FINANCIAL SCHEME AND EXPERIENCE ON APPLICATION OF SOLAR HOME SYSTEMS IN INDONESIA Dr. Martin Djamin Ir. Ahmad Yusak Lubis MSc Drs. Agus Salim Dasuki, M.Eng The Agency for Assesment and Application of Technology Indonesia 1

Introduction • • • • • • •

The geography and topography of Indonesia has created many rural and remote areas About 6,224 villages can not be supplied by the State electricity company The government encourage the use alternative energy to solve rural electrification program The high cost and the un-sustainability of providing fuel in remote areas The housing pattern is sparse and scattered in rural and remote areas PV technology is used to solve the problem Some efforts have been done by BPPT to promote PV system (Solar home systems) in Indonesia through: demonstration, multiple demonstration and dissemination program 2

Potency and installed capacity of renewable energy Energy source

Potency

Solar Energy (PV)

4.8 kWh/m2/day

Mini/micro hydro

460 MW

Installed 5 MWp 3,854 MW

Geothermal

19,658 MW

64 MW

Biomass

49,807 MW

302 MW

3-6 m/sec

0.5 MW

Wind Energy

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Solar Home Systems in Indonesia • • • •

The SHS have been installed in Indonesia since 1989, a demonstration program in Sukatani village Under a Presidential aid program (multiple demonstration) 3445 SHS was installed In dissemination program about 37400 SHS have been applied in 8 provinces Private sector companies have installed a few thousand SHS in three provinces, the first target of this WB program was 200.000 SHS.

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Typical Solar Home System in Sukatani Village 5

Typical SHS under dissemination program 6

Concept of PV Rural Electrification Program National target is to electrified the whole village with electrification ratio 70% Some obstacles to reach the target are: •

The investment to set up an electrical distribution

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The high cost and difficulty of providing fuel in remote and rural areas

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Population is sparse and scattered in wide area

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Concept of PV Rural Electrification Program The electrification problems in remote and rural area can be solved by using: •

Centralised system

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Decentralised (individual systems)

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Hybrid PV-diesel system if the population not too sparse and scattered

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Typical Hybrid PV-Diesel system in Sulawesi 8 kWp PV system and 25 kW Diesel system 9

Segmentation of Consumers

Factor consider for segmentation are: •

s ratio, ratio between economical and investment cost to electrify the location

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Planning of PLN (National Electricity Company)

•

Area should not be reached by the grid at least for 5 years.

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Segmentation of Consumers Segmentation for consumers of SHS: •

Segment 1, for under developed area. GOI provides SHS, transportation to side and installation

•

Segment 2, for the area where the consumers are able to buy SHS by installment for 10 years, GOI contributes for training, transportation fee, installation and interest rate. The consumers have to pay a down payment for balance of system. The SHS is provided by GOI

•

Segment 3, the customers are able to pay the installed system by installment within 1-3 years. The SHS will be marketed by dealers (private companies). 11

Financing Scheme •

Scheme 1, this scheme is designed for consumers in the first segment and the scheme is as follows: ƒ All the cost will be paid by GOI ƒ The consumer begin to pay installment after 2 years ƒ Cooperative Village Unit will do the technical and financial management ƒ Down payment will be used for the first investment of the management

•

Scheme 2 is for village with s ratio 1-3, the scheme is as follows: ƒ Use lease and purchase contract for 10 years ƒ The consumers only pay the hardware ƒ The installation, tranportation and interest are paid by GOI ƒ KUD is responsible for technical and financial management ƒ The monthly payment is paid to BPPT 12

Financing Scheme •

Scheme 3 is directed for segment 3 and it is considered as semi commercial, the scheme is as follows: ƒ ƒ ƒ ƒ ƒ ƒ

The down payment is between 20% to 30% of total cost Use lease and purchase contract Payment period is between 1 to 4 years Marketing strategy depends on the dealer policy The interest rate follows the local commercial rate There is some contribution from GEF ( US $2/Wp)

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IMPLEMENTATION MECHANISM 1

GOI MOF/BAPPENAS

DONOR

2 Steering Committee 3

Supplier

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COORDINATION

4 18

Working Group

5

Centre Bank

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20 Working Group Dist. Working Group Sub.

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6

11 DistrictBank 8 17

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KUD 7

12 15

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IMPLEMENTATION

13 CUSTOMERS

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Obstacles in Implementation •

Financial ƒ The target areas usually have low income ƒ The dissemination of SHS need a high initial investment cost ƒ Therefore, the program is still managed and financed by GOI ƒ To speed up the program, BPPT proposed a financial sharing with local government (50:50)

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Obstacles in Implementation (continued)

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Regional Management: ƒ Quality of KUD management ƒ Communication ƒ Services (technical and repair)

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To solve the obstacle ƒ Strong regional management have to be created ƒ Create tools for managing the program

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Obstacles in Implementation (continued)

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PV Supporting Industry: ƒ Produce the spare parts in the location ƒ Assist the local manufacturers ƒ Prepare PV modules industry in Indonesia

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Obstacles in Implementation (hardwares) (continued)

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Batter voltage of Kadiat’s SHS (no vandalism on BCR)

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Battery voltage of Bachtiar’s SHS (after vandalism on BCR)

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Typical broken inverter and bulb 21

Negative creativity (paralleling battery) 22

Concluding Remarks ’ ’

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The use PV technology can improve economic activities in remote areas For dissemination program, it needs high initial investment and GOI has to create financial strategy Provide such a MIS to solve management problems Provide local manufacturer for the BOS

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