Streamlining Solar PV Projects to Support

the 5,000 MW Target in 2019

1aMarkus Straslicka. Tetra Tech.

Bali, Indonesia, 11 – 12 February 2016

BALI CLEAN ENERGY FORUM

Nusa Dua, 11-12 February 2016

Development Environment

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Support Challenges

Ambitious Schedule, 5 GW 2019 • Diversity of Scenarios

Government Support • Complex Logistics

New Regulation • Grid Integration

Clean Market • Site Allocation

Utility Receptive • Market Development

Balanced Foundation for Development.

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Achieve

5 GW

Target 2019

Regulatory & Permitting

Market

Size & Mechanisms

$ / kWh

& Payback Security

Balanced Foundation for Development.

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Kick Start

Support

Competitive

Market

Target Support. Adaptive Policies

Balanced Foundation for Development.

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Target Support. Adaptive Policies

Certainty: No discretionary decisions in the permitting chain.

Predictability: Every process must have a deadline and defined roadmap.

Structured: Who does what, under what criteria, in how much time.

Simplicity: Clean stepped process with no back loops.

Attractive: Market, participation mechanics and incentives.

Transparent: All processes must follow public known guidelines.

Sustainable: Predictable growth in market size and price.

Balanced Foundation for Development.

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Target Support. Grid Integration & Support

Main Development Opportunities.

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System Groups Platform Main Location Remarks

Rooftops Industrial

Commercial

Residential

Java-Bali Residential expected to be

small

Below 3 MW plants Ground Country Wide Expedite land permitting

Close to SubS, on 20 kV

Below 10 MW plants Ground Outside Java-Bali Within certain radius of

SubS, mainly on 20 kV

Above 10 MW plants Ground Outside Java-Bali PoC’s expected in 150 kV

Hybrid on Existing

Generation

Ground &

Rooftops

Outside Java-Bali &

Mainly over Dgen

High development

expected

Micro & Mini Grids

New Developments

Ground &

Rooftops

Outside Java-Bali New designs benefit from

higher efficiency

Streamlining Solar Projects. Development Diversity.

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Same Basis, Specific Approach.

Mini & Micro

Grids

Hybrid Systems

Ground Systems

Rooftops

Streamlining Solar Projects. Developer Model.

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Project Centric Approach vs Business Centric Approach

Project

Engineering

Business Model

Procurement

ConstructionBusiness

Model

Engineering

Procurement

Construction

Project

Streamlining Solar Projects. Developer Models.

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Mid to Large Scale Projects

Subcontractors

Main Subcontractor A

Specialized Sub A1 … Ax

Main Subcontractor X

Specialized Sub X1 … Xy

EPC Contractor

Engineering

Procurement

Permitting

Construction

IPP Developer

Legal

Guarantees

Finance

Insurance

Streamlining Solar Projects. Integrated Developer

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• Logistics

• Permitting

• Specialized Contractors

• Site Capacity

• Direct Construction Management

• Legal

• Financial

• Insurance

• Guarantees

• Design

• Permitting

• Engineering

• Procurement

EPC IPP

LocalSite

Small to Mid Scale Projects

Overview of Solar PV Technologies and Systems

Main components by cost share:

PV Modules 44.30 %

Inverter 7.49 %

Mounting/Racking 5.99 %

Balance of System 42.22 %

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Overview of Solar PV Technologies and Systems

Balance of system. The Main Local Component.

• Design & Engineering.

• Topo & Geotech Study.

• ESIA.

• Permitting & Licenses.

• PoC Agreements.

• Installation Insurance.

• EPC Package:

• Site conditioning & logistics.

• Civil works, ground works, trenching

and backfilling.

• Passive security, fences, access.

• Cabling & ducting, DC, AC, HV, Comms

Install.

• Specialized labor (AC/LV electrical, DC

connections).

• Mechanical General Labor.

• Comms & SCADA Systems.

• AC/DC Testing.

• Step Up Transformers.

• HV Switchgear.

• HV Electrical Labor.

• HV Testing.

• Active Security.

• Interconnection works:

• HV line to off-site PoC.

• HV Grid Remote Disconnectors.

• HV SWG in Remote Substation.

• Testing, Commissioning & Hand Over.

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Streamlining Solar Projects. Increasing Efficiency

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• Minimize construction time with “building blocks” manageable with available resources

• Integrate your partners and suppliers in the opportunity evaluation and project design

• Create your own “flexible standards” to optimize procurement & capacity

• Minimize maintenance requirements & account for remoteness

• Select components that minimize the potential break points

• Develop a pipeline of projects to maximize your buying power

• Start the permitting for the next opportunities as they become available

• Select key equipment based on its capacity to support the particulars of the grid

Streamlining Solar Projects. Increasing Development

Efficiency

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Main Areas in the Feasibility Study of Solar PV Projects

• From developer’ perspective:– Legal environment.

– Market size and participation options.

– Permitting process & technical regulations.

– Payback terms and guaranties.

– Grid capacity – Systems size.

– Viable interconnection options.

– Site options and conditions.

– Logistics & equipment available.

– Labor and specialized contractors.

– High level EPC & OM programs and costs.

– Financial model.16

• From PLN perspective:

– Analysis of proposed grid area for connection.

– Grid capacity vs Systems size,

• Existing generation.

• Existing loads.

• Feeders capacity & load.

• Planned increases in generation & load.

• Flow & load analysis (on developer).

– Viable interconnection options (near site tower, new derivation, new switchgear in

substation).

– Technical Specifications for interconnection.

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Main Areas in the Feasibility Study of Solar PV Projects

For more information:

Info@ICED.or.id

www.iced.or.id

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