12 – Isolated grid SHP potential sites. Annual Energy Demand meets Annual Production. ...........................................97

Table 5.13 – Isolated grid SHP potential sites. Annual Energy Demand meets Annual Production. ...........................................98

Table 5.14 – Most promising isolated grid SHP potential sites. ...................................................................................................98

ANNEXES

Annex I – Updated list of identified potential in NTT, Maluku, Maluku Utara and Sulawesi

Annex II – Demand forecast results

Annex III – Results of the preliminary site assessment

Annex IV – Multi-criteria results

Annex V – List of most promising sites - Base strategy

Annex VI – List of most promising sites - Hydropower development strategy

Annex VII – List of most promising sites - Environmental impact strategy

Annex VIII – List of most promising sites – Rural Electrification strategy

Annex IX –Results for the Isolated Grid Systems



vi ID.2016.R.007.1

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

AMDAL Analisis Mengenai Dampak Lingkungan (Environmental Impact Assessment)

ANDAL Analisis Dampak Lingkungan Hidup (Environmental Impact Analysis)

BKPM Badan Koordinasi Penanaman Modal (Indonesian Investment Coordinating Board)

BPS Badan Pusat Statistik (Statistics Indonesia)

CSP Concentrated Solar Power

DivEBT Divisi Energi Baru Dan Terbarukan (New And Renewable Energy Division)

EBT Energi Baru Dan Terbarukan (New And Renewable Energy)

EDTL Electricidade De Timor Leste

EHV Extra High Voltage

ESMAP The Energy Sector Management Assistance Program

FiT Feed-in-tariff

GDP Gross domestic product

GEP Geospatial Electrification Planning

GIS Geographic Information System

HV High Voltage

IHC Indonesia Hydro Consult

IMB Izin Mendirikan Bangunan (Building Construction Permit)

IPP Independent Power Producer

IRENA The International Renewable Energy Agency

IUPTL Izin Usaha Penyediaan Tenaga Listrik (Electricity Business Permit)

KA-ANDAL Kerangka Acuan Analisis Dampak Lingkungan Hidup (Environmental Management Plan)

KEN Kebijakan Energi Nasional (National Energy Policy)

KPPT Kantor Pelayanan Perizinan Terpadu (Integrated Licensing Services Office)

LCOE Levelized Cost Of Electricity

LHP Large Hydropower Project

LV Low Voltage

MEMR Kementarian Energi Dan Sumber Daya Mineral (Ministry of Energy and Mineral Resources)

NTB Nusa Tenggara Barat

NTT Nusa Tenggara Timur

PEN Pengelolaan Energi Nasional (Blueprint Of National Energy Management)

PLN Perusahaan Listrik Negara (State Electricity Company)

PPA Power Purchase Agreement

PTSP Pelayanan Terpadu Satu Pintu (One-Stop Integrated Services)

RE Renewable Energy

RKL Rencana Pengelolaan Lingkungan Hidup (Environmental Management Plan)

RPL Rencana Pemantauan Lingkungan Hidup (Environmental Monitoring Plan)

RUKD Rencana Umum Ketenagalistrikan Daerah (Regional General Plan Of Electricity)

RUKN Rencana Umum Ketenagalistrikan Nasional (Electricity Master plan)

RUPTL Rencana Usaha Penyediaan Tenaga Listrik (Electrification Development Program)



vii ID.2016.R.007.1

SHP Small Hydropower Project

ToR Terms of Reference

UKL Upaya Pengelolaan Lingkungan Hidup (Environmental Management Efforts)

UPL Upaya Pemantauan Lingkungan Hidup (Environment Monitoring Efforts)

USAID United States Agency For International Development

WB World Bank



1 ID.2016.R.007.1

1 INTRODUCTION

1.1 SYNOPSIS

The Small Hydropower Mapping and Improved Geospatial Electrification Planning in Indonesia project

(Selection No. 1125330) is an initiative administered by the Energy Sector Management Assistance

Program (ESMAP), which objective is to facilitate and improve the planning and investment process for

small hydropower development in both grid and isolated systems through:

a) Building up a central database on small hydropower at national scale and validating the mapping

of small hydropower in NTT, Maluku, Maluku Utara and Sulawesi;

b) Improved electrification planning by integrating small hydropower potential for the provinces of

NTT, Maluku, Maluku Utara and Sulawesi into the planning process.

The current document represents the Small Hydropower Potential in NTT, Maluku, Maluku Utara and

Sulawesi Report that aims to present the hydropower potential in those regions for both grid expansion

and isolated systems and to present a list of small hydropower sites for development, including

recommendations for additional supporting studies, investigation and monitoring. It is complemented

by two other documents: the GIS Database User’s Manual and the Small Hydropower Mapping Report.

The next sub-sections further explain the background, objectives and content of the document.

1.2 ESMAP

ESMAP is a global knowledge and technical assistance program administered by The World Bank and

supported by 11 bilateral donors. ESMAP’s efforts focus on energy security, energy access, and climate

change, and involve three core services: i) analytical work, ii) knowledge clearinghouse, and iii)

operational support to The World Bank regions for technical assistance work at the country level.

Carrying out RE resource mapping and geospatial analysis at the country level helps to scale up the

deployment of biomass, small hydro, solar and wind electricity generation, particularly in countries

where one or more of these sources of power are underdeveloped. This is because such mapping is a

crucial step to developing a policy framework to guide investment in RE electricity generation which,

along with publicly-available data, helps reduce transaction costs and speeds up deployment by

providing commercial developers with:

Increased certainty that projects are likely to be approved or permitted with minimal

bureaucracy and delay;

Data transparency and a level playing field, thereby reducing barriers to the entry and limiting

the scope of corruption;

A baseline of reliable data that can help guide prospecting activities and can be used for data

verification purposes;



2 ID.2016.R.007.1

A better informed off-taker or purchasing authority, thereby improving the price negotiation

process.

In response, ESMAP has launched a new initiative to support country-driven efforts to improve RE

resource awareness, put in place appropriate policy frameworks for RE development, and provide “open

access” to resource and geospatial mapping data. One of the key elements of this ESMAP initiative was

to select consulting firms and establish framework agreements for the procurement of resource data

and mapping services. On the scope of “Small Hydropower Resource Data and Mapping Service”, the

Consultant Consortium headed by Gesto Energy Consulting (GESTO), also including Aqualogus,

Engenharia e Ambiente (AQUALOGUS) and GAF AG was successfully selected for the framework

agreement with The World Bank.

The current project “Small Hydropower Mapping and Improved Geospatial Planning” is under the scope

of the framework agreement with The World Bank.

For the renewable energy mapping based on hydropower, The World Bank hired qualified consulting

firms with demonstrated capabilities in providing small hydropower resource mapping and related

services. The Indefinite Delivery Contract commenced on May 28, 2013, and is expected to end by 2017.

The tender for Small Hydropower Mapping and Improved Electrification Planning in Indonesia was

released under this contract in late 2013.

For this particular tender, the Consultant’s Association (CONSULTANT) is led by GESTO, and includes

AQUALOGUS and Indonesia Hydro Consult, as a local partner.

After the tenders’ evaluation in early 2014, the World Bank informed the Consultant that it was chosen

to perform the Project. After a period of negotiation the Contract was signed on February 12 2014.

The project was built on previous efforts for the assessment of renewable energy potential and

electrification funded by The World Bank (ASTAE-AusAID-ESMAP), ADB, AusAid, Norwegian

Government, USAID and others. The resource mapping activity is part of a broader World Bank program

of technical assistance that will assist in the implementation of the 1,000 Island Electrification Program

via scaling up renewable energy, resource mapping, geospatial planning and capacity building of key

stakeholders in each of the above areas.

1.3 THE CONSULTANT

GESTO, the leading partner, is an international consultant specialized in energy and in the evaluation of

renewable resources. GESTO has know-how and experience in the development of renewable energy

policy as well as master plans and supports all phases of renewable energy project development.

With a wide scope of expertise, including but not limited to, hydro resource study and evaluation,

project analysis and prioritization, and support for projects development, GESTO track record includes,

not only, resource mapping - more than 15 resource maps in the last 4 years – but also, the



3 ID.2016.R.007.1

development of Hydro Atlas and projects identification for Cape Verde, East Timor, Mozambique and

Angola, and a 5 MW Solar plant development in Cape Verde (Santiago Island) - the largest built in Africa

at that time.

Currently, GESTO presents a worldwide portfolio of concluded and on-going projects: Renewable Energy

Roadmap to 2020 (Cape Verde), Concentrated Solar Power (CSP) Plant Pre-Feasibility Study (Namibia),

Mozambique Renewable Energy Atlas, Angola Energy Vision to 2025, Renewable Electrification Plan of

East Timor and Project Development for Renewable Auctions in South Africa.

AQUALOGUS’ core business is dedicated consultancy and engineering design services in water and

environmental projects. The company has 16 years’ experience in hydropower projects evaluation,

feasibility assessment and design. It has recently developed/participated a number of studies and

designs of hydropower schemes, dams and environmental assessments, worth highlighting the

evaluation of the small hydropower potential (



4 ID.2016.R.007.1

1.4 OBJECTIVES

After the 2013 Scoping Mission by the ESMAP team in Jakarta it was concluded that small hydropower

can play a role in clean power generation in Indonesia, and that there was interest from both public and

private investors to develop small hydropower, but that there lacked promotion and coordinated

planning of small hydropower development. Hence, the ESMAP current contribution for small

hydropower in Indonesia (Small Hydropower Mapping and Improved Geospatial Planning in Indonesia)

has an overall objective to mainstream small hydropower into the planning process for generation

growth and electrification planning in Indonesia.

More precisely, the consultancy services have the specific purpose to facilitate and improve the planning

process of small hydropower in both grid and isolated systems through establishment of GIS-based

databases, which will help PLN to optimize development and avoid conflicts with long-term maximized

utilization of the resource and to promote and facilitate the role of small hydropower in remote areas

and in isolated grid systems, where the need is to go from planning small hydropower based on

maximized capacity and least cost of energy, to customizing schemes to demand to get the highest

benefit of substituting fossil fuel generating plants.

The objectives of the project are schematically presented in Figure 1.1.

Figure 1.1 – Objectives of the project Small Hydropower Mapping in Indonesia and Improved Geospatial Planning.

Mainstream small

hydropower into the planning process for

generation and electrification

Facilitate and Improve the

planning process

Avoid conflicts with long term

maximized utilization of the

resource

Promote and facilitate de role

of small hydropower in remote areas and isolated grid systems

Customizing schemes (stand alone or hybrid)

to demand to get the highest

benefit of substituting

diesel

Building up a central

database on small hydro

(National Level)

Integrate small hydropower

potential in the improved

electrification (NTT, Maluku, Maluku Utara and Sulawesi)



5 ID.2016.R.007.1

Moreover, the consultancy services will be done in parallel on two vectors following PLN’s interest:

Building up a central database on small hydropower at a national scale to be housed in PLN’s

central office in Jakarta;

Improved electrification planning by integrating small hydropower potential for the provinces of

NTT, Maluku, Maluku Utara, and Sulawesi in eastern Indonesia.

The two components will be linked through developing the national database on small hydropower in

such a way that it can feed input to the geospatial electrification planning tool, which is aimed to be

implemented for the entire country in the long-term.

1.5 METHODOLOGY

The Terms of Reference requested the work to be grouped in two main activities:

Activity 1 – Data collection and production of a national small hydropower GIS database, review

and validation of small hydropower potential for NTT, Maluku, Maluku Utara and Sulawesi;

Activity 2 – Support to the inclusion of small hydropower potential to the geospatial

electrification planning for NTT, Maluku, Maluku Utara and Sulawesi.

As an optional activity, a training component was requested and contracted within the scope of the

project. The training activity aims to provide PLN the required skills to host, operate and further develop

the National Database, as well as to perform the required analysis to prioritize the Small Hydropower

Projects (SHP) in the region, according to the established multi-criteria analysis.

The objectives of Activity 1 are:

To carry out an inception phase and draw an inception report

To create a GIS database for national information on SHP development

To create the list of the most promising SHP sites in NTT, Maluku, Maluku Utara and Sulawesi

To produce the SHP Mapping Report and promote a workshop for results presentation to client

and relevant stakeholders

The objectives of Activity 2 are:

To create a list of potential SHP sites in NTT, Maluku, Maluku Utara and Sulawesi to be

incorporated in the Geospatial Electrification Planning (GEP) Tool

To draw policy recommendations on the development of SHP in Indonesia

To produce the Final Report and promote the Final Workshop for the Client and relevant

stakeholders

For the development of these activities, the Consultant’s methodology is best described in the workflow

of interconnected sub-activities and tasks presented in Figure 1.2.



6 ID.2016.R.007.1

Figure 1.2 – Workflow with the technical approach and methodology from the Consultant.

1.6 CONTENT OF THE REPORT

Chapter 1 of the report is the project’s introduction. Chapter 2 addresses the existing power generation

and distribution situation in Indonesia, with an especial focus on the study area of NTT, Maluku, Maluku

Utara and Sulawesi.

Building on the assessment described on the previous chapter, a review of the SHP role in Indonesia is

presented in Chapter 3, including the assessment of the current legal framework and of the expected

strengths and weakness of using SHP in isolated grid systems.

The update of the list of already identified potential for SHP on the study area of NTT, Maluku, Maluku

Utara and Sulawesi is conducted in Chapter 4, based on the data collated for the nationwide database

complemented with the results of the site visits to the major regional offices.

Based on the previous updated list of already identified potential for SHP on the study area of NTT,

Maluku, Maluku Utara and Sulawesi, a review and prioritization of the SHP potential in the same study



7 ID.2016.R.007.1

area is described in detail in Chapter 5, where the resulting list of the most promising sites is also

presented. It is also addressed in detail in Chapter 5 the SHP ranking process for isolated grid systems

and future recommendations for further development studies.

Chapter 6 addresses the coordination and inputs to the parallel contract on the Geospatial Planning

Tool, and, finally, Chapter 7 presents the report’s conclusions.



8 ID.2016.R.007.1

2 EXISTING POWER GENERATION AND DISTRIBUTION SITUATION

2.1 CONTEXT

Although one of the ideas of ESMAP’s SHP mapping is ground-based monitoring of hydrology and

geotechnical site investigations, these were originally considered too difficult to conduct in Indonesia

within the time frame and budget of the project because of the geographic characteristics of the

territory, with a large number of islands and generally very steep terrain. Instead, ESMAP proposed the

focus of the validation process in Activity 1 to be on customizing the mapping of SHP to the unique

characteristics of the power grid in Indonesia, which is a result of the same difficult geographical

characteristics.

It is accepted that populated remote areas are very costly to link to the main grid and that the

traditional mapping of hydro potential based on larger schemes connected to HV lines may not always

be the best alternatives.

This chapter presents an overall review of the existing power generation and distribution situation in

Indonesia in general, and in NTT, Maluku, Maluku Utara, and Sulawesi in particular. It serves as an

introduction to the assessment presented in the next chapter, where SHP’s role as a generation option

is addressed.

2.2 INDONESIA

2.2.1 CURRENT SITUATION

Indonesia is estimated to have the world’s 16th largest GDP in 2016, having maintained a growing

economy even in face of a global economic slowdown. Indonesia’s economic growth is dependent on

the country’s ability to secure access to reliable and cost-effective energy sources, given that the energy

demand has been growing steadily in the past few years. [1]

Furthermore, its vast territory, comprised of 17 508 islands, is home for over 250 million people, making

Indonesia the fourth most populated country in the world, only behind China, India and the United

States of America. More than half of the country’s population lives in the Jawa-Bali region, the region

where Indonesia’s economic activity is mostly focused. The rest of the population is spread out across

Sumatera, Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua. This island geography makes

transportation and service provision, such as providing electricity and energy services nationwide, a

challenge needed to be overcome. [2]

Given the aforementioned, some remote populated areas become very costly to connect to the existing

grid. In such areas, electricity is supplied through isolated grid systems, that are based mainly on LV and

MV lines and that need independent power generation sources. On the other hand, in large electricity

systems, such as Sumatera, Jawa-Bali and Sulawesi, there are already extra high voltage (EHV)



9 ID.2016.R.007.1

transmission lines, that form the backbone of the electricity systems. Moreover, a connection between

the Jawa-Bali and the Sumatera systems is also planned, as depicted in Figure 2.1. Taking Sumatera’s

grid as an example, it is important to highlight that one of the advantages of connecting a system to the

grid is that this allows the transmission of electricity from power plants with cheap energy sources to

regions lacking those types of source, and which were consequently using more expensive ones, such as

diesel-fueled power plants. [3], [4]

The Indonesian electricity distribution service is monopolized by PLN, which is the sole supplier of

electricity to the public and business. Although some private electricity companies are operating, they

are only allowed to sell the electricity produced to the public through the power system owned by PLN.

Additionally, PLN is the entity responsible for achieving the government’s generation targets, but the

generation capacity is distributed between PLN and independent power producers (IPP), with PLN

having the right of first refusal over every activity in the electricity sector.

At the end of 2014, PLN owned and operated units totaling 37.4 GW of installed capacity, representing a

3.99% increase from the previous year. Including IPPs’ power plants, the total generation capacity of the

country was 53.1 GW. The total generating capacity per type of power plant is pictured in Figure 2.2,

with a predominance of steam-based generation, which accounted for more than 47%, having

hydropower plants accounted for 9.9% of the total installed capacity. In the same pictures, “Others”

generation accounts for solar, wind, coal gasification and waste power plants, totaling 0.1% of the

national installed capacity. [3], [4]



10 ID.2016.R.007.1

Figure 2.1 – Development plan of the transmission system in Sumatera. [5]

Figure 2.2 – Total generating capacity per type of power plant in 2014. [4]

47.3%

19.1%

11.7%

9.9%

9.3%

2.6% 0.1%

Steam Turbine

Combined Cycle

Diesel

Hydro

Gas

Geothermal

Others



11 ID.2016.R.007.1

Considering the electricity sold by PLN, it is possible to see a steady increase: while in 2009 the

electricity sold amounted to 133.1 TWh, in 2014 this value was 198.6 TWh. This growth is also related to

the increase in the number of customers, from 39.8 million to 57.5 million, and in the electrification

ratio, from 63.5% to 84.4%, between 2009 and 2014. It was also observed that the major share of

electricity sold was to residential consumers, followed by industrial and commercial ones, and finally by

the “Others” group (social/government office buildings and public street lighting). The evolution of

electricity consumption between 2012 and 2014 for each type of consumer is displayed in Figure 2.3

below. [3]

Figure 2.3 – Electricity consumption per type of customer. [4], [6], [7]

Along with the investment in energy generation facilities, in order to strengthen the electricity systems

and to provide electricity to non-electrified regions, investment in transmission and distribution lines is

needed. The development of the transmission is focused on strengthening the existing grid, as well as

interconnecting islands and establishing connections with neighboring countries when such investments

are feasible. On the other hand, distribution investment is focused on the improvement of electricity

supply quality, on the reduction of distribution losses and on the replacement of aged distribution lines.

The deterioration of the existent distribution network, due to the lack of maintenance, has caused

overloading and unreliability in energy supply in certain regions.

A compilation of several important characteristics of Indonesia’s electricity grid is tabled in Table 2.1

below, which includes the total installed capacity in the country, the peak load, the transmission and

distribution network lengths, the amount of energy sold to customers, the number of customers and the

electrification ratio (number of households with electricity to total number of households ratio),

between 2009 and 2014.

10 694

34 045

60 175

72 133

11 451

34 498

64 381

77 211

12 324

36 282

65 909

84 086

0

15 000

30 000

45 000

60 000

75 000

90 000

Others Commercial Industry Residential

Ele

ctri

city

co

nsu

mp

tio

n (

GW

h)

2012 2013 2014



12 ID.2016.R.007.1

Table 2.1 – Electricity statistics between 2009 and 2014. [4], [6], [7], [8], [9]

2009 2010 2011 2012 2013 2014

Installed capacity (MW) 30 915 33 983 39 899 45 253 50 990 53 066

PLN (MW) 25 466 26 895 30 529 33 221 35 947 37 380

IPPs (MW) 5 449 7 088 9 370 12 032 15 043 15 686

Peak Load (MW) 23 436 24 914 - 28 882 30 834 -

Transmission lines (km) 40 041 41 712 - 38 096 39 395 40 332

EHV (km) 5 092 5 052 - 5 052 5 053 5 053

HV (km) 34 949 36 719 - 33 044 34 342 35 278

Distribution lines (km) 639 517 681 762 - 741 956 798 944 925 312

MV (km) 268 611 288 719 - 313 049 329 465 339 558

LV (km) 370 905 390 704 - 428 907 469 479 585 754

Energy sales (GWh) 13 451 834 147 297 157 992 173 987 187 541 198 602

Number of customers 40 033 384 42 435 387 45 895 145 49 793 626 53 996 208 57 493 234

Electrification ratio 66.3% 67.2% 73.0% 76.9% 80.5% 84.4%

Analyzing the previously presented table, it is possible to see a clear growth in Indonesia’s electricity

sector. All the tabled factors have constantly grown between 2009 and 2014, of which it is important to

highlight the total installed capacity and the number of customers. An average growth of about

3.5 million customers per year implies significant investment in power generating facilities and in

transmission and distribution lines in order to supply the energy needed. In fact, while in Jawa and Bali

there is now enough generation to meet the power demand, shortfalls in electricity supply are often

experienced in Sumatera and East Indonesia, as well as in smaller energy systems. In these areas, where

the installed capacity does not have a large enough reserve margin, shortage in electricity supply results

in extensive use of diesel generating power plants and in blackouts.

2.2.2 DEVELOPMENT PLANS

According to the RUPTL [3], Indonesian electricity consumption is expected to more than double

between 2015 and 2024, with 464 TWh of energy consumption forecasted for 2024, as shown in Figure

2.4 below. This increase represents a yearly mean growth of 8.7% nationwide, although roughly 70% of

the total energy consumption is still related to the Jawa-Bali region.

The growth in power demand is, depending on the region considered, associated with different types of

costumers: while in Jawa-Bali the growth is mostly related to increase in industrial consumers’ power

demand, in Sumatera and East Indonesia this growth is due to the increase of electricity consumption by

residential customers, as depicted in Figure 2.5.

Short-term solutions to cope with the increase in electricity demand include renting generation capacity,

although it is also important to take into account the costs of the existing generation power plants. As

such, together with the necessity of satisfying the increasing demand, Indonesia aims to replace the use



13 ID.2016.R.007.1

of diesel fuel for more cost-effective energy sources, with the development of renewable energy

projects being prioritized, where available, to supply local grids.

Figure 2.4 – Regional demand growth between 2015 and 2024. [3]

Figure 2.5 – Regional demand growth between 2015 and 2024 per type of customer (TWh). [3]



14 ID.2016.R.007.1

Considering the increase in energy demand, from 219 TWh in 2015 to 464 TWh in 2024, related to an

estimated increase in the electrification ratio from 87.7% to 99.4%, PLN plans on adding 70.4 GW of

installed capacity until 2024. According to the RUPTL 2015-2024 [3], with the detailed yearly plan shown

in Figure 2.6, 21.4 GW shall be developed by PLN, 35.5 GW by IPPs and the remaining 13.5 GW are yet to

be decided.

Figure 2.6 – Additional installed capacity per type of owner and operator. [3]

The plans to include this additional capacity are mainly based on the introduction of coal-fired power

plants, which account for almost 60% of the total planned additional capacity. Hydropower plants,

including SHP in isolated systems, will amount to 13.4% of the total value, followed by combined cycle

and geothermal power plants, with contributions of 13.0% and 6.8%, respectively. The information

relative to the amount of capacity added each year per type of technology is displayed graphically in

Figure 2.7 below.

3 783 4 212

6 389

9 237

19 320

5 079 4 319 4 617

6 147 7 334

0

5 000

10 000

15 000

20 000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Ad

dit

ion

al in

stal

led

cap

acit

y (M

W)

PLN IPP Unallocated

3 783 4 212

6 389

9 237

19 620

5 079 4 319 4 617

6 147 7 334

0

5 000

10 000

15 000

20 000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Inst

alle

d c

apac

ity

(MW

)

Coal Hydro Combined Cycle Geothermal Gas Turbine/Gas Engine Others



15 ID.2016.R.007.1

Figure 2.7 – Additional installed capacity per type of technology. [3]

Indonesia’s investment in coal-fired power plants is particularly evident in 2019, with an increase of

more than 16 GW of installed capacity. Analyzing also Figure 2.6, it is possible to conclude that most of

the investment in coal-fired power plants is made by IPPs. Finally, it is possible to state that the

investment in Gas Turbine/Gas Engine and Combined Cycle power plants is only relevant until 2018.

After 2018, apart from the investments in coal-fired power plants, only investments in hydropower and

geothermal energy are substantial.

PLN has also prepared a development plan for New and Renewable Energy (EBT), where the

implementation of several types of renewable power plants are included, using hydropower, PV power

plants, biomass and wind energy, among others. Less conventional energy sources, such as ocean

energy and crude palm-oil are also planned to be developed. While crude palm oil power plants have

been already tested in Indonesia, harnessing the ocean’s energy will be done through pilot projects, as

the technology is not mature yet. Moreover, investment in technologies that aim to replace diesel

generation is also planned. These power plants consist mostly on gas-fired power plants, either gas

turbines, gas engines or combined cycle power plants, with the objective to decrease the operational

costs. Figure 2.8 shows the contribution of each type of power plant for the period between 2015 and

2024, totaling 3.4 GW of installed capacity. [3]

Figure 2.8 – Development plan for New and Renewable Energy 2015-2024. [3]

To meet the power requirements during the period of 2015-2024, RUPTL [3] has also set a mid-period

target of installing 35 GW until the end of 2019, excluding 6.6 GW of projects which are already under

construction or have been commissioned meanwhile. According to the RUPTL 2015-2024 [3], aside from

those 6.6 GW, there are already 17 GW of committed projects and 18.8 GW of projects in the planning

stage. Every project until 2019 is already assigned: 18 GW assigned to PLN and 24.9 GW assigned to

IPPs, totaling 42.9 GW of new installed capacity between 2015 and 2019.

1 542

435

400

385

321

250 38

3 371

0

1 000

2 000

3 000

4 000

Small hydro Biomass Wind Crude palm-oil Solar PV Dieselreplacement

Ocean Total

Inst

alle

d c

apac

ity

(MW

)



16 ID.2016.R.007.1

The plan for the development of transmission and distribution lines until 2019 is also detailed in the

RUPTL [3]. Of the 45 396 km of total planned transmission lines, 9 035 km are 500 kV or 275 kV

transmission lines and 36 361 km are 150 kV or 70 kV transmission lines. Additionally, the development

of the transmission networks includes plans for 472 new transmission substations. The development

plans for the distribution networks comprise the addition of 82 210 km of distribution lines until 2019,

roughly 16 500 km of new distribution lines per year.

The plans until 2024 will cost a total of 132.2 USD billion, broken down as follows in Table 2.2, bearing in

mind that IPPs’ investment is related to generation only.

Table 2.2 – PLN and IPP investment between 2015 and 2024 (USD million). [3]

Generation Transmission Distribution Total

PLN + IPPs 87 100 20 600 14 500 132 200

PLN 24 300 20 600 14 500 69 400

IPPs 62 800 - - 62 800

2.3 SULAWESI


The island of Sulawesi, the world’s 11th largest island, is separated in six administrative divisions or

provinces: Sulawesi Utara, Gorontalo, Sulawesi Barat, Sulawesi Tengah, Sulawesi Selatan and Sulawesi

Tenggara.

Sulawesi’s power generation by type of technology and per province is shown on Figure 2.9, where

major disparities are observed related to the installed capacity in each province – Sulawesi Barat’s 9 MW

of capacity contrasts with Sulawesi Selatan’s 1 746 MW, having almost two hundred times less capacity.



17 ID.2016.R.007.1

Figure 2.9 – Installed capacity in Sulawesi per province in 2014. [4]

Moreover, the province with the second highest installed capacity, Sulawesi Tengah, with 484 MW

already installed, considerably less than Sulawesi Selatan, where more than half of the island’s total

generation is installed. Finally, both in the previous figure and in Figure 2.10 below it is possible to

observe the predominance of diesel-based generation, followed by hydro and steam power plants. A

part of the diesel generation consists of rented power plants, totaling 513 MW of rented installed

capacity, which is half of the island’s total diesel-fueled generation.

Figure 2.10 – Installed capacity in Sulawesi in 2014. [4]

1 746

484

378 234 78

9 2 930

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Sulawesi Selatan Sulawesi Tengah Sulawesi Utara SulawesiTenggara

Gorontalo Sulawesi Barat Total

Inst

alle

d c

apac

ity

(MW

)

Diesel Hydro Steam Turbine Combined Cycle Gas Geothermal Others

34.5%

29.5%

20.3%

6.7%

6.2%

2.7% 0.1%

Diesel

Hydro

Steam Turbine

Combined Cycle

Gas

Geothermal

Others



18 ID.2016.R.007.1

Regarding the island’s power transmission, PLN reports that Sulawesi Selatan is the province with the

most extensive transmission system, consisting of more than 2.2 thousand kilometers in transmission

lines. Of those, almost 95% are 150 kV lines, with the remaining having between 25 and 70 kV.

Additionally, it was reported that both Gorontalo and Sulawesi Barat only have 150 kV transmission

lines, while other provinces also have 25-30 kV and 70 kV transmission lines. Of all the provinces,

Sulawesi Tenggara is the one with the smallest transmission network, comprised only of 24 km of

transmission lines. [4]

Sulawesi’s distribution network consists of 38 936 km of MV lines and 36 801 km of LV lines. Once more,

Sulawesi Selatan has the most extensive distribution network, with more than 25 thousand kilometers

of distribution lines. On the other hand, Sulawesi Tenggara’s distribution system, which has

approximately 8 thousand kilometers, is more extensive than the one found in Sulawesi Barat, having

roughly 2.8 thousand kilometers. [4]

Furthermore, Sulawesi’s average electrification ratio is approximately 76.5%, ranging from 69.6% in

Sulawesi Utara to 85.1% in Sulawesi Tenggara. Sulawesi Selatan is the province with most customers,

accounting for almost half of the total 3.4 million customers in the island, of which most are residential

customers. [4]

Table 2.3 summarizes the status of Sulawesi’s power generation, transmission and distribution in 2014,

based on PLN’s 2015 statistics.

Table 2.3 – Electricity statistics in Sulawesi per province in 2014. [4]

Sulawesi Selatan

Sulawesi Tengah

Sulawesi Utara

Sulawesi Tenggara

Gorontalo Sulawesi

Barat Total

Installed capacity (MW) 1 746 484 378 234 78 9 2 929

PLN (MW) 446 141 292 124 29 3 1 035

IPPs (MW) 1 096 257 3 0 23 4 1 383

Rented (MW) 205 87 83 110 26 2 513

Transmission lines (km) 2 238 275 699 24 648 381 4 265

Distribution lines (km) 25 802 12 229 17 073 7 999 9 872 2 762 75 737

MV (km) 12 018 5 979 12 895 4 236 2 339 1 469 38 936

LV (km) 13 784 6 250 4 178 3 763 7 533 1 293 36 801

Number of customers 1 688 746 486 678 545 731 357 158 198 087 166 398 3 442 798

Electrification ratio 75.6% 85.5% 69.6% 85.1% 74.1% 66.8% 76.5%


The development plans for Sulawesi until 2025 are shown in Figure 2.11, where almost 5.9 GW of

projects are identified throughout the island. RUPTL separates Sulawesi in North and South, considering

the Norther part as the Sulbagut system, and the Southern part the as Sulbagsel system. [5]

In the north, 1.2 GW of new generation capacity are planned to be added until the end of 2024, mostly

consisting of coal-fired power plants, with 714 MW, but also gas, geothermal and hydro power plants,



19 ID.2016.R.007.1

contributing with 350 MW, 120 MW and 42 MW, respectively. With the increase of coal-based

generation, as well as with the gradual replacement of diesel for gas and combined cycle power plants,

the use of oil for power generation is expected to be reduced. [5]

The south Sulawesi system development plan includes the integration of the Sulbagsel system, formed

by the integration of Sulawesi Tengah, Sulawesi Barat, Sulawesi Tenggara and Sulawesi Selatan systems.

This is expected to balance existing deficits in Tengah’s and Tenggara’s systems, as there is a surplus in

power generation in Barat’s and Selatan’s systems. The development plans for the region aim to meet

the increasing power demand, planning on the installation of 4.6 GW until 2024. A strong bet on

hydropower, related to the potential of such resource in the island, is translated in the development of

2.1 GW of installed capacity during the period. Also, 1.2 GW and 1.1 GW of coal and gas-based power

plants are expected to be added, as well as 60 MW of geothermal energy. Development plans in south

Sulawesi also aim to interconnect sub-systems, as stated previously, including the connection of isolated

systems to the grid, with the development of the transmission system. Again, oil-based power

generation is expected to be reduced through the addition of other energy sources. This type of

generation is expected to be stopped by the end of 2019. [3], [5]



20 ID.2016.R.007.1

Figure 2.11 – Development plans in Sulawesi between 2016 and 2025. [5]

2.4 MALUKU & MALUKU UTARA


The Maluku islands, an archipelago of approximately one thousand islands, were split in two provinces

in 1999: Maluku and Maluku Utara (North Maluku).

Based on PLN’s statistics in 2015 [4], both provinces relied almost exclusively on diesel-fueled power

plants, as shown in Figure 2.12, whether owned or rented by PLN. While Maluku Utara has a 100%

diesel-based system owned by PLN, totaling 48 MW, Maluku’s electricity is generated through 0.9 MW

of solar power plants and 294.2 MW of diesel generation, of which 146.7 MW are owned by PLN and the



21 ID.2016.R.007.1

remaining 99.5 MW are rented. Also, there are no IPPs operating on either of the provinces. As such, in

the Maluku archipelago only 0.3% of the generation is non-diesel.

Figure 2.12 – Installed capacity in Maluku and Maluku Utara in 2014. [4]

The power plants in Maluku Utara are spread throughout the province, and most of the smaller systems

are connected directly to the 220 V low voltage network. Similarly, in Maluku the power generation

system consists mostly on scattered small diesel-fueled generation units connected to the low voltage

network, although there is also solar capacity installed.

Table 2.4 contains a summary of the relevant information about Maluku’s and Maluku Utara’s power

sector. In this table, it is possible to see that there is no transmission system in any province, as the

demand is mostly residential and fairly concentrated, with poorly developed systems in some islands.

The existing distribution networks total 5 738 km in Maluku and 3 670 km in Maluku Utara. Additionally,

every MV distribution line has between 15 and 20 kV, with only 4 of the 41 Indonesian regions

considered in PLN’s Statistics having MV lines with lower voltages. [4]

247.1

48 295.1

0

100

200

300

Maluku Maluku Utara Total

Inst

alle

d c

apac

ity

(MW

)

PLN Diesel Rent Diesel PLN Solar



22 ID.2016.R.007.1

Table 2.4 – Electricity statistics in Maluku and Maluku Utara in 2014. [4]

Maluku Maluku Utara Total

Installed capacity (MW) 247.1 48 295.1

PLN (MW) 147.6 48 195.6

IPPs (MW) 0 0 0.0

Rented (MW) 99.5 0 99.5

Transmission lines (km) 0 0 0

Distribution lines (km) 5 738 3 670 9 408

MV (km) 3 885 2 281 6 166

LV (km) 1 853 1 389 3 242

Number of customers 270 044 172 312 442 356

Electrification ratio 74.7% 82.3% 79.0%


Maluku

Electricity consumption in Maluku is expected to increase almost threefold between 2016 and 2025.

Such projection leads to an urgent planning of additional capacity, as certain issues related to shortage

in power supply arise. Especially in Ambon, but also in other regions, power supply is inadequate and

still relies on diesel. The implementation of a non-oil power generation and a transmission system

remains the bottleneck in Maluku’s power sector development. [5]

Development plans in the region include not only the addition of new capacity, but also the reduction of

diesel dependence. To meet the power requirements, priority will be given to renewable energy

sources, such as hydro, geothermal and solar power plants. Additionally, the development of gas-fired

power plants is expected to assist in meeting the power demand, including a 30 MW power plant in

Ambon, expected to be operational by the end of 2017. A total of 535.8 MW are expected to be

installed in Maluku, as shown in Figure 2.13, where it is possible to observe the amount to be invested in

gas generation technologies. Additionally, diesel power plants will be built in the smallest and outermost

islands, to ensure a sufficient supply of electricity near the border. [5]



23 ID.2016.R.007.1

Figure 2.13 – Power generation development plant in Maluku between 2016 and 2025 (RUPTL).

Along with the development of the power generation plants, 70 kV and 150 kV will be built in Maluku, to

supply power from the plants to the load center. During the period 2016-2025, a total of 663 km of

transmission lines will be built, of which 337 km and 326 km are 70 kV and 150 KV transmission lines,

respectively. The plans for power generation and transmission networks in the islands of Ambon, Seram

and Buru are shown in Figure 2.14 and Figure 2.15. The investment in the transmission system amounts

to approximately 96 USD million of the 896 USD million for Maluku’s power sector development. [5]

As for the distribution networks, their development is expected to connect around 154 thousand new

customers until 2025, with the addition of 2 246 km of distribution lines. This aims to increase the rural

electrification ratio, as well as to connect isolated systems with renewable generation potential that still

rely of diesel-based power generation. [5]

295

130

54.8 20

20 10 6 535.8

0

200

400

600

GasTurbine/Engine

Steam Hydro Geothermal Wind Solar Biomass Total

Inst

alle

d c

apac

ity

(MW

)



24 ID.2016.R.007.1

Figure 2.14 – Development plans in Ambon and Seram between 2016 and 2025. [5]

Figure 2.15 – Development plans in Buru between 2016 and 2025. [5]



25 ID.2016.R.007.1

Maluku Utara

The development plans for power generation, transmission and distribution in Maluku Utara aim to deal

with the increasing electricity needs in the province, and they envisage exploiting the potential of

primary energy in the region, taking into account the local geographical conditions.

These plans include the addition of 380 MW of new capacity, as seen in Figure 2.16, mostly based on gas

turbine and gas engine power plants, but also including steam turbines, geothermal energy and solar

power plants. As non-oil power plants are still being developed in Maluku Utara, mobile dual fuel power

plants, using both gas and diesel, will be used in the short-term to avoid power deficits in the system.

These dual fuel power plants will also be used in scattered islands to guarantee power supply and,

together with the optimization of geothermal energy systems, small-scale power plants will be gradually

replaced. Finally, given the strategic importance of islands bordering with neighboring countries, power

generation in those regions will be developed so as to ensure sufficient supply. [5]

Figure 2.16 – Power generation development plant in Maluku Utara between 2016 and 2025. [5]

As shown in Figure 2.17, there is also a transmission system planned to be developed in Maluku Utara,

specifically in the island of Halmahera. This network is particularly intended to connect geothermal

power plants to the load centers. Given the distance between them, 436 km of a 150 kV transmission

line will be constructed, including submarine lines. Of the total 710 USD million required for the power

sector development, 64 USD million are related to investment in transmission networks. [5]

The development of the distribution network in Maluku Utara is intended to connect 107 thousand new

customers until 2025, while connecting the islands that have renewable and cheap energy potential to

nearby islands where such potential does not exist. The plans for electricity distribution development

include 1 429 km of distribution lines. [5]

0

200

400

Gas Turbine/Engine Steam Geothermal Solar Total

Inst

alle

d c

apac

ity

(MW

)



26 ID.2016.R.007.1

Figure 2.17 – Development plans in Halmahera between 2016 and 2025. [5]

2.5 NTT


Nusa Tenggara Timur (NTT) is an Indonesian province consisting of 566 islands. The most significant

regions are the islands of Flores and Sumba, and the western part of Timor Island.

As observed in Figure 2.18, NTT’s power sector is dominated by diesel generation, as almost 82% of the

289.1 MW installed by the end of 2014 was fueled by diesel. The remaining 52.4 MW consist mostly on

steam and geothermal power plants, with a smaller share of hydro, solar and wind power generation

systems. Due to the large share of diesel used to generate power, the electricity production costs in NTT

are high. [4]

Additionally, only 3.6 MW of the installed capacity in NTT are owned and operated by IPPs, with PLN

owning and operating 195.6 MW and renting the remaining 89.7 MW. [4]



27 ID.2016.R.007.1

Some of the generation plants operate separately, using 20 kV MV lines, while some smaller systems,

especially diesel-based ones, supply power directly at 220 V. Solar power generation, through the use of

solar home systems, is mainly used to supply electricity in isolated regions, far from the urban centers,

where the load demand is still small. [4], [5]

Figure 2.18 – Installed capacity in NTT in 2014 (MW). [4]

Although PLN reports that by the end of 2014 there were no transmission lines in NTT in their 2015

Statistics report [4], 70 kV transmission lines in some systems are mentioned in the later RUPTL

2016-2025 [5]. Considering the distribution networks, a total of 13 121 km of distribution lines are

already operating, of which 6 024 km are MV and 7 097 km are LV distribution lines. [4]

Table 2.5 contains a summary of the power sector in NTT by the end of 2014. It is important to mention

that NTT’s electrification ratio in 2014, 58.9%, was the lowest provincial electrification ratio in all

Indonesia, behind Sulawesi Barat’s 66.8%, the second lowest ratio.

236.7

33.0

13.8

3.6

2.0

0.1

52.4

Diesel

Steam

Geothermal

Hydro

Solar

Wind



28 ID.2016.R.007.1

Table 2.5 – Electricity statistics in NTT in 2014. [4]

NTT

Installed capacity (MW) 289.1

PLN (MW) 195.6

IPPs (MW) 3.8

Rented (MW) 89.7

Transmission lines (km) 0

Distribution lines (km) 13 121

MV (km) 6 024

LV (km) 7 097

Number of customers 618 330

Electrification ratio 58.9%


In order to satisfy the increasing power demand in the province, to further electrify the region, and to

reduce diesel fuel dependence, so as to reduce operational costs, new power generation capacity is

planned to be installed in NTT between 2016 and 2025.

As Figure 2.19 shows, power generation addition comprises 736.5 MW of installed capacity, primary

constituted by steam and gas-based power plants, but also with geothermal power plants playing an

important role. The remaining generation is planned to be from renewable technologies, including solar,

wind, hydro and biomass power plants.

Figure 2.19 – Power generation development plant in NTT between 2016 and 2025. [5]

Similarly to what is being done in other Indonesian regions, in order to avoid short-term power deficits

in some of the systems with increasing power needs, dual fuel power plants are also being considered.

273

270

110 30

20 19.5 14 736.5

0

200

400

600

800

Steam Gas Geothermal Solar Wind Hydro Biomass Total

Inst

alle

d c

apac

ity

(MW

)



29 ID.2016.R.007.1

For example, to overcome this problem in Kupang, a 40 MW dual fuel power plant, using both gas and

diesel, is expected to be operational in 2017. Where renewable potential is available, power generation

from renewable energy sources is being prioritized. In Flores, an island with great geothermal potential,

100 MW in geothermal power plants are planned to be installed, of the total 110 MW in NTT. [5]

Once more, given the relevance of power supply near the borders to maintain the Republic’s integrity,

additional capacity in Timor will be considered as needed. In addition to this, as an effort to provide

reliable power near the border with Timor Leste, PLN will cooperate with Timor Leste’s utility, EDTL,

which may include the connection of both countries distribution networks near the border. [5]

The development of NTT’s power sector also comprises a transmission development plan in the three

major islands, with 70 kV and 150 kV transmission lines expected to be built in Flores, Timor and Sumba,

as is shown in Figure 2.20, Figure 2.21 and Figure 2.22, respectively. The transmission system will be

constructed in harmony with the development of power plants scattered on the islands, with a total of

1 924 km of transmission lines planned. This entails an investment of approximately 284 USD million in

transmission, from the total required investment of 1 667 USD million. [5]

Finally, to support the addition of about 694 thousand new customers, 7 225 km of distribution lines are

planned to be added in NTT, with 20 kV distribution lines, as well as well as low voltage distribution

lines. [5]

Figure 2.20 – Development plans in Flores between 2016 and 2025. [5]



30 ID.2016.R.007.1

Figure 2.21 – Development plans in Timor between 2016 and 2025. [5]

Figure 2.22 – Development plans in Sumba between 2016 and 2025. [5]



31 ID.2016.R.007.1

3 SMALL HYDROPOWER ROLE

3.1 CONTEXT

Access to electricity is a key factor for the development of a country and its population, as it provides

light, heat and power for productive uses and communication, among others. With a worldwide

increase in power demand, and Indonesia, as seen before, being no exception, sustainably increasing

power generation sources is crucial. In this context, SHP arises as a renewable and sustainable

alternative for power generation. Additionally, their low energy cost provides a cost-effective solution

for regions where grid-connection is not yet feasible, while cutting down the high carbon emissions of

the commonly-used diesel generators.

In this chapter, the SHP role in power generation is reviewed and analyzed, taking into account the

Indonesian context. Firstly the legal framework concerning the planning and developing of SHP plants is

thoroughly examined. The following section includes the study of strengths and weaknesses of using

SHP plants, focusing their use in isolated systems. Lastly, the challenges pointed out in the previous

sections are studied and possible solutions are suggested i

Documents

Small Hydro Resource Mapping in Indonesia€¦ · Small Hydro Resource Mapping in Indonesia SMALL HYDROPOWER POTENTIAL REPORT March 2017 Public Disclosure Authorized Public Disclosure