CER Issuance Progress of CDM Geothermal Project

Muhyidin, SKM at IICGE 2019
Penyerahan plakat dan sertifikat dari panitia IIGCE 2019
Bagikan

Muhyidin, SKM

Star Energy Geothermal Darajat II, Limited

Sentral Senayan II, 25th floor. Jl.Asia Afrika No.8, Jakarta 10270. Indonesia

Note: this paper has been presented and submitted at The 7th Indonesia International Geothermal Convention & Exhibition 2019

ABSTRACT

Indonesia is the biggest geothermal resources in the world with potential 29 GW. As of first quarter 2018, installed capacity of geothermal project in Indonesia is 1,924.5 MW. Currently Indonesia is the second highest of geothermal producer after United State of America, that previously Philippine is in that position. The government of Indonesia has commitment through Presidential Decree No.79/2014 on National Energy Policy to increase renewable energy and target to minimum 23% of primary energy mix (geothermal targeted to 7% by 2025).

Geothermal project in Indonesia has contributed 32.91% of total certified emission reduction (CER) with total emission reduction 11,311,630 ton CO2e. Indonesia is the biggest of CER issuance in the world in geothermal sector or equal to 82.77% of total CER issuance. Currently there are 13 clean development mechanism (CDM) projects registered & approved at United Nations Framework Convention on Climate Change (UNFCCC) secretariat and only 4 of them with CER issued status.

Since 29 May 2019, there is no more additional CER issuance from geothermal project in Indonesia. The last issuance is from Wayang Windu Phase 2 geothermal project with total CER issuance is 1,681,431 ton CO2e. Some challenges and opportunities discussed in this paper to share the best practice and knowledge among project participants.

INTRODUCTION

Asia and the Pacific countries has achieved rapid economic expansion in the recent years and has become a major source of greenhouse gas (GHG) emissions with more than half of the world’s population and high rates of economic growth, the region is especially vulnerable to the effects of climate change (ADB, 2015). Indonesia, as part of Asia, is the fourth most populous nation in the world, following China, India and the United States. The population grew from 119 million in 1971 to 219 million in 2005 and it is projected that Indonesia population will reach 300 million in 2030 (KLH, 2010). Despite continuous, the multi-decade economic growth, approximately 11% of Indonesia’s population is living below the poverty line. To lift people out of poverty, the Government of Indonesia is promoting economic development projected to average at least 5% per year in order to reduce the poverty rate to below 4% by 2025 as mandated by the Indonesia Constitution (KLHK, 2016).

In line with population growth and economic growth, it will increase the energy consumption. In Indonesia, the energy consumption still dominated by energy from fossil fuel. The discrepancy between high-energy consumption from fossil fuel and speed to find new resources, the fossil fuel energy will no longer available and Indonesia will depend on the import energy. This fossil fuel energy consumption automatically will increase subsidize from Government (EBTKE, 2015). The use of non-renewable energy especially from fossil fuel energy has increased the potential of global warming.

Diversification of new and renewable as the primary of national energy supply and fossil fuel energy as contributor paradigm should be set clearly. The government of Indonesia has commitment through Presidential Decree No.79/2014 on National Energy Policy to increase renewable energy. Renewable energy (include geothermal) currently only 7.7 % from the primary energy mix and targeted to minimum 23% or equal to 45 GW on 2025 (geothermal targeted to 7% by 2025).

Indonesia has renewable resources with potential more than 443 GW. Its potential such as hydro energy 75 GW, geothermal 29 GW, solar energy 207 GW, wind energy with 60.6 GW, and bioenergy with more than 102 GW. Indonesia is also known as a biggest geothermal resources in the world with total potential 29 GW (ESDM, 2018). As o first quarter 2018, Indonesia become the second largest world geothermal producer with total 1,924.5 MW installed capacity, shifting second position previously occupied by Phillipines. Additional installed capacity in 2018 came from Karaha Unit 1 (30 MW) and Sarulla Unit 3 (110MW). The following second semester from Sorik Marapi Modullar Unit 1 (20 MW on August 2018), Sorik Marapi Modullar Unit 2 (30 MW on December 2018), Lumut Balai Unit 1 (55 MW on December 2018) and Sokoria Unit 1 (5 MW on December 2018) (ESDM, 2018). Table 1 show installed capacity of geothermal plant in the world.

Table 1. Installed Capacity of World Geothermal Plant

NoCountryTotal MW
1United States3,591
2Indonesia1,925
3Philippines1,868
4Turkey1,155
5New Zealand980
6Mexico951
7Italy944
8Iceland755
9Kenya676
10Japan542
11Other889

Source: Thinkgeoenergy.com, 2018

CDM projects from geothermal sector in Indonesia has contributed in national GHG emission reduction. It has reduced 11,311,630 ton CO2e (32.91%) from total CER issuance from all industries in Indonesia. Table 2 showed CDM register status from geothermal projects in Indonesia. There are 13 CDM projects registered with total amount of reduction is 7,437,880 ton CO2e / year based on Project Design Document (PDD). Meanwhile, Lahendong Unit 5 & Unit 6 Geothermal Project with CDM project reference number 9519, initial registration request on 11 Jan 2013, has not been approved by UNFCCC and currently in pending publication status. Sibayak Geothermal Power Plant has not got CDM project reference number and currently in validation terminated status (UNFCCC, 2019). 

Table 2. CDM register status from geothermal projects in Indonesia

No.Registration project titleRegistered
1Darajat Unit 3 Geothermal Project11-Dec-06
2Lahendong II-20 MW Geothermal Project19-Dec-09
3Kamojang Geothermal16-Dec-10
4Wayang Windu Phase 2 Geothermal Power Project2-Dec-10
5Patuha Geothermal Project21-Dec-12
6Project Ulubelu Unit 3 – 4 PT. Pertamina Geothermal Energy15-May-12
7Project Lumut Balai Unit 1 – 2 PT. Pertamina Geothermal Energy22-May-12
8Gunung Rajabasa Geothermal Power Plant18-Sep-12
9Liki Pinangawan Muaralaboh Geothermal Power Plant31-Oct-12
10Rantau Dedap Geothermal Power Plant21-Nov-12
11Project Lumut Balai Unit 3 – 4 PT. Pertamina Geothermal Energy19-Sep-12
12Project Kamojang Unit 5 PT. Pertamina Geothermal Energy28-Nov-12
13Project Karaha Unit 1 PT. Pertamina Geothermal Energy27-Nov-12

Source: UNFCCC, 2019

Compared to other industry, CDM geothermal project in Indonesia contributed to 32,91% of total CER issuances from other industries and it is only 4 of 13 CDM project which has got CER issuance. It means those 9 CDM projects have not been run and verified by Designated Operational Entity (DOE) as per approved PDD. Currently there are 49 CDM projects in Indonesia with CER issuance status with total 34,373,731 ton CO2e (UNFCCC, 2019). Detail of CDM project with total CER issuance showed at Table 3 below.

Table 3. CDM Project in Indonesia with total CER issuance and number of project

NoCDM Project in IndonesiaTotal CER  (ton CO2e)Total Project
1Biomass Energy895,9627
2Cement8,863,0831
3Energy Efficiency Industry1,124,5451
4Energy Efficiency Supply Side17,1541
5Fossil Fuel Switch743,9331
6Fugitive3,110,7981
7Geothermal11,311,6304
8Hydro6,282,5167
9Landfill Gas128,9411
10Methane Avoidance1,696,81321
11Nitrate Oxide (N2O)125,9372
12Perfluorocarbon (PFCs) and Sulphur hexafluoride (SF6)71,3421
13Solar1,0771
 Total34.373.73149

Source: UNFCCC, 2019

Eventhough Indonesia is the biggest country on CER issuance achievement from geothermal sectors; there are some opportunity for improvement to get more CER issuance from this sector. Total CER issuance from geothermal project per country described in Table 4.

(Read: Opportunity and Challenges of CDM Projects)

Table 4. Total CER issuance of geothermal project per country

NoCountryTotal CER (ton CO2e)Total Project
1Nicaragua171,5411
2Papua New Guinea215,4241
3El Salvador1,413,6212
4Indonesia11,311,6304
5Guatemala208,9531
6Kenya345,6281
7China28,3301
 Total13,695,12711

Source: UNFCCC, 2019

METHOD

This research is descriptive qualitative method to describe and explain the CER issuance progress of CDM geothermal project in Indonesia by data collection method, review of literature, and interview & discussion. The rationale of this qualitative approach was to explore and describe the experiences and perspective of some CDM projects participants to contribute in national emission reduction.

Best practice sharing session among CDM participants already conducted in April 2018 at Sentral Senayan office. This session was coordinated by Pertamina Geothermal Energy (PGE) and attended by geothermal company under PGE joint operation contract. There was no competition in this CDM project, and some of companies share their best practice and CDM update. Star Energy group also has formal and non-formal sharing on CDM topic to discuss the progress.                     

This study will contribute to the literature on the sources of geothermal project as a lower emission energy sources, its initiative GHG emission reduction program implementation and best practices in contribution to national GHG emission reduction.

RESULT & DISCUSSION

Even though geothermal projects in Indonesia are the biggest CER contribution among other geothermal industries in the world (82.6% of CER contribution in all geothermal industries in the world is from Indonesia), room for improvements to have more CER from geothermal project is achievable. There are 13-registered CDM project from geothermal power plant in Indonesia, but only 4 of them already got CER issuance from UNFCCC secretariat. The highest CER issuance was from Darajat Unit 3 project with the last issuance was on 18 August 2017 with total 801,111 ton CO2e. The second largest CER issuance was from Wayang Windu Phase 2 Geothermal Power Project with the last issuance was on 29 May 2019 with total 1,681,431 ton CO2e. It means there are no additional CER issuance from geothermal project in Indonesia since 29 May 2019 (UNFCCC, 2019). The detail CER issuance from geothermal sector described in Table 5.

Table 5. CER issuance of CDM project from geothermal sector in Indonesia

CDM Project TitleTotal CERPercentage
Darajat Unit 36,260,60955%
Lahendong II-20 MW Geothermal Project216,3042%
Kamojang Geothermal92,6911%
Wayang Windu Phase 2 Geothermal Power Project4,742,02642%
Total11,311,630100%

Source: UNFCCC, 2019

There are some reasons why CDM project from geothermal sectors in Indonesia were not run smoothly mainly due to some projects have not been implemented, transition of company name change registration, end of crediting period and some registered project have not completed verification audit on their CDM monitoring report. There are 3 CDM project with status those projects have not been implemented which are: Gunung Rajabasa Geothermal Power Plant, Liki Pinangawan Muaralaboh Geothermal Power Plant and Rantau Dedap Geothermal Power Plant.

Kamojang Geothermal CDM project with installed capacity 60 MW, the status is that verification contract has been terminated since 12 August 2015.  Last day of the last monitoring period was on 28 February 2011 with total CER issuance was 92,691 ton CO2e with latest issuance on 18 November 2011.

There are 3 geothermal projects with status end of first crediting period which are: Lahendong II-20 MW Geothermal Project (18 December 2016), Kamojang Geothermal (15 December 2017 but terminated on 2015), and Wayang Windu Phase 2 Geothermal Power Project (1 December 2017). Based on interview with employee Wayang Windu that their project currently in progress of renewal second crediting period to UNFCCC secretariat.

Darajat Unit 3 Geothermal Project is the pioneer of CDM project in Indonesia. This project was registered to UNFCCC since 11 December 2006. Start of first crediting period was 14 June 2007 and end of first crediting period was 13 June 2014. Darajat Unit 3 also pioneer in renewal of crediting period. The PDD of second crediting period is approved on 5 September 2015. Its second crediting period is 14 June 2014 until 5 October 2019 with amount of reduction is 753,136 ton CO2e/year based on approved PDD.

Darajat Unit 3 initially operated by Chevron Geothermal Indonesia, Ltd (CGI) and as per 1 April 2017 this company was sold to Star Energy Geothermal Darajat II, Limited (SEGD). Chevron Limited and Chevron Products UK Limited (registered in the United Kingdom) registered as Project Participants (PP) of Darajat Unit 3. Chevron Products UK Limited has withdrawn from this project since 31 October 2018. The other issue is that  Chevron Limited also has been sold to other company. SEGD has difficulty in coordination and communication to this new company to ask them also to withdrawn as part of transition process in change name of PP.  

The change name of project participants consuming times. Since 2017, the process has not finished yet due to involving some stakeholders such as Delegation of National Authority (DNA) Indonesia and project participants at United Kingdom (UK). This process was not planned due to corporate action. The change name of project participants also not included during the purchase agreement between CGI and SEGD.

Due to registered name of project participants of Darajat Unit 3 still under CGI, some monitoring period of CDM activities can not be processed by SEGD as new owner/operator of Darajat Unit 3. It can become lesson learnt to other CDM project at geothermal sector to properly plan this administrative process if any corporate action in the future. Since Monitoring Report (MR) #13 until now, Darajat Unit 3 can not be verified by DOE to have CER issuance from UNFCCC. Summary of Darajat Unit 3 CER issuance can be seen in the Table 6 below.

Darajat Unit 3 has total CER achieved   4,697,905 ton CO2e  during 1st crediting period (14 June 2007 – 13 June 2014) and during 2nd crediting period (14 June 2014 – 5 October 2019) total CER achieved is 1,562,704  ton CO2e . Potential CER during period 1 Jul 2016  – 5 Oct 2019 is in progress while waiting the change name of PP from CGI to SEGD at UNFCCC secretariat.

Tabel 6. Summary of Darajat Unit 3 CER Issuance

CategoryCover PeriodCER (tCO2e)
Monitoring Report #1 (CER issued on 11 Jun 2009)14 Jun 2007 – 31 Aug 200790,804
Monitoring Report #2 (CER issued on 25 May 2011)1 Sep 2007 – 1 Nov 2008737,846
Monitoring Report #3 (CER issued on 25 May 2011)2 Nov 2008 – 31 Jul 2009501,310
Monitoring Report #4 (CER issued on 17 Apr 2012)1 Aug 2009 – 31 Oct 2010889,337
Monitoring Report #5 (CER issued on 11 Dec 2012)1 Nov 2010 – 31 Dec 2011838,969
Monitoring Report #6 (CER issued on 15 Apr 2013)1 Jan 2012 – 30 June 2012362,546
Monitoring Report #7 (CER issued on 16 Jun 2013)1 July 2012 – 31 Dec 2012345,420
Monitoring Report #8 (CER issued on 13 Jun 2014)1 Jan 2013 – 30 Jun 2013346,094
Monitoring Report #9 (CER issued on 15 Aug 2014)1 Jul 2013 – 31 Dec 2013263,040
Monitoring Report #10 (CER issued on 4 Dec 2015)1 Jan 2014 – 13 Jun 2014322,539
Monitoring Report #11 (CER issued on 5 Jan 2017)14 Jun 2014 – 30 Jun 2015761,593
Monitoring Report #12 (CER issued on 18 Aug 2017)1 Jul 2015 – 30 Jun 2016801,111
Total CER6,260,609

Source: UNFCCC, 2019

Lahendong II-20 MW Geothermal Project had initial registration request of PDD on 4 August 2009 and registered on 19 December 2009 with amount of reduction is 66,713 ton CO2e/year. PP of this CDM project in Indonesia is Perusahaan Listrik Negara (PLN) and PP in Netherlands are International Bank for Reconstruction and Development (IBRD) as Trustee of Netherlands CDM Facility (NCDMF) & Netherlands’ Ministry of Infrastructure and the Environment (IenM). Both PP from Netherland have withdrawn from this project (UNFCCC, 2019).

There are 3 MR that have been verified by DOE with total CER issuance are 216,304 ton CO2e. MR period 1 January 2013 – 18 December 2016 (1st crediting period) has not been verified by DOE. Summary of Lahendong II-20 MW Geothermal Project CER issuance can be seen in the Table 7.

Tabel 7. Summary of Lahendong II-20 MW Geothermal Project CER Issuance

CategoryCover PeriodCER (tCO2e)
Monitoring Report #1 (CER issued on 14 Mar 2014)19 Dec 2009 –  31 Dec 201084,960
Monitoring Report #2 (CER issued on 14 Mar 2014)1 Jan 2011 – 31 Dec 201163,817
Monitoring Report #3 (CER issued on 14 Mar 2014)1 Jan 2012 – 31 Dec 201267,527
Total CER216,304

Source: UNFCCC, 2019

Kamojang Geothermal CDM Project 3028 was registered since 16 December 2010 with amount of reduction 402,780 ton CO2e/year. PP of this CDM project in Indonesia are Perusahaan Listrik Negara (PLN) and PT Pertamina Geothermal Energy. PP in United Kingdom of Great Britain and Nothern Ireland are EcoSecurities International Ltd and EcoSecurities Group Plc.

Total CER issued from Kamojang Geothermal is 92,691 ton CO2e. Latest CER issuance was on 18 November 2011 and until now there is no additional CER issuance. The verification contract has been terminated and the last communication with UNFCCC secretariat was on August 2015. There are 2 monitoring reports with status is awaiting issuance request. Period 1 March – 31 July 2011 had emission reduction 182,908 ton CO2e and period 1 August 2011 – 30 September 2012 with emission reduction 408,199 ton CO2e. Both monitoring reports can not be processed due to the verification contract has been terminated. Table 8 show summary of Kamojang Geothermal Project CER issuance.

Tabel 8. Summary of Kamojang Geothermal Project CER Issuance
CategoryCover PeriodCER (tCO2e)
Monitoring Report #1 (CER issued on 18 Nov 2011)16 Dec 2010 – 28 Feb 201192,691

Source: UNFCCC, 2019

Wayang Windu Phase 2 Geothermal Power Project is the second highest CER issuance after Darajat Unit 3 with total 4,742,026 ton CO2e or 42% from total CER issuance in Indonesia from geothermal sector. Summary of  Wayang Windu Phase 2 CER issuance is shown in Table 9 below.  The latest CER issuance was on 29 May 2019 with total 1,681,431 ton CO2e (period 1 January 2015 – 1 December 2017).

Commercial Operation Date (COD) of Wayang Windu Phase 2 is on 4 Mar 2009 while their CDM registration was on 2 December 2010, so during that period the CER cannot be claimed into CDM project under UNFCCC. Carbon credits developed by carbon offset which are not yet certified called Voluntary Emission Reduction (VER). The opportunity to commercialize the real and verifiable reductions for project which have not been operational prior the successful registration at UNFCCC secretariat. In this case, emission reduction from the COD to the registered date was under VER. The VER has been verified by external parties so it can be commercialized as carbon trading (Muhyidin, 2018). Wayang Windu Phase 2 Geothermal Power Project currently in progress for 2nd crediting period renewal process. The end of 1st crediting period was on 1 December 2017. Table 9 show summary of Wayang Windu Phase 2 Geothermal Power Project CER Issuance.

  Tabel 9. Summary of Wayang Windu Phase 2 Geothermal Power Project CER Issuance
CategoryCover PeriodCER (tCO2e)
Monitoring Report #1 (CER issued on 2 Feb 2012)2 Dec 2010 – 22 May 2011379,773
Monitoring Report #2 (CER issued on 27 Apr 2012)23 May 2011 – 31 Oct 2011329,762
Monitoring Report #3 (CER issued on 28 Dec 2012)1 Nov 2011 – 31 May 2012444,255
Monitoring Report #4 (CER issued on 21 May 2013)1 Jun 2012 – 31 Dec 2012401,492
Monitoring Report #5 (CER issued on 15 May 2015)1 Jan 2013 – 31 Dec 20141,505,313
Monitoring Report #6 (CER issued on 29 May 2019)1 Jan 2015 – 1 Dec 20171,681,431
Total CER 4,742,026

Source: UNFCCC, 2019

Even thought, CDM project from geothermal sector have opportunity to get some fund from carbon trading and can contribute to national emission reduction, some challenges to run this project shall be handled properly. Some challenges of CDM geothermal project in Indonesia were: a) financial barriers, b) carbon market, c) international CDM regulation and policy, d) capacity building and knowledge, e) local regulation and policy, and f) unspecific domestic policy related to CDM (DNPI, 2014).

Current situation of registered CDM project from geothermal sectors are described to explore the challenges and figure out the best practice to solve it. There are 3 of registered CDM project from geothermal sectors which have not been implemented. They are Gunung Rajabasa Geothermal Power Plant, Liki Pinangawan Muaralaboh Geothermal Power Plant, and Rantau Dedap Geothermal Power Plant.

Gunung Rajabasa Geothermal Power Plant was operated by PT Supreme Energy Rajabasa (SERB). This CDM project was registered since 30 May 2012 same with Liki Pinangawan Muaralaboh Geothermal Power Plant. SERB has started the engineering design for civil constructed since August 2012. On April 2014, SERB just receive Borrow Use Permit of Protection Forest (IPPKH) permit from the Ministry of Forestry. This permit is a final requirement for the commencement of construction work in the area of the protection forest. In 2014, SERB focused on engineering design related to Jetty construction, piping systems, sea water facilities, pumping facilities, and facilities for the supply of electricity generators. The construction activity of Jetty began in early 2015 and was completed by the end of 2015 (SE, 2019).

Liki Pinangawan Muaralaboh Geothermal Power Plant was operated by PT Supreme Energy Muara Laboh (SEML). By the end of 2013, SEML has completed the exploration drilling program covering 6 wells. In 2014, construction of admin and accommodation building was completed on September 2014. By the end of 2015, SEML has completed the Engineering, Procurement, and Construction (EPC) tender process, and construction of geothermal power plants began in 2016 and estimated electricity production in 2019 (SE, 2019).

Rantau Dedap Geothermal Power Plant was operated by PT Supreme Energy Rantau Dedap (SERD). This CDM project has been registered since 24 July 2012. By the end of 2013, about 14 kilometers of road has already been opened and civil construction has been finished its original scope on July 2014. In November 2014, SERD reached financial closing to get USD 50 million facility agreement from the Asian Development Bank (ADB) supported by the Clean Technology Fund, for the exploration of Rantau Dedap geothermal project. The exploration drilling continued until early 2015 and completed 6 wells. In 2016, SERD completed the feasibility study report, and EPC tender (SE, 2019).

The current challenges of Darajat Unit 3 Geothermal Project are on the transition of project participant names due to divestation process. Formerly the project participants from the host party (The Government of Indonesia) are Chevron Geothermal Indonesia, ltd and PT Darajat Geothermal Indonesia. After divestation, the project participant become Star Energy Geothermal Darajat II, limited (SEGD). While project participants from other party (The Government of the United Kingdom of Great Britain & Northern Island) are Chevron Limited and Chevron Products.

Since April 2017, SEGD as new operator of Darajat Unit 3 Geothermal Project was in progress of changing the project participant name including coordinated with UNFCCC, Government of Indonesia and Chevron. The MR #13 and MR #14 currently can not be submitted to DOE for verification, due to the participant name has not been changed formally at UNFCCC secretariat.

Lahendong II-20 MW Geothermal Project and Wayang Windu Phase 2 Geothermal Power Project are currently in progress of renewal for second crediting period in its CDM project. The end of first crediting period of Lahendong II-20 MW Geothermal Project was on 18 December 2016 while Wayang Windu Phase 2 Geothermal Power Project ended its first crediting period on 1 December 2017.

Since August 2017, there was only 1 monitoring report from Wayang Windu Phase 2 Geothermal Power Project achieved CER from register CDM project from geothermal sector. The current CER issuance is on 29 May 2019 with total amount 1,681,431 ton CO2e. Currently Wayang Windu is still in progress renewal of second crediting period.

Past experience from Darajat Unit 3 Geothermal Project on its journey of second crediting period approval, it takes about 2 years since formal notification to UNFCCC secretariat on 10 December 2013 until renewal date of PDD approval from UNFCCC secretariat on 5 September 2015. It took time especially on preparing contract for consultant service, interview validator with CDM members, Ministry of Energy and Mineral Resources and National Council for Climate Change (DNPI) until supporting document and submit renewal of PDD report to DOE.

Darajat Unit 3 Geothermal Project is in progress for renewal of third crediting period until approval by UNFCCC secretariat with ultimate deadline by October 2020. Before renewal process, the transition process of project participant name from CGI to SEGD shall be done so the renewal process can be further processed to UNFCCC secretariat.

Patuha Geothermal Project was operated by PT Geo Dipa Energi. This project was registered since 12 December 2012. The estimated CER from this CDM project based on approved PDD was 263,851 ton CO2e. Currently there is no CER issuance yet from this project that has been verified by DOE.

The rest of registered CDM projects under PT Pertamina Geothermal Energy (Project Ulubelu Unit 3 – 4, Project Lumut Balai Unit 1 – 2, Project Lumut Balai Unit 3 – 4, Project Kamojang Unit 5, and Project Karaha Unit 1) have not got CER issued due to those project have not been verified by DOE. These projects have been upgraded to Gold Standard CDM project since February 2013. The Gold Standard is a standard for creating high quality emission reduction projects in the CDM, Joint Implementation (JI) and Voluntary Carbon Market. Its objective is to add branding, a label to existing and new carbon credits generated by projects which can then be brought and traded by countries that have a binding legal commitment according to the Kyoto Protocol.

Sarulla Operation, one of the geothermal project that already reached full commercial operation of its 3×110 MW, have not been registered yet as CDM project at UNFCCC secretariat. The commercial operation of the first unit was operated on 18 March 2017, the unit 2 in November 2017 and unit 3 in May 2018. The potential of CER from this geothermal project will be more contribute in national emission reduction.

CONCLUSION

CDM project from geothermal sectors in Indonesia has significant contribution to national emission reduction. Current CER from all geothermal sectors was 11,311,630 ton CO2e or 32.91% of all total CER from all sector include biomass, cement, fossil fuel switch, hydro, methane avoidance, etc.

Only 30.77% (4 of 13 registered CDM projects achieved CER issuances from UNFCCC secretariat. It means still have opportunity from all registered CDM project from geothermal sector to get more CER to contribute in national emission reduction program.

Regular best practice sharing and discussion among CDM project participants need to be conducted to update and share best practice among participants so that CDM project implementation can be run smoothly and higher CER can be achieved.

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UNFCCC (2019), “Project 3028: Kamojang Geothermal”.

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