Institutional Capacity Role for Successful Microhydro Project in Bali; Lesson learn from Microhydro Susuan Karangasem

INTRODUCTION

In 2007, the state-owned electricity company PLN developed a microhydro project as part of their Corporate Social Responsibility (CSR). The plant is located in village ofSusuan, District of Karangasem Bali.The launching of the power plant was inaugurated by Minister of Energy and MineralResources. The plant was the first grid-connected microhydro project in Bali.After the commissioning period, it was granted to local co-op namely Koperasi Karangasem.The local co-op maintained the plant and sold the energy tothe utility in this case PLN Bali.

The plant uses crossflow type turbine coupled to 25 kW 220/380 V 50 Hz three phase synchronous generator.The fore bay was fed from rice field irrigation channel and tunneled down to a turbine through a penstockwith effective head of 10 meter. The power was injected to utility’s 20 kV grid after being stepped up using380V/20 kV 20 kVA transformer.The co-op hadenjoyed the benefit of selling power to PLN grid without any investment made and it was expected to produce energy of about 20 - 25 years. Sadly, after the second year the microhydro experienced setbacks in its operation; the plant ceased to operate hence no power production. The revenue expected from the energy sale automatically stop. The co-op has nocapacity in microhydro technology so they seek help from PLN to fix the problem.

Once, a team from Udayana University visited the plant and assessed the condition of the plant. It was identified the problem was at the synchronizing system of the plant. This component needed replacement so the generated power can be injected into the grid. The team reported the finding to the Koperasi Karangasem and they planned to get the spare parts.  However, recent visit by CORE Udayana University found the power plant was in a shocking state as most equipment were neglected and the plant was in complete standstill and shows evidence of vandalism. The surrounding site was over grown by vegetation. Apparently, the co-op had neglected the plant as it failed to operate and although they had done efforts to draw attentions from PLN and local governments but no assistance was given. In general, the project has failed and now in a complete standstill. Brief assessment over equipment of the plant found that the civil construction of the plant was still in good condition and would require minor refurbishment. Similar situation was also applies for the mechanical parts of the plant. However, most if not all of the electrical components of the power plant will require complete replacements

PROJECT [REPARATION REVIEW
The Microhydro was built by PLN as a CSR project in 2007. It was not clear if there was a technical study referred prior it development. The location selection procedure and desicion on power output capacity did not based on pre technical study, or if there was a study, it was very basic.

The location of the project is on the second branch of the river, which is very risky due to many activities involved on the upstream. Activities on the upstream will affected the water debit flowing to the project dam which also affected the power output.

Community involvement during preparation work was very limited. The community did not inform in advance about the plan to grant the project to community trough co-op, therfore they thought the project own by PLN. It did not grow the sense of belonging from community. There was no capacity building activity for community which need by community for a simple know how of microhydro that deployed in their area.

PROJECT OPERATION

Microhydro power plant was granted to co-op Koperasi Karangasem. The co-op sell the power to PLN IDR 420/ kWh contract for 2 years, and get technical assistant from PLN. The microhydro run 80% of the capacity, if there was 15 days/year system out for maintenance, then income from selling power should reach IDR 70,560,000 a year or IDR 141,120,000 for 2 years. Contract has been renewed on 2009, and the new selling price agreed on IDR 656/kWh, and no technical assistant from PLN.

Microhydro started to have technical problem on the same year of renewing contract. Management problem also discovered in the same time. The co-op has never made budget scheme for operation and maintenance (OM) for the microhydro, they relied on PLN technical assistance. Co-op is social economic organisation that is not emphasizing on getting profit but  member’s welfare. The nature of co-op is relying on decision made during member’s meeting, and has obligation to share the left over income known as Sisa Hasil Usaha (SHU).

There was a re-reorganized management co-op hapening, the microhydro power plant been ignorance since then. The current situation of microhydro power plant is very disappointed, there is only wrackage left in site due to the ignorence. Current situation has proved the lack capacity and knowledge of co-op  regarding microhydro technology. The institution has no technical staff who has engineering background. There were 3 staffs responsible for the microhydro operation but they were not engineer and never have capacity building on it.

There was not capacity building activities or other meant hapened that can improve co-op staff in microhydro, especialy during technical assistance available.

Institution  co-op is a community enterprise which it management has no authority to make strategic decision. Decision is made by member through member general meeting. Co-op has an obligation to share it revenue to it member, it is small possibility to co-op convince it member to spend budget on microhydro O&M. Microhydro business is complicated, high risk, and high OM cost, that need strong institution commitment. Other type Small Medium Enterprise (SME) might perform better in this business.

There was no effort shown by co-op to take care the microhydro asset. The possibility to re-build the microhydro project is promising, which get advantage of civil work and mechanical part that are still on site. Under new feed in tariff for microhydro connected to low voltage, energy selling price is IDR 1,143/kWh, it will give IDR 191,520,000 a year income. It is promising project, however it need a proffesional institution to manage the project.

A public and community partnership institution such as BUMDES (Badan Usaha Milik Desa) which is an enterprise that more inclusif than co-op might be more suitable to do business in RE project.

Lesson learn from this project shows that the institution capacity has signicant role on the succesful and the sustainability of microhydro project.

CONCLUSION

Institution capacity has signicant role on the succesful and the sustainability of RE project in particular microhydro project. Project preparation need to be done carefully for the sustainable operation.