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PLN COMMITMENT in RENEWABLE ENERGY DEVELOPMENT towards

ACCHIEVING NEW &RENEWABLE ENERGY TARGET

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INDONESIA EBTKE CONEX 2014Jakarta, june 4, 2014

Moch. Sofyanm.sofyan@pln.co.id

Head of New & Renewable Division of PT PLN (Persero)

Electricity Demand Forecast 2013-2022High demand growth as of 8.4% annually.

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Tahun 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Demand (TWh) 189 207 226 244 264 284 306 329 356 385

Elec. Ratio ( % ) 79.6 82.6 85.9 88.9 91.9 93.7 96.3 96.8 97.4 97.7

New Power Plant Capacity Addition (Incl. IPP)

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• Total additional capacity until 2022 is around 59,5 GW.

• Contribution of IPP will be increased.

.

Additional capacity :

CFPP : 37,7 GWGeoPP: 6,2 GWCCGT : 4,8 GWGT/Gas Engine : 3,6 GWHidro/Mini Hidro : 7,1 GWOthers : 0,2 GW

Generation Mixed Projection

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214 683 GWh 437 207 GWh

Coal

Coal

-

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

20,0

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total Investasi PLN+IPP Total Investasi PLN Pembangkit PLN+IPP

Transmisi Distribusi Pembangkit PLN

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Investment for 2013-2022IPP Investment total share of 43 % ( 58 % IPP share in generation )

Generation PLN : 38,1 billion US$Generation PLN+IPP : 89,9 billion US$Transmission : 17,4 billionUS$Distribution : 14,5 billion US$

Total PLN : 68,3 billion US$Total PLN+IPP : 121,8 billion US$

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Billion US$

Additional Capacity of Renewable Energy( RUPTL 2013-2022)Total Capacity : 14.531 MW ))

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Other 54 114 141 94 87 123 158 170 180 185

Geothermal 0 60 30 85 580 495 1665 650 670 1825

MHPP 33 42 96 149 237 192 186 156 190 200

HEPP 0 20 45 0 1381 284 386 1121 1623 824

0

500

1000

1500

2000

2500

3000

3500

Inst

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paci

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W)

Year

Other

Geothermal

MHPP

HEPP

Other : 1306 MWGeothermal : 6060 MWMW

MHPP : 1481 MW HEPP : 5684 MW

Additional Capacity of Geothermal as of PLN - RUPTL 2013-2022(Total 6060 MW)

• Most geothermal plants are expected to be commissioned between 2017 –2022.

• Exploration and financing are the critical factors. Some of those WKP not yet offered to investors/bidding has not taken place.

• Strong Regulatory and permits are required .

• Most geothermal (93%) will be developed in Java and Sumatra, 89 % will be developed by IPP.

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RENCANA TAMBAHAN KAPASITAS PLTP MASUK SISTEM PLN SESUAI RUPTL 2013-2022TAHUN 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTALSUMATRA 0 0 0 55 330 445 360 490 405 770 2855JAWA-BALI 0 55 30 30 225 0 1275 110 220 855 2800LUAR JBS 0 5 0 0 25 50 30 50 45 200 405TOTAL 0 60 30 85 580 495 1665 650 670 1825 6060KOMULATIF 0 60 90 175 755 1250 2915 3565 4235 6060

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MW

Pengembangan PLTP sesuai RUPTL (2013-2022)

IPP/Liswas

PLN

Hydropower Development Plan( Add. Capacity : 5.684 MW + 1.480 MW small Hydro )

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200

400

600

800

1000

1200

1400

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Inst

alled

Cap

acity

(MW

)

Year

Java-Bali

West Indonesia

East Indonesia

• FTP II (11 projects with total 1753 MW)o PLN Projects : 3 large hydro power projects with the total 1269 MW (174 MW

under construction, 1040 MW Pre construction and 55 MW under study and design)o IPP Projects : 8 large hydro power projects with the total 484 MW (45 MW HEPP

under construction)

• Non FTP II :o 4 PLN’s hydropower projects (266.4 MW) under constructiono 4 IPP’s hydropower projects (1,409 MW) under PPA negotiationo 42 Mini hydro ( PLN & IPP ) projects (190 MW) under construction

Hydropower Development StatusConstruction (1,525.4MW), PPA nego (1,819 MW) & Study/Design (2,131 MW)

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NORTH SUMATERA ( 219 MW )

1. ASAHAN III (174 MW) 2. WAMPU (45 MW)

ACEH ( 86.4 MW )

1. PEUSANGAN 1&2 (86.4 MW)

WEST JAVA ( 1,150 MW )

1. UPPER CISOKAN PS (1,040 MW) 2. JATIGEDE (110 MW)

PAPUA ( 70 MW )

1. GENYEM (20 MW)2. BALIEM (50 MW)

LAMPUNG( 56MW )

1. SEMANGKA(56MW)

JAMBI ( 350 MW )

1. MERANGIN (350 MW)

ACEH( 144 MW )

1. PEUSANGAN IV (85 MW) 2. MEUREBO-2 (59 MW)

WEST JAVA( 40 MW )

1. RAJAMANDALA (40 MW)

SOUTH & WEST SULAWESI( 640 MW )

1. MALEA (90MW) 2. BONTOBATU (100 MW)3. KARAMA ( 450 MW )

NORTH SUMATERA ( 589 MW )

1. BATANG TORU (550 MW) 2. HASANG (39 MW)

TAHAP KONSTRUKSI

NEGOSIASI PPA

TAHAP STUDY / DESIGN

NORTH SUMATERA ( 90 MW )

1. SIMANGGO-2 (90 MW) WEST SUMATERA ( 52 MW )

1. MASANG-2 (52 MW)

KALIMANTAN ( 313 MW )

1. KUSAN (65 MW) 2. NANGA PINOH (98 MW)3. KELAI (150 MW)

SULAWESI ( 437 MW )

1. SAWANGAN (12 MW) 2. BAKARU II (126 MW)3. POKO (234 MW)4. KONAWE-1 (50 MW)5. WATUNOHU (15 MW)

MOLUCCU ( 54 MW )

1. TALA (54 MW)

PAPUA( 56.5 MW )

1. WARSAMSON (46.5 MW)2. ORYA-2 (10 MW)

NUSA TENGGARA( 34.5 MW )

1. WAI RANCANG (16.5 MW)2. BEH-1 (18 MW)

JAVA( 1,094 MW )

1. KARANGKATES 4&5 (100 MW)2. KESAMBEN (32 MW)3. KALIKONTO (62 MW)4. MATENGGENG PS (900 MW)

Key Issues

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Strong Regulatory • Permits, integrated planning• Land compensation• Social issues• Project Developer Qualification

Financing and tarif• Subsidy policy.• Electricity tariff (automatic adjusted mechanisme to customer )• Risk allocation ( exploration risk in Geothermal )• Incentives ( taxes, fiscal )

Sector Restructuring• Power wheeling• Business model

HRD & Technology support• HRD and Domestic industry support• Grid integration for intermittent power• Utilization of CPO for Diesel Generator

Thank You

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