UNDIP TEAM SEMARANG Meeting, 9 – 13 July 2011

UNDIP TEAMSEMARANG Meeting, 9 – 13 July 2011

TWG IV:RE Project Development

Development of BIOGAS at Seruni Village, Musuk Sub District, Boyolali Regency

Activities during March – July 2011 and Next Actvities

After installed demo unit, now 2 digester was constructed and 7 household already fill the HIVOS administration form and was given to LPTP.

PUSDILAT KEBT took the film at KUD Mojosongo and Sruni Villages for the television program “ development Biogas program for MEMR“

Training Biogas – Cooperate with HIVOS, pusdiklat KEBT (ETCEREE) and UNDIP on April at Boyolali ( 3 days ). The participants from the cow farms, local government and koperasi(KUD)

on 18 June 2001, Met with KUD Musuk ( almost 50 % cow farms are member of Koperasi Unit Desa Musuk ) as a MFI , to speed up the program installation biogas digester and to discuss about the possibility Koperasi Susu Musuk can do install biogas digester (CPO)

Arrange the meeting with HIVOS, KUD Musuk, KUD Mojosongo (MFI) , LPTP (CPO), Regional office , and UNDIP to implement the Project of the Biogas at Sruni ( Schedule 26 July 2011).

Prepare Draft Complete report on end of July and Final report on end of August 2011

Outline Presentation

Background of the Selection Location

1. Executive Summary2. Market analysis3. Product description4. Regulatory setting5. Project management6. Technical feasibility7. Financial analysis8. Risk analysis and contingency

planning

Background of the Selection Location

SITE SURVEY

After resulting potential locations, in May 2010 a site survey was conducted together with Dinas.

First location visited is Musuk Subdistrict, Boyolali District

The subdistrict was selected from potential locations because:a. Boyolali is a district which produces a great amount of

milk from dairy cows (greatest amount in Central Java);b. Musuk subdistrict does not receive any funds from Hivos

project, as well as from other institutions, while other

subdistricts receive.

MAP of BOYOLALI district

Subdistrict Musuk and Sruni Village Offices

BIOGAS POTENTIAL IN BOYOLALI

Number of cows (source: Dinas ESDM)

The number of cow at Sruni is 1248, so this equal to 5 % from the total of Musuk distric

1. Executive Summary

What are you planning to implement?The proposed renewable energy project to be developed under the Casindo TWG IV in Central Java is household biogas.

Where are you planning to implement?Seruni Vilage is the name of the target location chosen for the implementation of the renewable energy project in the program Casindo.

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 80 families; instead with 194 cow farmerNowday, BIRU Central Java and UNDIP and LPTP will cooperate with MFI (KUD Musuk and Bank BRI) getting financial institution to provide the credit in biogas digester construction, so that funds originated from vilagers and subsidy from Hivos.

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.

2. Market analysis1. Geographic description of selected location:1. Geographic description of selected location:

- Geographic description of selected location:

Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Map of Boyolali Regency and Musuk Distric (20 vilages)

Market analysis (cont)1. Geographic description of selected location:1. Geographic description of selected location:

- Geographic description of selected location:


Map of Sruni Village


- Demographic profile of selected location


Population of Sruni Village

Village/Sub VillagePopulation

HouseholdMale Female Total

RW I 239 245 484 131RW II 301 302 603 174RW III 388 377 765 229RW IV 205 213 418 114RW V 306 337 643 183TOTAL 1439 1474 2913 831

Household Sruni Village

Size of household Percent (%)

1. – 3 person 484 – 6 person 51

> 7 person 1

Source from : Seruni Village office





Age Structure of Sruni Village

Education Background of Household Sruni Village

Age structure (year) Percent (%)

Children & adolescents : < 17 tahun 35

Adult : 18 s/d 50 tahun 55

Elderly : > 50 tahun 10

Education Level Total of Household

SD ( Basic Scholl) 355SMP (Yunior Scholl) 225SMA ( High Scholl) 218< D3 (Academic)

33S1 ( University)S2 ( Master )






Education Facilities and number of student Sruni Village

NoEducation Level Total Education

Facilities

Number of student

1 Kindgarden 1 40

2 SD ( Basic School) 2 220

3 SMP ( Yunior School) 1 400

4 SMA (high School) - -



- Economic profile


type of work Sruni Village

No Type of Work Percentage (%)

1 Un irrigated Farmland worker 30 %

2 Government / Teacher 4 %

3 Cow Breeder 48 %

4 Entreprenuer 2 %

5 Industrial Labor 6 %

6 Buliding worker 5 %

7 Merchant 5 %



- Economic profile


Chart of The Percentage of Income Clas Sruni Village

From survey need assesment


- Economic profile


Average Expenses of sruni Village

No Type of Expenses Total Amount ( IDR)/month

1 Food Rp. 600.000,-

2 Energy for cooking Rp. 66.000,-

3 Energy for Electricity & Gasoline Rp. 100.000,-

4 School Rp. 100.000,-

5 Health Rp. 50.000,-

TOTAL Expenses/Month Rp. 916.000,-



- Energy profile (current household energy situation):


From the energy need survey, the following energy use patern emerged : 1.The type of energy uses for cooking are wirewood and LPG 2. Energy for ligting is electricity3. Energy for vechicle is gasoline

Energy expenditure per fuel type at Sruni Village

Energy service Fuel type Average monthly consumption

Average cost(in IDR, at the time of

writing)Total monthly cost

Cooking LPG 3 – 4 botle 3 kg Rp. 15.000/botle Rp. 45.000 -60.000

Cooking Wood + LPG 1 botle 3 kG + 30 bundle Fire Wood

Rp.15.000/bottle + Rp 1000/bundle

Rp. 45.000

Cooking Wood 60 bundle Rp 1000 Rp.60.000,-

Lighting kerosene lamp - - -

Lighting Electricity 100 kwh Rp 600 /kwh Rp. 75.000,-Transportation Gasoline 5 liter Rp 5.000 Rp. 25.000,-From survey need assesment


- Current energy provision


Size of Energy suppy

Type of energy Energy Supply (Bundle/Litre/Watt) Remark

Wood CookingKerosene - Cooking &Lighting

Electricity /PLN - LightingGasoline Transportation


- Estimate of total demand for the proposed technology


Detail of dairy cow farm at Sruni Village

NO Description Quantity of Dairy cow farmer TOTAL QTY OF

COW

1 Dairy cow farmer with 1 cow 108 108





6 Dairy cow farmer with 6cow 17 102










TOTAL 414 1248




detail of goat farm at Sruni Village

NO Description Quantity of Dairy Goat

farmer TOTAL QTY OF GOAT

1 Dairy cow farmer with 1 goat 14 14

2Dairy cow farmer with 2 goat

19 38

3Dairy cow farmer with 3 goats

16 48


7 28

5Dairy cow farmer with 5goats

8 40


7 42


3 21


0 0


1 9


1 10

TOTAL 76 250




Chart of the total amount of breeder at Sruni Village





Chart of the total corespondent of each background


In the need assessment, we conducted survey with the total respondets are 40 people with the background of each respondent as followings




Chart of the total Biogas Energy Demander


Based on the survey, most of the people want to build the biogas digester. From the 40 respondents, 23 people or 58 % have a high demand to build the digester and 11 people or 28 % want to build the digester. Only 6 people or 15 % not decide yet to build the digester

Market analysis (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricCaiptal cost for construction/pre contrsuction Caiptal cost for construction/pre contrsuction

Dairy Cow Breeder414 household

Total Cow 1248

Potency Total Dairy Cow Breeder

have more 3 cows is 194 Cow Breeder So the potency of biogas at Sruni 194 digester

Can be builded

Biogas Potency at Seruni…




Target digester will be builded

No Description Qty Target digester will be builded 2011 2012 2013 2014

1 Dairy cow farmer with 3 cows 75 8 8 8 8



4 Dairy cow farmer with more than 5 cows

50 5 5 5 5

Total of dairy cow farmer 194 20 20 20 20

The Indonesian Domestic Biogas Programme (IDBP) is in Indonesia Better known as the BIRU Programme. Biru means “ Blue” and BIRU Program (Domestic Biogas) are managed and implemented by Hivos (Humanitarian Institute for Development Cooperation) and SNV-both are from the Dutch development agency, and funded by the Embassy of the Kingdom of the Netherlands and supported by the Directorate General of Electricity and Energy Utilization of Ministry of Energy and Mineral Resources .

3. Product descriptionBIRU (BIOGAS RUMAH ) PROGRAMME

1. Geographic description of selected location:1. Geographic description of selected location:

- Introduction of the BIRU PRIGRAMME


BIRU (BIOGAS RUMAH ) PROGRAMME


- Introduction of the BIRU PRIGRAMME




Technology description


The reactor used by BIRU has six components, namely: • 1) inlet that serves as a mixing room for the entry of animal manure, • 2) reactor that serves as the anaerobic decomposition chamber; • 3) gas container, storage space, • 4) outlet which serves as a space divider, • 5) the gas transporter room, and • 6) hole deposition as a place to rest processed biogas reactor.





the figure of reactor components





Diagram of installation of biogas reactors





The technical design of a typical biogas reactor of the BIRU program



The cost of a biogas installation and financing options


The detail estimated cost of the biogas reactor according to the size of the volume for area Boyolali regency

Sizes (m3) 4 6 8 10 12

Cows (ekor) 3 4-5 6 7-8 9

Total kg of manure per day

30 45 60 75 90

Gas produced (m3) 1 1,5 2 2,5 3

Duration of use to stove (hour)

4 6 8 10 12

Construction cost (IDR million)

5,7 6,3 7 8 8,8

Subsidies from Hivos(IDR million)

2 2 2 2 2

The cost to be paid (IDR million)

3,7 4,3 5 6 6,8

• BIRU biogas reactor has a standard in the construction i.e standard materials, standard work processes, standards builders and supervisors, the standard way of working, and management standards. So when the construction of biogas reactors is in accordance with these standards, special mantainance is not required , the most important thing is to continuously incorporate manure in accordance with the provisions of the biogas reactor operation.

• Usually maintenance is maintenance performed on the leakage of the reactor that is guaranteed for 3 years, maintenance of the supporting component (stove, pipe, main valve, hose, etc.) that are guaranteed for one year.



Mantainance requirements




Construction process


BIRU program will have broad effects of 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• Empowering women by providing opportunities in the national domestic biogas program as

an operator of biogas engines, lights, and refrigerator. In Indonesia, women also can take the role as campaigners for biogas, biogas users coaches, and entrepreneurs of small and medium-scale 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



Social and economic impact description


Economic benefits

• Social benefits to adopting the proposed technology are:– Reducing the burden of women to collect firewood and facilitates alternative

additional activities to fill the time available, especially for female family members

– Improving access to sanitation and to reduce diseases associated with poor sanitation

– Reducing air pollution from smoke, which is closely related to respiratory diseases, eye infections, and accidental fires accidents due to the use of fire in open space

– Improving sanitation and hygiene education



Social and economic impact description


Social benefits

Currently energy issues in Indonesia is extremely complex, so it will need the policy that support the achievement of self sufficient energy. In the energy policy can be grouped into energy policy in national level, provincial level and district level.Generally policy is a policy that can be applied national level, while the provincial and district levels is emphasized policy accordance with the conditions of each region

4. Regulatory setting1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Regulatory setting1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

example of good policy in the national level, regional and district level

Regulatory setting1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

• To developing biogas-based muli- sector involves various parties such as service providers and local construction workers are supported by institutional training providers. The increasing interest of the community against the biogas must be balanced with the kompetetif price and satisfactory after sales services. BIOGAS Program must be done collaborations with some parties such as private parties, government and civil society to ensure the establishment of domestic biogas industry infrastructure. Credit lending institutions such as banks and cooperatives, educational institutions such as universities, such as milk processing industry, household appliances manufacturers of biogas and organic farmers' associations are some examples of institutions that participate in the program BIOGAS.

5. Project management1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Description of the project champion

In the program activities in the village Biogasisasi Sruni we call Sruni BIOGAS DEVELOPMENT TASK FORCE (SBDTF), several parties who were directly involved in this activity include:

• Embassy of Netherlands Kingdom • Energy Research Centre of Netherlands • HIVOS Indonesia and HIVOS Solo• Ministry of MEMR • Engineering Faculty Diponegoro University/ Casindo Jateng • LPTK Solo as CPO• KUD Musuk as Multi Finance Institution • Representative of cow farmer

Project management1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Organization of the project


BIRU Organization Structure

CPO

• Mencari pasar•Melakukan pekerjaan

konstruksi & Memberikan garansi

•Mendapatkan pelatihan tukang

MFI•Memberikan akses kredit pada konsumen yang tidak dapat membayar tunai

SLURRYextension

•Memberikan informasi mengenai pengolahan slurry

•Menampung slurry untuk diolah menjadi pupuk

•Mendistribusikan dan menjual pupuk

CPO : Construction Partner MFI : Multi Finance Institution


Organization of the project Development of BIOGAS at Seruni Village

CASINDO

JATENG

HIVOS

JATENG

TASK FORCE

SERUNI BIOGAS

DEVELOPMENT

Embassy of Netherlands Kingdom , ECN, HIVOS, Ministry of MEMR

CPO

(LPTK)

MFI

KUD Musuk

Reprsentative of cow farmer

Team Sozialitaion

and Slurry Extion

The name of the project management for the Biogas Project at the Sruni Village as the following :

• The Head of HIVOS Office Solo as a Head of Task Force Sruni BIOGAS Development Project ( Mr William HIVOS SOLO Office )

• The Coordinator of Casindo Project Central Java as a vice of Task Force Seruni Biogas Development Project ( Joko Windarto - Enginneering Faculty of Diponegoro University – Semarang – Jl Prof Sudarto – Kampsu Undip Tembalang Semarang, Telp 024-7460057 )

• LPTP Solo as a CPO Task Force Biogas Development Project at Sruni Village ( Mr. lilik – LPTP Office Jl. Raya Palur km 5, Tegal Asri RT 04/VI, Kelurahan Ngringgo, Jaten, Karanganyar 27772, Jateng Telp : 0271 826620)

• KUD Musu k as a MFI Task Force Biogas Development Project at Sruni Village ( Mr Tirtihardi, Desa Musuk, Kec. Musuk Boyolali..Jateng )

• Mrs Bernard from HIVOS Office Solo and Mr Zulian from Undip as a technical team


The Name and Address of Project Management

• The authorities are monitoring the biogas reactor construction after construction completed is CPO / LPO and audit quality from Hivos. CPO / LPO regularly monitoring the biogas reactor is built. Each reactor biogas given the responsibility of a supervisor certified (ID card) in charge of some people is also a certified builders (ID card).

• Audit quality monitoring on a regular basis every 6 months until the guarantee is completed (3 years). Monitoring conducted to see if the biogas reactor to function properly, resulting in gas with 80 cm of water pressure, no leakage of the reactor, no hose and faucet leaks, the stove burning with blue flame, forming slurry, and so forth


Monitoring after construction

6. Technical feasibility1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Technical requirements of the technology (for each of the different installation options)

Size of land requirement for the each digester size

Sizes (M3) 4 6 8 10 12

Space requirement (M x M) (3 x 6) (3,5 x 7) 4 x 8 4,5 x 9 5 x 10

• Biogas reactor to produce gas that has a gas pressure of 80 cm of water. min 55 cm water pressure, 2 days after full charging has begun to burn, and cook with blue flame and faster than kerosene stove.

• Consumers needs fuel that: 1) cheap, and easy to cook on, 2) saves time (no need to search for firewood, not lining up to buy kerosene), 3) safe when used against explosion, 4) clean and healthy, and 5) increase family welfare. Biogas meets all these needs.

Technical feasibility (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Output

Technical feasibility (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Availability of input requirements in the selected location • Based on the survey conducted in the villagem the number of households that

have 3 or more cows is 149 households. At the Sruni village, the Water avalibility in the selected location is not very sufficient. All household gets the water from the water rain, Every wet season , They keep the water from the rain in the tank. They people also uses the water for cooking, bathing, and wasing from the rain water.

• Based on the needs assessment questionnaire the households in the selected location (villages) have extensive land. At the Sruni village , almost the the households have sufficient space to install the digesters.

• According the situation at the Sruni village, the cow farmer is dairy milk. It mean they will have the cow in the every time and we belive the hosehold always have a cow. When the household have 3 or more cows, the supply of feedstock for the digester will be constant. So the produce of the biogas from the biodigester will not reduce and the household can uses the gas for cooking every day 65 is only from the 100 surveyed households; but you do not know, if there are more households with 3 or more cows in Jeruk Manis.

7. Financial analyses1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Cost of the Project Biogas at Sruni Village

Capital cost for planning

Planning Costs Year 0

P1 Obtaining all permits - 0

P2 Technical analysis - 0

Subtotal 0

TOTAL all years - 0

vFinancial analyses (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Cost of the Project Biogas at Sruni VillageCaiptal cost for construction/pre contrsuction

Caiptal cost for construction/pre contrsuction Caiptal cost for construction/pre contrsuction

Construction / Pre-operations Costs Year 0 Year 1 Year 2

C1 Land Acquisition - - 0 0

C2Final engineering

and design - - 0 0C3 Workers training - - 0 0C4 Machinery - - 0 0C5 Machinery - - 0 0C6 Machinery - 0 0C7 Testing - 0 0C8 Testing - 0 0C9 Testing - 0 0

Subtotal - -0 -0TOTAL all years - 0 0

Financial analyses (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Cost of the Project Biogas at Sruni VillageTotal Cost of digester with size 4 , 6, 8, 10 m3 per each unit


No Description Unit price/unit qty Total Price qty Total Price qty Total Price qty Total PriceA MATERIAL1 brick pcs 400,00Rp 1400 560.000Rp 1600 640.000Rp 1900 760.000Rp 2100 840.000Rp 2 coarse agrreagte m3 140.000,00Rp 0,8 112.000Rp 1 140.000Rp 1,3 182.000Rp 1,5 210.000Rp 3 fine agreegate m3 140.000,00Rp 1,1 154.000Rp 1,2 168.000Rp 1,3 182.000Rp 1,4 196.000Rp 4 spilt m3 140.000,00Rp 1,3 182.000Rp 1,5 210.000Rp 1,7 238.000Rp 1,9 266.000Rp 5 cement 40 kg sak 41.000,00Rp 20 820.000Rp 25 1.025.000Rp 30 1.230.000Rp 35 1.435.000Rp 6 steel bar pcs 33.000,00Rp 3 99.000Rp 3 99.000Rp 4 132.000Rp 5 165.000Rp 7 steel wire kg 14.000,00Rp 1 14.000Rp 1 14.000Rp 1 14.000Rp 1 14.000Rp 8 Nail and Clamp pcs 1.000,00Rp 30 30.000Rp 30 30.000Rp 30 30.000Rp 30 30.000Rp 9 1 Main Pipe Gas (1,5")pcs 105.000,00Rp 1 105.000Rp 1 105.000Rp 1 105.000Rp 1 105.000Rp

Capacity : 4m3 Capacity : 6m3 Capasity 8m3 Capasity 10m3




No Description Unit price/unit qty Total Price qty Total Price qty Total Price qty Total Price10 Fitting PVC 0,5"pcs 20.000,00Rp 10 200.000Rp 10 200.000Rp 10 200.000Rp 10 200.000Rp 11 PVC Pipe Gas (0,5")pcs 15.000,00Rp 12 180.000Rp 12 180.000Rp 12 180.000Rp 12 180.000Rp 12 Main Valve pcs 45.000,00Rp 1 45.000Rp 1 45.000Rp 1 45.000Rp 1 45.000Rp 13 Sieve Coarse (1/4")m2 15.000,00Rp 1 15.000Rp 1 15.000Rp 1 15.000Rp 1 15.000Rp 14 Water Drain pcs 45.000,00Rp 1 45.000Rp 1 45.000Rp 1 45.000Rp 1 45.000Rp 15 Gas Valve pcs 120.000,00Rp 2 240.000Rp 2 240.000Rp 2 240.000Rp 3 360.000Rp 16 Stove pcs 100.000,00Rp 1 100.000Rp 1 100.000Rp 1 100.000Rp 2 200.000Rp 17 1 set Manometerpcs 125.000,00Rp 1 125.000Rp 1 125.000Rp 1 125.000Rp 1 125.000Rp 18 Mixer pcs 125.000,00Rp 1 125.000Rp 1 125.000Rp 1 125.000Rp 1 125.000Rp 19 Hose Gas 3/8" meter 14.000,00Rp 1 14.000Rp 1 14.000Rp 1 14.000Rp 2 28.000Rp 20 Seal tape pcs 10.000,00Rp 2 20.000Rp 2 20.000Rp 2 20.000Rp 2 20.000Rp 21 PVC inlet D 4" pcs 140.000,00Rp 2 280.000Rp 2 280.000Rp 2 280.000Rp 2 280.000Rp 22 PVC pipe glue pcs 10.000,00Rp 2 20.000Rp 2 20.000Rp 2 20.000Rp 2 20.000Rp 23 Emulsion paint liter 65.000,00Rp 2 130.000Rp 2 130.000Rp 2 130.000Rp 2 130.000Rp


TOTAL COST FOR MATERIAL (A) Rp 3.615.000 Rp 3.970.000 Rp 4.412.000 Rp 5.034.000




No Description Unit price/unit qty Total Price qty Total Price qty Total Price qty Total Price

BLABOR COST

24 Tukang (Skill Labor )Person 60.000,00Rp 9 540.000Rp 10 600.000Rp 11 660.000Rp 12 720.000Rp 25 Buruh (unskill Labor)Person 40.000,00Rp 19 760.000Rp 22 880.000Rp 24 960.000Rp 28 1.120.000Rp


SUBSIDY FROM HIVOS 2.000.000Rp 2.000.000Rp 2.000.000Rp 2.000.000Rp HOUSEHOLD SOULD BE PAID 3.615.000Rp 4.200.000Rp 4.832.000Rp 5.724.000Rp

SERVICE FEE + maintenance 700.000Rp 750.000Rp 800.000Rp 850.000Rp TOTAL COST OF BIODIGESTER 5.615.000Rp 6.200.000Rp 6.832.000Rp 7.724.000Rp

TOTAL LABOR COST (B) Rp 1.300.000 Rp 1.480.000 Rp 1.620.000 Rp 1.840.000

TOTAL COST FOR MATERAL AND LABOR COST (A+B) 4.915.000Rp 5.450.000Rp 6.032.000Rp 6.874.000Rp

Financial analyses (cont)1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricCaiptal cost for construction/pre contrsuction Caiptal cost for construction/pre contrsuction

Dairy Cow Breeder414 household

Total Cow 1248

Potency Total Dairy Cow Breeder

have more 3 cows is 194 Cow Breeder So the potency of biogas at Sruni 194 digester

Can be builded

Biogas Potency at Seruni…


Cost of the Project Biogas at Sruni VillageTotal target the digester will be builded to Sruni till 2014


No Description Qty Target digester will be builded

2011 2012 2013 2014




4 Dairy cow farmer with more than 5 cows

50 5 5 5 5

Total of dairy cow farmer 194 20 20 20 20


Cost of the Project Biogas at Sruni Village

Total cost to develop biogas at Sruni Village till year 2014


OPERATING COSTSYear 2011

(Rp)Year 2012

(Rp) Year 2013 (Rp) Year 20144 (Rp)

O1General and Administrative Costs 14,000,000

14,000,000

14,000,000

14,000,000

O2 Labor costs 26,000,000 26,000,000

26,000,000

26,000,000

O3 Material costs 72,300,000 72,300,000

72,300,000

72,300,000

TOTAL 112,300,000 112,300,000

112,300,000

112,300,000

Chapter 7 : Financial analyses1. Geographic description of selected location:1. Geographic description of selected location:Map of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk DistricMap of Boyolali Regency and Musuk Distric

Cost of the Project Biogas at Sruni VillageTotal cost to develop biogas at Sruni Village till year 2014


OPERATING COSTSYear 2011

(Rp)Year 2012

(Rp) Year 2013 (Rp) Year 20144 (Rp)

O1General and Administrative Costs 14,000,000

14,000,000

14,000,000

14,000,000

O2 Labor costs 26,000,000 26,000,000

26,000,000

26,000,000

O3 Material costs 72,300,000 72,300,000

72,300,000

72,300,000

TOTAL 112,300,000 112,300,000

112,300,000

112,300,000

Grants and Subsidies Rp Year 0Year 2011

(Rp)Year 2012

(RP)Year 2013

(Rp) Year 2014

(Rp)

1 Pre-operation support (Casindo)

2 For Operation ( Hivos) 40,000,000

40,000,000

40,000,000

40,000,000

Subtotal - 40,000,000

40,000,000

40,000,000

40,000,000

TOTAL all years

160,000,000

The total cost for subsidy biogas at Sruni Village till 2014


RevenuesThe total revenue till year 2014 for biogas program at Sruni


Revenues Year 1 Year 2 Year 3 Year 4

R1 Revenue from 1 Rp. 72,300,000 Rp. 72,300,000 Rp. 72,300,000 Rp. 72,300,000

Units 20 20 20 20

Revenue per Unit Rp. 3,615,000 Rp. 3,615,000 Rp 3,615,000 Rp. 3,615,000

R2 Revenue from 2 -

Units

Revenue per Unit

REVENUES Rp. 72,300,000 Rp. 72,300,000 Rp. 72,300,000 Rp. 72,300,000

The cash flow projection is also the bases to calculate the following financial indicators, which funders use to decide whether to fund a project or not:

• the Net Present Value of Net Income (NPV NI), which is the difference between the discounted costs and revenues and shows what is the future income stream that the project would generate worth today.

• the Benefit cost ratio (B/C ratio), which shows whether and by how much the project revenues exceed the project costs and by this whether it is profitable or not. If the B/C ratio is less than one, then the project is not profitable (which does not mean it is not worth implementing, but then its social and environmental benefits must be made very clear).

• the Internal rate of return (IRR), which is the discount rate at which the NPV of the investment project is zero (this is very relevant for projects that need external financing; if the bank loan interest rate is higher than the project IRR, then such a project likely will not get funded).


The cash flow


In the Project Biogas at Sruni village, the IRR for commercial bank is 12 % so we use this amount to calculate the cash flow and the detail calculation of cash flow can be looked at table


The cash flow



The cash flow ( option I)


Detail of Cash flow for Bioags Project at Seruni Village ( subsidy Hivos till 2014)

TOTALS Year 0 Year 1 Year 2 Year 3 Year 4

COSTS (& GRANTS/SUBSIDIES) 2010 2011 2012 2013 2014

Capital Cost 0.0 0.0 0.0 0.0 0.0

Capital / pre-operation grants 0.0 0.0 0.0 0.0 0.0

Operating costs 0.0 112,300,000.0 112,300,000.0 112,300,000.0 112,300,000.0

Operating grants 0.0 40,000,000.0 40,000,000.0 40,000,000.0 40,000,000.0

TOTAL COSTS 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV TOTAL COSTS (discount rate = 12%) 219,600,357.8 0.0 64,553,571.4 57,637,117.3 51,461,711.9 45,947,957.1

BENEFITS

Revenues 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV revenues 219,600,357.8 0.0 64,553,571.4 57,637,117.3 51,461,711.9 45,947,957.1

Interest

Taxes

Depreciation

NET INCOME 0.0 0.0 0.0 0.0 0.0

Accumulated Income* 0.0 0.0 0.0 0.0 0.0

NPV NET INCOME 0.0 0.0 0.0 0.0 0.0 0.0

Benefit / Cost Ratio 1,00


The cash flow (option II )


Detail of Cash flow for Bioags Project at Seruni Village ( subsidy till 2012)

TOTALS Year 0 Year 1 Year 2 Year 3 Year 4COSTS (& GRANTS/SUBSIDIES) 2010 2011 2012 2013 2014

Capital Cost Cc 0.0 0.0 0.0 0.0 0.0

Capital / pre-operation grants Gc 0.0 0.0 0.0 0.0 0.0

Operating costs Co 0.0112,300,000.0 112,300,000.0 112,300,000.0 112,300,000.0

Operating grants Go 0.0 40,000,000.0 40,000,000.0 0.0 0.0

TOTAL COSTS TC = (Cc-Gc)+(Co-Go) 0.0 72,300,000.0 72,300,000.0 112,300,000.0 112,300,000.0NPV TOTAL COSTS (discount rate = 10%)

NPV TC = TC / (1+disc rate)t; t = year of operation 12% 273,492,290.8 0.0 64,553,571.4 57,637,117.3 79,932,921.8 71,368,680.2

BENEFITS Revenues R 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV revenuesNPV R = R / (1+disc rate)t; t = year of operation 12% 219,600,357.8 0.0 64,553,571.4 57,637,117.3 51,461,711.9 45,947,957.1

Interest

Taxes

Depreciation

NET INCOME NIt = Rt -TCt 0.0 0.0 0.0 -40,000,000.0 -40,000,000.0

Accumulated Income* AIt = AIt-1 + NIt 0.0 0.0 0.0 -40,000,000.0 -80,000,000.0

NPV NET INCOMENPV NI = NI / (1+disc rate)t; t = year of operation 12% -53,891,933.0 0.0 0.0 0.0 -28,471,209.9 -25,420,723.1

Benefit/cost Ratio B/C ratio = NPV R / NPV TC 0.803


The cash flow ( option III)


detail of the cash flow for the option 2 with the interest rate 6 % from the bank and given to the customers ( cow farmer ) 12 % ( Subsidy till 2014)

TOTALS Year 0 Year 1 Year 2 Year 3 Year 4COSTS (& GRANTS/SUBSIDIES) 2010 2011 2012 2013 2014Capital Cost 0.0 0.0 0.0 0.0 0.0


Operating costs 0.0 112,300,000.0 112,300,000.0 112,300,000.0 112,300,000.0


TOTAL COSTS 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0NPV TOTAL COSTS (discount rate = 10%) 12% 219,600,357.8 0.0 64,553,571.4 57,637,117.3 51,461,711.9 45,947,957.1 BENEFITS

Revenues 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV revenues 6% 250,527,135.8 0.0 68,207,547.2 64,346,742.6 60,704,474.2 57,268,371.9

Interest

Taxes

Depreciation

NET INCOME 0.0 0.0 0.0 0.0 0.0


NPV NET INCOME 12% 0.0 0.0 0.0 0.0 0.0 0.0

Benefit/cost Ratio 1.141


The cash flow ( option IV)


detail of the cash flow for the option 2 with the interest rate 6 % from the bank and given to the customers ( cow farmer ) 12 % ( note : the subsidy HIVOS till 2012)

TOTALS Year 0 Year 1 Year 2 Year 3 Year 4COSTS (& GRANTS/SUBSIDIES) 2010 2011 2012 2013 2014

Capital Cost 0.0 0.0 0.0 0.0 0.0


Operating costs 0.0 112,300,000.0 112,300,000.0 112,300,000.0 112,300,000.0


TOTAL COSTS 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV TOTAL COSTS (discount rate = 10%) 12% 219,600,357.8 0.0 64,553,571.4 57,637,117.3 51,461,711.9 45,947,957.1

BENEFITS

Revenues 0.0 72,300,000.0 72,300,000.0 72,300,000.0 72,300,000.0

NPV revenues 6% 250,527,135.8 0.0 68,207,547.2 64,346,742.6 60,704,474.2 57,268,371.9

Interest

Taxes

Depreciation

NET INCOME 0.0 0.0 0.0 0.0 0.0


NPV NET INCOME 12% 0.0 0.0 0.0 0.0 0.0 0.0

Benefit/cost Ratio 1.141

8. Risk analysis and contingency planning

Completion riskThere are several things that can cause delays in the construction of the biogas digesters although funds were available, including:

The cost of cement: cement is a very significant material in the construction of a biogas digester, and if cement prices increase by the run cause delayed biogas digester construction. Some of the professional mason (trained for this job) might go after another job that is more promising (where cost of labour is higher) compared with standard from HIVOS.CPO or Hivos could be late in responding to users who are interested to build a biogas digester.

Technology riskThe biogas digester technology used in the BIRU program gets a warranty for 3 years. The BIRU program is almost 100% successful in building biogas digesters which are operating properly on the Central Java Province. Thus the risk of the technology not performing well is negligible. So far, the BIRU program in Central Java Province No have problems in the seruni vilage ( 3 digesters was Built). But biru have one problem with 1 user at Mojosongo District (37 digesters was built), where the inserted cow manure did not produce gas for 7 days. That means that the only plausible technology risk is possible wrong mixing of manure or have leakage at the Dome digesters. This risk can be eliminated with a proper socialization process and a user manual, also should be monitoring and supervise by the CPO .

Supply riskThe materials needed to build a biogas digester are available in adequate quantity around the location, so there is no risk of supply shortage of construction material.There is no possible risk of the delivery the components for biogas stoves.

Economic riskThere is a real risk that people in the village can not the pay for the biogas digester, because the price to build a biogas digester is 3 million IDR and more (after the subsidy). Average income per month of the villagers is medium income. But, the Hivos subsidy is not sufficient to build a biogas digester because almost all the farmers if they have the cash money, they just thinking .Economic risk would be smaller if there are support from the government, cooperatives, banks, other financial institutions to build a biogas digester through soft loans or credit.

Financial riskChanges in interest rates would cause financial risk to occur. Historical growth shows that interest rates in Indonesia are relatively stable (constant) so that the financial risk is very small.

Political risk

The political framework at the national, regional level in Central Java Province and also the local government are supporting the implementation of the biogas digester program, because the government's main priority now is to increase the of renewable energy target on 2025 is 17 %.In addition, national level and regional leves have the program DESA MANDIRI ENERGY ( Self Sufficient Energy ) Program which aims to achieve the target in year 2014 are 20 villages DME in Central Java province which fits well with the BIRU program.

Environmental riskBiogas digesters have no negative environmental impact on the community or a user, but several positive impacts, including:

dirty cages and cows that used to disturb the environment, are now clean, tidy and do not represent a health hazard.The smoke from wood stoves and fuel oil which can harm the health, is now replaced by a clean and safe cooking fuel.Less pressure on forests around the village which are harvested by residents looking for firewood.

Social risk

Implementation of biogas can be burdened by possible social risks for some people, namely:

Residents who have not obtained the education and socialization of the benefits of biogas still think of it as a taboo / unclean use of cow dung. So that important to carry out more socialization.The implementation schedule can create jealousy with those that cannot afford a digester, or towards those that get it first to etc.

Force majeure riskForce majeure risk that may occur is the occurrence of earthquakes, volcanic eruption, or landslide. Generally, often occurrence of earthquakes in Lombok island, but the scale under 5.0 SR and the occurrence of volcanic eruption or landslide not occur in last 10 year.

Documentation and discussion

Energy used for cookingAlthough electricity has reached entire of the village and most households have gas stove for cooking, there are still many households use firewood for cooking because of expensive price of LPG gas.

Install one digester at seruni vllage for demo unit (capacity 8 m2 )

Start Construction 24 Sept 2010 Finish on 5 Oct 2010 Start using for Cooking on 14 Oct 2010 for 3 house hold ( capacity 8m2, with 10 cows )

Site Visit to Koperasi Susu Mojosongo, Boyolali Regency

Koperasi Susu Mojosongo as MFI and CPO Koperasi Susu Mojosongo installed 35 Biogas Digester Household as a member Koperasi Susu Mojosongo very easy to get a credit for installation biogas digester System payment, deduct of production milk from the own of cow breeder . Per day deduct 2,3 liter milk / day


Slurry, can be used for fertilizer (liquid )

Closing…

Any comments?

Thank you…Thank You

PER BULAN Slurry Rp. 162.000 ???PER BULAN LPG Rp. 30.000Kebersihan Rp. 8.000KEUNTUNGAN PER BULAN = Rp

200.000KEUNTUNGAN PER TAHUN = Rp.

1.400.000KEUNTUNGAN 3 TAHUN = Rp.

4.200.000Peternak akan untung setelah 3

tahun

UNDIP TEAM SEMARANG Meeting, 9 – 13 July 2011

Documents

Transcript of UNDIP TEAM SEMARANG Meeting, 9 – 13 July 2011