Indonesia - Prospects for biomass power generation with emphasis on palm oil, sugar, rubberwood and plywood residues
Hoff, Karla | Stiglitz, Joseph E.
Indonesia is richly endowed with large primary energy resources that can meet both domestic demand as well as export requirements in the form of oil, liquified natural gas, and coal. Indonesia's domestic energy consumption has grown considerably with 5.5 percent per year during 1984-89, and has reached about 292 million barrels of oil equivalent in 1989. With the expected rapid growth of the economy, domestic energy consumption wil grow even faster. The Government of Indonesia (GOI) has adopted a policy to conserve its liquid petroleum reserves and thereby prolong the availability of an exportable surplus, and diversification of domestic energy consumption away from petroleum products towards alternative fuels that are non-exportable (gas and coal) or non tradeable (hydro, geo-thermal and biomass). The objective is to stimulate domestic economic activity in a cost effective manner and to deliver affordable energy to consumers, in particular households, to improve their economic welfare. This study examines the potential role of biomass based electricity generation and cogeneration for the development of the power sector in Indonesia. In light of GOI macro objectives, the four main activities conducted for this study are summarized as follows: 1) identify and define specific and sustainable surplus biomass resources, with emphasis on the Outer Islands, e.g. Sumatera, Kalimantan; 2) identify specific current and projected energy demands in these areas which could technically and economically be met by substitution of biomass resources; 3) assess at the pre-feasibility level the technical and financial-economic viability of appropriate conversion technologies; and 4) outline the policy and institutional constraints confronting the development of any prospective project implementation.
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