Investments in Climate Change project

1. Investments in Climate Change project Wim MaaskantBGP Engineers – The Netherlandsinfo@bgpengineers.com

2. Potential investments: Indonesia has high potential for developing energy production from renewable energy sources: sun, water, wind, biomass, geothermal energy and energy efficiency. Geothermal: Indonesia has a history of using geothermal energy for heating purposes. The potential for geothermal energy production is estimated at several thousands GWh per year. Currently the potential is hardly explored. Small hydro: There are more than thousands of potential small hydro sites with small hydro plants from 45 kW up to 5000 kW. Therefore the overall potential is very big.

3. Potential investments: Wind: There are no wind turbines for energy production installed in Indonesia. However, the potential for energy production using wind power is estimated to be very favorable, especially in the central part of the country. Biomass: The technical potential of biomass (energy resource from forests, agricultural residues and municipal waste) is very high. Solar: As one of the sunniest countries in the region, Indonesia has an annual solar energy value of thousands GWh. Energy efficiency: large potential.

4. CDM, JI-projects, by sector Landfill Gas Capture 10% Other 7% N2O 4% Hydro 12% HFC 25% Wind 7% Forestry (LULUCF) 4% Biomass 7% Energy Efficiency 2% Animal Waste 18%

5. Project types (general): District heating, fuel shift to biomass and waste management sectors are able to generate substantial volumes of Carbon Credits in Indonesia

6. Project types in Private sector: Power plant upgrade (fuel shift, energy efficiency) Combined Heat & Power (CHP, energy efficiency) Waste management (Methane, energy efficiency) Gas transport (Methane) Transportation: bio-ethanol & biodiesel (Fuel shift)

7. Industrial energy efficiency (examples): Combined Heat & Power (CHP) Refurbishment of production units resulting in reduced specific energy consumption (GJ/tonne product). Sectors: paper, steel, cement, ceramics etc. (EU-ETS) Fuel shift: use of biomass, biogas etc. Renewable energy (wind, solar, hydro) Boiler optimization Reduction of N2O-emission (fertilizer industry) Reduction og HCF emssions Waste gas recovery; improved flaring; pipeline leakages

8. Waste management (examples): Waste incenerators (baseline!) Capture of methane from landfills, production of electricty Recovery of methane from sludge digestors, production of electricity Waste water treatment (as alternative to direct discharge) Sludge digestion (with recovery of methane) Recovery of waste wood or other organic wastes (paper waste, waste gases etc.) Abatement of leakage from pipelines; Agricultural enterprises: methane capture from digestion of waste (pig, cow, chicken)

9. Transportation (examples): Energy efficiency in public transport (metro, buses) Bio-ethanol production Bio-oil and biodiesel production Other (examples): Forestry (many obstacles) Land use (many obstacles)

10. Project types in Public sector: Power plant upgrade (fuel shift) Hydro power (renewables) District heating networks (energy efficiency) Waste water treatment plants (Methane) Combined Heat & Power (CHP, energy efficiency) Waste management (Methane, energy efficiency)

11. Project types in Public sector (examples): Power plant upgrade (fuel shift) Hydro power (renewables) District heating networks (improvement of distribution stations, network refurbishment) Waste water treatment plants (Methane, sludge digestion, energy efficiency improvement) Energy efficient buidings (programmatic CDM Waste management (Methane, energy efficiency) Use of wood for energy generation (programmatic) Coal mine gas recovery