Name of organization(a):

Advanced Energy Systems Limited

Department:

Acronym:

AES

Function within activity:

Project Implementation

Street:

11 Brodie Hall Drive, Technology Park

City:

Bentley WA 6102

Country:

Australia

Telephone:

61-8-9470 4633

Fax:

61-8-9470 4504

E-mail:

------------

WWW-URL:

Contact person (for this activity):

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Surname:

Phillips

First name, middle name:

Stephen J.

Job title:

Managing Director

Direct tel:

-------------

Direct fax:

-------------

Direct E-mail:

-------------

Name of organization(a):

International Greenhouse Partnerships Office

Department:

Industry , Science and Resources

Acronym:

IGP Office/ISR

Function within activity:

Government AIJ/CDM administration

Street:

GPO Box 9839

Post code:

2601

City:

Canberra

Country:

Australia

Telephone:

61-2-6213 7891

Fax:

61-2-6213 7903

E-mail:

igp.australia@isr.gov.au

WWW-URL:

http://www.isr.gov.au/resources/energy_greenhouse/igp

Contact person (for this activity):

-------------------------------

Surname:

Stevens

First name, middle name:

Mark R.

Job title:

Assistant Manager, International Greenhouse Partnerships Office

Direct tel:

61-2-6213 7891

Direct fax:

61-2-6213 7903

Direct E-mail:

mark.stevens@isr.gov.au

Name of organization(a):

Export Finance and Insurance Corporation

Department:

Structured Trade & Project Finance

Acronym:

EFIC

Function within activity:

Project Finance

Street:

Export House, 22 Pitt Street

Post code:

2000

City:

Sydney NSW

Country:

Australia

Telephone:

61-2-9201 2111

Fax:

-----------------

E-mail:

WWW-URL:

Contact person (for this activity):

-----------------

Surname:

Howie

First name, middle name:

Nancy

Job title:

Senior Manager

Direct tel:

61-2-9201 2136

Direct fax:

61-2-9201 2295

Direct E-mail:

NHowie@efic.gov.au

Name of organization(a):

Australian Agency for International Development

Department:

Acronym:

AusAID

Function within activity:

Project Finance

Street:

GPO Box 887

Post code:

2601

City:

Canberra ACT

Country:

Australia

Telephone:

-----------------

Fax:

-----------------

E-mail:

WWW-URL:

Contact person (for this activity):

-----------------

Surname:

Fleeton

First name, middle name:

Mark

Job title:

Director, Indonesia Section

Direct tel:

61-2-6206 4750

Direct fax:

61-2-6206 4242

Direct E-mail:

mark_fleeton@ausaid.gov.au

Name of organization(a):

BPP Teknologi (Agency for the Assessment and Application of Technology)

Department:

Energy Technology Laboratory

Acronym:

BPPT/LSDE

Function within activity:

Project Implementation

Street:

--------------------

Post code:

15314

City:

PUSPIPTEK, Serpong, Tangerang

Country:

Indonesia

Telephone:

62-21-7560550

Fax:

62-21-7560904

E-mail:

lsdemail@mimo.bppt.go.id

WWW-URL:

Contact person (for this activity):

--------------------

Surname:

Mulyadi

First name, middle name:

Rachmat

Job title:

Head

Direct tel:

62-21-7560129, ext 1323, 1325

Direct fax:

62-21-7560904

Direct E-mail:

lsdemail@mimo.bppt.go.id

Name of organization(a):

Pt. Len Industri (Persero)

Department:

Acronym:

-----------------

Function within activity:

Project Implementation

Street:

Jalan Sukarno Hatta 442

Post code:

-----------------

City:

Bandung

Country:

Indonesia

Telephone:

62-22-5202682; 62-22-5202686; 62-22-5208036

Fax:

62-22-5202695; 62-22-5208036

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

Rivai

First name, middle name:

Dodi H.

Job title:

Director, Commerce

Direct tel:

-----------------

Direct fax:

-----------------

Direct E-mail:

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Name of organization(a):

Indonesian Ministry of Environment

Department:

Acronym:

Function within activity:

Government AIJ/CDM administration

Street:

JL. D. I. Panjaitan Kav. 42

13410

Post code:

13410

City:

Jakarta Timur

Country:

Indonesia

Telephone:

62/21/8580111; 62/21/8518138

Fax:

62/21/8580111; 62/21/8518138

E-mail:

WWW-URL:

Contact person (for this activity):

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Surname:

Sugandhy

First name, middle name:

Aca

Job title:

Assistant Minister for Environment

Direct tel:

62/21/8580111; 62/21/8518138

Direct fax:

62/21/8580111; 62/21/8518138

Direct E-mail:

sugandhy@cbn.net.id

General description:

The objective of this project is to design, install, monitor and evaluate the performance of solar/diesel hybrid power systems which are to provide electricity to 14 villages in eastern Indonesia. The systems will be used to provide affordable electricity for lighting and basic entertainment. In total, the hybrid energy systems will provide electricity to approximately 2,800 houses.

Rural Indonesian villages presently rely extensively on kerosene for lighting and the hybrid power supply systems will displace kerosene use for this purpose. Although there will be some reliance on diesel fuel for electricity production, the resultant greenhouse gas emissions will be far less that those avoided from the displacement of kerosene use. The reduction in emissions will arise from two factors;

. an increase in the overall energy efficiency with which lighting

services are provided; and

• . reliance on solar energy to meet 50% of the electricity requirements.

Type of project:a)

Renewable energy/energy efficiency

Location (exact, e.g. city, region,

state):

South Sulawesi

Activity starting date:

September 1999

Expected activity ending date:

September 2000

Stage of activity:b)

in advanced planning

Lifetime of activity if different from ending date:c)

The hybrid systems are designed to remain in operation beyond the completion of formal monitoring and reporting for AIJ/CDM purposes.

Technical data:d)

The systems will comprise an 8 kW photovoltaic array, 20 kVA inverter/charger, 86 kWh battery bank, 20 kVA diesel generator, solar regulator, control system and distribution network for an average of 200 houses.

Cost of the project in US$:

4.2 million (approx)

AIJ component in US$:

2.8 million (approx)

US$ per avoided ton of CO2 equivalent:

200 (20 year economic life)

Under the contractual arrangements between AES and the project financiers, AES is required to provide project implementation and project completion reports and provide six monthly reports on the uptake and physical installation of the hybrid energy systems. The hybrid power supply systems also will have communication mechanisms installed which will enable remote monitoring of the systems and associated networks. Further details of the arrangements for operating, maintaining, and assessing the performance of the systems are contained in Section C of this Report.

With regard to monitoring emission savings arising from the project, records of diesel fuel consumption and the number of houses provided with electricity will be retained by the organisations responsible for project implementation (AES, BPP Teknologi) and reported to the designated national authorities for AIJ/CDM purposes (Indonesian Ministry of Environment, International Greenhouse Partnerships Office) on a annual basis. The International Greenhouse Partnerships (IGP) Office will determine the extent to which greenhouse gas emissions are reduced from the use of electricity in place of kerosene for lighting. The IGP Office will also determine the extent to which emissions are increased by using diesel fuel to provide a portion of the overall electricity supply. By comparing the reductions in emissions arising from kerosene displacement and the increase in emissions from diesel fuel use, the IGP Office will determine the overall net reduction in emissions. Further information on the determination of greenhouse gas emissions is contained in Section E of this report .

This project has a variety of non-greenhouse benefits. Principal among these is the skill and technology transfer associated with the design, installation and operation of the hybrid energy systems to be used in this project.

The project will cover the training of operators on-site, the training of engineers at BPP Teknologi , the provision of supervision of on-site installation and maintenance. A test facility will also be established at BPP Teknologi’s Energy Technology Laboratories as part of the project to provide Indonesia with the capability to test system components. As part of the project, a social preparation stage will be undertaken which includes clarification of procedures to be adopted to ensure the project targets low-income households and details of the training program for the operation and maintenance of hardware in villages.

Within the context of the country’s sector developments, this project meets the requirements of the Indonesian Government in a number of ways. They include expansion of the electricity services in rural eastern Indonesia using environmentally sound technologies, the alleviation of rural poverty and the supply of infrastructure which will enhance the economic well being of the villages.

It is envisaged that an Integrated Electricity Plan (IEP) will be implemented at the village cooperative level (KUD) with revenue being collected through rural banks. BPP Teknologi in conjunction with appropriate planning authorities will select villages which meet the following general criteria including future access to state electricity utility (PLN) connection, availability of other power sources, income levels and ability to enter into management and training/service programs. The local village KUD or another authorised KUD will manage designated locations at which electricity will be prepaid and will also be involved in future electricity demand and supply side management options.

In Indonesia, there are some 24 million rural households without electricity. The provision of electricity to these households is a major priority for the Indonesian Government. In recent years some 800,000 households have been provided with a new electricity supply each year, primarily by being connected into a centralised electricity grid.

A recent World Bank-funded study into solar-based rural electrification concluded that such systems could be an economically viable option for up to 25-40% of non-electrified households (ie. 6-10 million houses). Renewable energy technology typically has significantly less impact on the environment, both at a local and global level, than conventional energy sources (eg. coal, oil). By increasing the use of renewable energy where it is economically viable, the project will contribute to the twin goals of sustainable development and economic growth, particularly in the less economically endowed rural regions of Indonesia.

Sensible application of renewable energy systems to meet Indonesia’s economic development objectives is important for other reasons. Indonesia’s move away from being an oil dependent economy to one based on value-added manufacture exports has set in motion an energy-dependent growth path. Estimates reveal that the growth in domestic energy demand averaged around 7% throughout the 1980s but will increase 3-fold in the 1990s and 14-fold by the year 2020. This economic growth will be fuelled by rapid industrial output producing unprecedented levels of urban and industrial pollution placing a great strain on Indonesia’s human and natural environments. The importance of renewable energy technologies is highlighted by the Indonesian Government as an important aspect of Indonesia’s sustainable development.

Describe environmental benefits in detail:

The adoption of this program is aimed at reducing electricity consumption, consequently avoiding the consumption of diesel fuel which is used to generate the electricity. The resultant reduction in diesel fuel consumption will have positive global environmental benefit through a reduction in emissions of greenhouse gases. There will also be local environmental benefits from a reduction in the use of diesel including a reduction in local air pollution and a reduced risk of spillage of diesel fuel, which could potentially have a major adverse impact in an environmentally sensitive environment (eg. coral reefs).

Do quantitative data exist for evaluation of environmental benefits?

Yes

Describe social/cultural benefits in detail:

The project will have positive social benefits through the increase in local employment to service hybrid energy systems. The project will also have a positive impact on the balance of payments of Indonesia by reducing the domestic demand for petroleum products (diesel) and enabling Indonesia to remain an exporter of crude oil. There are good prospects for attaining a high local content from the use of hybrid energy systems. Even in this initial project, Indonesian content will be in excess of 45%.

Do quantitative data exist for evaluation of social benefits?

No

Describe economic benefits in detail:

The hybrid energy project will reduce costs of providing a 24-hour/day electricity supply to rural areas of Indonesia. The provision of a 24-hour/day electricity supply at relatively low marginal cost opens up the prospects for village-based industry.

Do quantitative data exist for evaluation of economic benefits?

Information gathered from this project will enable an assessment to be made of the costs and benefits of hybrid energy systems.

GHG

Over Project Year

A) Project baseline scenario

CO2

1344 tonnes

B) Project activity scenarioa)

CO2

298 tonnes

C) Effect ( B-A )

CO2

1046 tonnes

D) Cumulative effect

CO2

(For each source one line)

(US dollars)