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Analysis of Biogas Financing Using Causal Loop Diagram in Lembang Area, West Java, Indonesia
Purnama Alamsyah
Kusnandar
12th Conference of Science Council of Asia (SCA)
And International Symposium
10-12 July, 2012
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Content
1. Introduction
2. Literature Review
3. Methodology
4. Result and Discussion
5. Conclusion
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Introduction
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Introduction
There are many biogas projects dedicated forsmallholders in rural Indonesia
The development of renewable energy such asbiogas in Indonesias rural area has met variousconstraints social, economy, and institutional
But not many who consider financing factor as animportant factor in the success of biogas project.
The main problem that farmers and ranchers inrural areas have to face is in the inability to fullypay biogas plant they need financing assistancein order to easily adopt the biogas technology
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Introduction (2)
Financing factor of renewable energy such asbiogas is an open problem to be improved.
This paper aims to analyze the financing of biogasproject in Indonesias rural areas especially inLembang, West Java by using Causal Loop Diagram(CLD).
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Literature Review
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Literature Review
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Benefits of biogas
Drivers and barrier of biogas implementation
Financing of domestics biogas plant (Financingenvironment, Financing channels, Financinginstruments, financial scheme)
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Methodology
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Methodology
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Literature Review literature review and information about biogasdevelopment, renewable energy development, biogas financing, renewableenergy financing were collected. Data source of constructed biogas are basedon recorded data by Dinas Peternakan Provinsi Jawa Barat, KPSBU, and BIRU
Individual interview individual interview were conducted to thedairy farmers in Lembang, Dairy Farmers Group in Lembang, management ofKPSBU, Dinas Peternakan Provinsi Jawa Barat, Dinas Pertambangan dan EnergiProvinsi Jawa Barat, BIRU, ITB, construction companies of biogas digester, andappliance biogas companies.
On-site survey respondents of on-site survey were chosen throughthe consideration of the scale farming, the amount of cows owned, and socialstatus of the farmers.
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Methodology (2)
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The research was conducted in Lembang sub-district,West Bandung, state of West Java, Indonesia. Here,biogas program had been intensively implemented.The potential physical areas are horticulture farming,dairy farming, and tourism
Using Causal Loop Diagram (CLD). CLD is a tool forsystematically identifying, analyzing andcommunicating feedback loop structures
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Result and Discussion
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General Model
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Cost of Biogas Investment
Ratio of Income and Expenditure
Income +
Biogas Output
Expenditure for Living
-
-
Biogas Digester Investment
+
Positive Image for Biogas Digester
+
Rate of Adoption
+
+ +
Biogas Waste Output
+
Cost of Biogas
+
- Business capital usage
Investment cash
usage
+
Cash -
+ +
-
+
-
-
Business capital
desire +
Cattle business
+
+
Pollution -
+
R1 B1
B2
Negative feedback. biogasresidues or bio-slurry. If it is nottaken care properly, it wouldpollute the environment. Eventhough is not as smelly as before,it would still pollute the river andother waterways as disposal sites.
Negative feedback. investment cost wouldsurely disrupt the financial cash of the farmersthat mostly are intended for their businesscapital. The disruption of the cash would bringimpact to the reduction of their business capitaland in turn would lessen their income as well.The lessen income would then decrease theincome ratio to expenditures, would alsodecrease the positive image
Positive feedback. Thebigger the biogas outputmeans the higher usage ofbiogas as energy source. Theimpact would increase thepositive image of biogastechnology so that it wouldincrease the level of farmersadopting the technology
Subsystem of waste
Subsystem of Cost
Subsystem of biogas output
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Grants Model
Cost of Biogas Investment
Ratio of Income and Expenditure
Income +
Biogas Output
Expenditure for Living
-
-
Biogas Digester Investment
+
Positive Image for Biogas Digester
+
Rate of Adoption
+
+
+
Biogas Waste Output
+
Cost of Biogas
+
- Business capital
usage
Investment cash
usage
+
Cash -
+ +
-
+
-
-
Business capital
desire +
Cattle business
+ +
Pollution -
+
Grant from Government
Availability of Grant
-
+ -
B
By the government grants, then the problem of highinvestment cost in biogas digester shall be solved.However, as explored further, the grants programstill has a budget limit. This condition resulted in onlythe minority of the farmers would get it. The subsystem still negative feedback
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Credit Model
Cost of Biogas Investment
Ratio of Income and Expenditure
Income +
Biogas Output
Expenditure for Living
-
-
Biogas Digester Investment
+
Positive Image for Biogas Digester
+
Rate of Adoption
+
+ +
Biogas Waste Output +
Technology
Quality of Digester
+
+
Price of Digester + +
Cost of Biogas +
- Business capital usage
Credit for Digester
Investment
cash usage +
Kas -
+ +
-
-
+
-
-
Raw material
potential of organic
fertilizer
Production desire
Of organic fertilizer
+
organic fertilizer production
+
+
organic fertilizer +
farming cost -
Organic
fertilizer
selling
+
+
Business capital
desire + +
Cattle business
+ +
Technique of
organic fertilizer
+
market for organic fertilizer
+
+
Assistance and training
program
Supply chain system for organic fertilizer
organic fertilizer promotion
+ +
Pollution - -
This credit system helps farmersbecause it is not disrupt otherbusiness capital
Higher technology. biogas output produced isgreater so that it is more effective in use asenergy source to farmers daily needs of energy
Higher technology with greater biogas output, along with applied creditsystem and subsidies are expected to increase the number of biogas digesteradoption. However, there is a question about the biogas utilization as energysource has greater value than the cuts of milk payment for credits?
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Conclusions
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Some Conclusions
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Biogas investment are expensive investment,therefore, to reduce the costs we need to create afinancing system that could facilitate instead ofmaking farmers more economically vulnerable
There are financing schemes offered, be itgovernment grants or even credit system andsubsidies offered by NGO such as BIRU Programcooperated with KPSBU
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Some Conclusions (2)
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Financing system through credit system andsubsidies was perceived more successful to increasethe adoption of biogas technology in Lembang area
One of the contributing factors in increasing biogasproject sustainability is the issue about utilization ofbiogas residues, bio-slurry
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Thank you !
Purnama Alamsyah | [email protected]
Kusnandar | [email protected]
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