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Sustainable Energy Options and Specific Projects /Case Studies

relevant to Indonesia in making Sustainable Energy Affordable

and Accessible

Consultative Workshop on ‘Indonesia National Strategy to Increase Affordability of Sustainable Energy Options

and South - South Cooperation’

12-13 May 2014 Jakarta, Indonesia

(2)

Sustainable Energy Technology Options Suitable

for Indonesia

1.

Geothermal energy for heat and electricity application.

2.

Bio-fuel based energy for transport, electricity and Industry

applications.

3.

Biomass energy for heating and electricity applications.

4.

Solar PV and solar thermal energy for electricity and heating

applications.

5.

Small and Micro-hydro power technologies for electricity

generation.

6.

Wind energy for electricity generation.

7.

Municipal solid waste / animal waste resource for electricity /

(3)

Case Studies

Solar thermal applications in industry and hospitality

sector.

Solar water heating systems for domestic heating.

Municipal solid waste-to-energy projects.

(4)

Concentrated Solar Power for Industrial Heating

 Industrial sector is one of the largest energy consuming sectors.

 Industrial energy demand is met by electricity, coal, oil, gas, and biomass.

 Major industrial end energy consumption is thermal energy (process heat).

Concentrated Solar Power (CSP) technologies can provide the required heat for these processes.

 Heat is provided at the user point through a working fluid which is generally

pressurized hot water, steam, hot air or hot oil.

 CSP systems have been used for cooling, food production, steam cooking, baking of

bread, hot water / steam, and evaporation.

 Parabolic dish with moving focus is one such CSP system, and in India ‘Arun Dish’ has

(5)

Case Study: ‘ARUN’ in Dairy Industry

 The dairy industry utilizes a large amount of energy for milk processing, pasteurization,

sterilization, cleaning-in-place (CIP), etc., which is in the form of medium temperature thermal energy, which can be provided through the use of solar concentrators.

 Mahanand Dairy (situated in Maharashtra, India) opted to satisfy its thermal energy needs through solar energy in its pasteurization process, and installed a solar thermal system in 2006.

 The system was developed by Mumbai based Clique Solar. The completely automatic two-axis tracking system ensures maximum efficiency. ARUN160 has an aperture area of 169 sq. m.

 On a clear shiny day, a single ARUN dish delivers sufficient energy for pasteurization of ~30,000 liters of milk and CIP of milk storage tanks.

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Case Study I: ‘ARUN’ in Dairy Industry

Operation

In the morning, the circulating pump extracts water from the storage

tank and circulates it through the receiver coil.

The water is then heated and sent back to the storage tank. The water

is stored at a pressure of 18 bar, at 180°C.

The hot water then flows through the heat exchanger to transfer the

heat to the milk for pasteurization.

The milk gets pasteurized using the hot water generated by the

concentrated solar thermal system

This system continues to save about 100 to 115 litres of furnace oil on

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ARUN

Cost Economics

Item Cost (in USD) (1 USD = INR 60)

No subsidy With subsidy

ARUN160 Price 59,666 59,666

Balance of plant, civil, transport 15,833 15,833

Total system cost 75,499 75,499

Subsidy 16,900 *

User contribution 75,499 58,599

Furnace oil saved per annum (in litres)

17,000 17,000

Rate per litre of FO (USD / litre) 0.8 0.8

Total fuel savings per annum(USD) 13,600 13,600

Payback (years) 5.55 4.3

(10)

Case Study: ‘ARUN’ in Hospitality Industry

 ITC two ARUN solar boilers and concentrated solar thermal dishes for fulfilling the thermal – Maurya, New Delhi, collaborated with Clique Solar in successfully commissioning

energy requirements. This is the world’s first large-scale solar concentrator system catering to the thermal needs of the hospitality industry.

 Two ARUN solar boilers with a combined aperture area of 338 sq.m generate steam, and is used to meet the hotel’s laundry, cooking and other heating requirements.

 By installing the solar system, ITC is able to save an equivalent of almost 40,000-

(11)
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Solar Water Heating System for Domestic Use

The Ministry of New and Renewable Energy (MNRE), Government of India, had

proposed the following provisions to be included in the building bye laws of the

local authorities for mandatory use of solar water heating system.

 “No new building in the following categories in which there is a system or installation for

supplying hot water shall be built, unless the system or the installation is also having an auxiliary solar assisted water heating system:

 Hospitals and nursing homes  Hotels, lodges and guest houses

 Hostels of schools, colleges, training centers

 Barracks of armed forces, paramilitary forces and police department  Individual residential buildings having more than 150 sq m plinth area

 Functional buildings of railway stations and airports like waiting rooms, retiring rooms, rest rooms, inspection bungalows and catering units

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Solar Water Heating System for Domestic Use

(contd)

 Clearance of plan for the construction of new buildings of the aforesaid categories shall

only be given if they have a provision in the building design itself for an insulated pipeline from the rooftop in the building to various distribution points.

 The building should also have open space on the rooftop. The load bearing capacity of

the roof should be at least 50 kg per sq m. All new buildings of above said categories must complete installation of solar water heating systems before obtaining a license to commence their business.

 The capacity of solar water heating systems to be installed in the buildings of different

categories shall be decided in consultation with the local bodies. The recommended

minimum capacity shall not be less than 25 liters per day for each bathroom and kitchen subject to the condition that maximum of 50% of the total roof area is provided with the system.

 Installation of Solar Assisted Water Heating Systems shall conform to BIS (Bureau of

Indian Standards) specification IS 12933.

 Wherever hot water requirement is continuous, auxiliary heating arrangement either

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Ways to encourage SWHS

Action required Implementing Agencies/Govt Departments

Issue of orders to local government/municipalities for mandatory use of SWHS.

Ministry of Urban Development/ PWD

Amendment in building bye-laws to ensure mandatory use of SWHS.

Local government /Municipalities

Rebate in property tax of individual house owners to encourage use of SWHS.

Local government / Municipalities

Rebate in electricity bill of individual house owners to encourage use of SWHS.

Electricity utility

Target Achievements during the

Year (up to January)

Cumulative Achievements

SWHS Collector Area (million m2)

FY 2012-13 FY 2013-14 FY 2012-13 (% of Target)

FY 2013-14 (% of Target)

(as on 31.01.13)

(as on 31.01.14)

0.60 0.50 1.41

(235.00 %)

0.51

(102.00 %)

(15)

MSW to Power

Chinese Case study

In 2002, the Wenzhou city government (Zhejiang province), decided to form a

partnership with a local private contractor, Wei Ming Environmental Protection

Engineering, to build, own and operate a new MSW-to-energy incinerator plant

under a build, own and transfer (BOT) scheme.

The company invested a total of CNY90 million ($10.863 million at an

exchange rate of 0.1207 $/CNY for 2002) in phases to build the plant and

operate, manage, and maintain it for a period of 25 years (excluding a 2-year

construction period) under the BOT agreement.

At the end of the period, the plant will revert to government ownership without

any additional compensation to the company. The plant has been operational

since 2003.

The incinerator plant has a design capacity of 320 tonnes of MSW per day

(16)

MSW to Power

Chinese Case study (contd.)

The plant receives a service fee from the Wenzhou city

government for the disposal of MSW at a rate of CNY 73.8 per

tonne ($10.13 per ton at an average exchange rate of 0.1372

$/CNY for the period 2003 to 2013).

The BOT project is expected to break even after 12 years.

The project has received support in the form of network

operators purchasing electricity generated by the project,

exemption from corporate income tax for the first 5 years of

operation, and eligibility for immediate refund of value-added

tax.

In Zhejiang province alone, more than 30 such plants exist in

(17)

MSW to Power

Chinese Case study

City government of Wenzhou Wei Ming Environmental

Protection Engineering BOT contract

25 years

Wenzhou Dong Zhuang refuse incinerator power generation

plant

Electricity market Investment of USD 10.863 million

(18)

MSW to Power

The Indian Experience

 Local municipal administration (Corporation / Municipality) is responsible for the collection,

transportation and disposal of municipal solid waste (MSW) generated in the city as per the

procedure laid down under MSW (Management and Handling) Rules 2000 framed by the Ministry of Environment and Forests (MoEF).

 Administration with an intention to develop project facility for treatment and disposal of the waste,

invites proposals from the private sector after floating the Request for Proposal (RFP).

 The selection has been done competitively on the basis of the highest tipping fee quoted by private

developers to be received from the administration for disposal of waste.

 In general, developers get the required land from the administration at negligible cost.  Developers have the freedom of selecting the technology for waste processing, and can

commercially use the by-products derived from the delivered waste.

 Administration has to ensure a minimum MSW supply to the developers, and developers can face

penalty if they cannot handle waste in the required quantum.

 Electricity is generated from such plants after processing the waste, and using different technologies

(19)

Developers can sell the power to electricity utilities, interested

third parties, traders, or power exchanges.

The electricity sale rates w.r.t. utilities have been determined by

the Electricity Regulatory Commission as project specific tariff

after scrutinizing the detailed project cost.

These projects can also get benefits under Renewable Energy

Certificates (REC) and can earn revenue through RECs.

Other benefits related to RE projects such as income tax holiday,

and accelerated depreciation are also applicable.

(20)

15% of the energy generated is used as auxiliary consumption

The remaining is sold to the utility

Rochem designed the project on pyrolysis-gasification technology

The project capacity is 8.97 MW (2.99 MW X 3)

PMC guaranteed 700 TPD MSW supply and gave land for the project

Rochem quoted INR 300 / tonne as tipping fee to be received from PMC

Pune Municipal Corporation (PMC) floated RFP for waste processing

Rochem Separation Systems won the bid on the basis of tipping fee

(21)

PRECONDITIONING

(22)

Community-based Small Wind Turbines:

Case Study from Peru

 The inhabitants of Alumbre in Northern Peru are mainly engaged in subsistence

agriculture and livestock rearing.

 The electrification project through small wind is designed to cover basic household

needs and community services (school and health centres).

 In the first phase, 21 wind turbines of 100 W were installed in 21 homes and a wind

turbine of 500 W was installed in the local school. In the second phase, 14 more family systems and a 500 W wind turbine were installed to electrify homes and the health centre respectively.

 The region is characterized by low to moderate winds, and the wind turbines installed

are specifically designed to operate at low wind speeds.

 A local micro enterprise was formed to operate, maintain and administer all the

systems. The micro-enterprise-based management model promoted active

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The micro enterprise is legally registered as a sole proprietorship, and has a

monthly tariff structure

.

The micro enterprise is in charge of collecting the

monthly tariff paid by the users, and the tariff serves to cover the costs of

maintenance and replacement of the equipment throughout the lifespan of the

project. The tariff also serves to provide a stipend to the

operator-administrator.

The wind turbine installed in each home covers the domestic use of electricity

for 5 hours/day. The households use the turbines for lighting, weaving or

knitting in the evenings, operating the radio and charging cellphones.

The turbines in the school power four computers and a DVD player for

educational videos used by students from Alumbre and neighbouring

communities.

(24)

The health centre, which attends to people in four communities,

now has electricity for lighting purposes and for running a

vaccine refrigerator.

Community training sessions for authorities and local

technicians strengthen operation and maintenance.

Use of wind turbines has reduced the expenditure on other

energy sources such as kerosene and candles.

Families have been using energy directly or indirectly in the

implementation of small business such as operating a radio

station, producing sweaters, and cheese making.

(25)

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