Renewable Energy Project Development

1. Renewable Energy Project Development The last meeting TWG IV Grand Candi the Gallery Hotel Semarang, 09 July 2011 by CASINDO Team West Nusa Tenggara

2. Outline of Presentation • Executive Summary • Market analysis • Product description • Regulatory setting • Project management • Technical feasibility • Financial analysis • Risk analysis and contingency planning

3. Executive Summary • What are you planning to implement? The proposed renewable energy project to be developed under the Casindo TWG IV in WNT is household biogas. • Where are you planning to implement? JerukManis is the name of the target location chosen for the implementation of the renewable energy project in the program Casindo.

4. Executive Summary (Cont’) • Who will conduct the implementation? To implement the project, the Casindo team in WNT has partnered with Hivos and its BIRU program. The biogas digester contruction will be conducted by BIRU Lombok, in collaboration with construction partner organization, namely “Yayasan Mandiri Membangun Masyarakat Sejahtera (YM3S)” and managed by Casindo project Faculty of Engineering University of Mataram.

5. Executive Summary (Cont’) • How will the project be implemented? With what funds or what funds does it need? Project of biogas technology will build in a self funding from people of meet criteria established by the BIRU program. Then the number of households that are eligible to be selected as the target of the program were 63 families; Nowday, BIRU Lombok not yet getting financial institution to provide the credit in biogas digester construction, so that funds originated from vilagers and subsidy from Hivos.

6. Executive Summary (Cont’) • Why is it desirable for the project to be implemented? What benefits will it bring? If the project to be implemented, very desirable many benefits for poor people in location target and its project suistain for the long time; BIRU program will have broad effects of health conditions and job creation as well as the local economy.

7. Section 2: Market analysis

8. Map of selectedlocation Sikur District, East Lombok, WNT. 08o 34'21.50''N 116o25'22.17'' E

9. Natural resources of selected location

10. Demographic profile Number of population and household : Source: Data villages Jeruk Manis in October 2010

11. Demographic profile Size of household & Age structure: Source: Data villages Jeruk Manis in October 2010 Source: Data villages Jeruk Manis in October 2010

12. Educational profile Number of educational facilities : Number of villagers with completed schooling : Source: Data villages Jeruk Manis in October 2010

13. Educational profile Number of students currently enrolled in schools : Source: Data villages Jeruk Manis in October 2010

14. Economic profile Employment sectors and number of employees : Source: Data villages Jeruk Manis in October 2010

15. Economic profile The unemployment rate in this region has reached 20-25%. Households that serve as the target location for Casindo activities are classified as poor. Average household income is IDR 5.291.222, 00 per year or IDR. 440.935,00 per month. There are 189 households receive government subsidies (BLT) is IDR 200.000,00/families per month.

16. Economic profile Average household expenditures : (Source: Need assesment questionnaire carry out for this project)

17. Energy profile Energy use pattern emerged : • The main energy source for cooking is firewood, mainly collected free of charge in the surrounding forest area; • The main energy source for lighting are kerosene and electricity; • The main energy source for vehicles is gasoline.

18. Energy profile Energy expenditures per fuel type : * Energy prices are fixed per month, it is not per 1 kWh

19. Current energy provision • Energy supply and its historical growth rate :

20. Estimate of total demand for the proposed technology • The technology proposed to be developed in Casindo TWG IV is household biogas. • The total demand for energy comes from 761 households. • There are 63 families which have 3 or more cows and 137 families have 1 – 2 cows. • So the percentage of people who use firewood and kerosene remains large at 73,72%.

21. Estimate of total demand for the proposed technology

22. Section 3: Product description

23. Introduction of the product • The product proposed under Casindo TWG IV in WNT is household biogas; • Household biogas digesters convert animal dung and various other organic materials into combustible methane gas know as biogas; • The proposed technology would be implemented in partnership with Hivos (BIRU program)

24. Introduction of the product (Cont’) • The BIRU program promotes the use of biogas to fulfill the daily needs of fuel for cooking. • Meeting the family cooking fuel needs with biogas is very satisfying, it can replace the role of firewood or kerosene. • Reactors owners are no longer spending time looking for firewood in the forest and not spend money to buy kerosene. • In July 2010, the BIRU program started running in WNT. By July 2011, the program has been able to build about 100 biogas reactors on Lombok Island.

25. Technology description The reactor components :

26. Technology description The installation of a biogas reactors :

27. Technology description The technical design of a typical biogas reactor :

28. Technology description • Model, size and lifetime : The model used is based on the model of cement biogas digester used in Nepal (SNI Indonesia). The household size reactors can be of 4, 6, 8, 10, 12 m3. With proper care, biogas reactors are expected to stay safe for 20 - 30 years

29. Technology description Estimated cost of the biogas reactor :

30. Construction process The construction sequence of a biogas digester :

31. Construction process The construction sequence of a biogas digester :

32. Construction process The construction sequence of a biogas digester :

33. Availability of skilled builders for the construction of the reactor is a key condition of the BIRU program. In every area of work, BIRU carries out training for local builders by a professional trainer. The goal is to have in each work area professional local builders who have ID cards. In Lombok, BIRU has 31professional builders and 9 supervisors.

34. Economic benefits The biogas digesters installed through the BIRU program will have broad effects on health conditions and job creation as well as the local economy, including: • Strengthen the integration of agriculture and cattle breeding for the improvement of agricultural resources • Creating jobs in the biogas construction sector • Strengthen food security by improving agricultural output through the use of biogas slurry • Reducing deforestation • Controlling greenhouse gas emissions from livestock and organic waste disposal • Recycling of nutrients and restore soil fertility • Promoting environmental awareness and link it to economic advantage

35. Social benefits • Reducing the burden of women to collect firewood; • Improving sanitation and reducing diseases associated with poor sanitation; • Reducing air pollution from smoke generated by burning firewood for cooking; • Improving sanitation and hygiene education.

36. Section 4: Regulatory setting

37. Relevant policies :

38. Relevant policies (Cont’) :

39. Relevant policies (Cont’) :

40. Section 5: Project management

41. Description of the project champion • Mr. Umar is Coordinator of the BIRU program in Lombok, WNT; • The BIRU program are managed and implemented by Hivos and SNV Netherlands Development Organisation; • The BIRU program is run by a small team of professionals consisting of a Coordinator, Quality Auditor, Promoter, as well as administration and finance staff.

42. His experience : • Mr. Umar has experience working in Care Indonesia from 1992 until 2010. His experience in the field of renewable energy is to build the biogas in East Nusa Tenggara province; • Since July 2010 up to now join with Hivos in BIRU Lombok.

43. His motivation in BIRU program : • BIRU program Lombok targets 256 unit digester in 2011. • Additional of a new CPO and training professional builder and supervisor. • Extending the work area in North Lombok regency, also new district in previous regency.

44. Description of the project team • BIRU representatives in Lombok consist of a Coordinator, Quality Auditor, Promoter as well as administration and finance staff; • Construction partnerorganisation(CPO), in East Lombok, Hivos cooperates with an NGO named YM3S (has 3 supervisor and 10 professional builders); • Casindo team from University of Mataram provided support to the program by conducting pre-preparation and socialization in Jeruk Manis village.

45. Construction Partner Organisation (YM3S) BIRU (Biogas Rumah) CASINDO Project ABDUL NATSIR PIC TWG IV Mr. UMAR Coordinator BIRU Lombok TURMUZI Supervisor M. ALI IKHSAN Promotion Staff USER Organization of the project

46. Section 6: Technical feasibility

47. Technical requirements of the technology Cattle dung 20-30 kg per day (at least 3 cows) for a biogas reactor of 4 m3 and 6 m3 and the availability of adequate water for manure and water ratio (1: 1) Input requirements Space requirements

48. Technical requirements of the technology • Maximum allowed distance is 200 meters between biogas reactor with a kitchen. • Closest distance ever is 12 meters, but in the implementation of the reactor can be done under the kitchen. • Biogas reactor can work at ambient temperature, best at a temperature of 35oC. Other requirements

49. Availability of input requirements in the selected location • There are 63 households which have 3 or more cows. • Water availability in the selected location is also sufficient. • The households have sufficient space to install the digesters

50. Output • Under normal conditions, a BIRU biogas reactor will produce gas that has a gas pressure of 50 - 80 cm of water  (measure unit of biogas pressure). • 2 days after full charging has begun to burn, and cook with blue flame and faster than kerosene stove.