global warming mitigation technology promotion project feasibility

Accomplishment Report FY2014

Global Warming Mitigation Technology PromotionProjectFeasibility Study of JCM Project for IntroducingTribrid Technology for Mobile Communication'sBase Transceiver Stations

March 2015

Ministry of Economy, Trade and IndustryContractors:

KDDI CorporationErnst & Young Sustainability Co., Ltd.

1

Contents

Chapter 1 Purpose and background of the project ................................................ 3Chapter 2 Overview of the study ............................................................................. 5Chapter 3 Policies related to climate change in Indonesia ..................................... 7

3.1 Energy consumption in Indonesia ..................................................................... 73.2 GHG Emissions in Indonesia ............................................................................ 83.3 Climate change policies in Indonesia .............................................................. 12

Chapter 4 Market for the Tribrid Technology and Its Potential for Diffusion ... 174.1 State of communication service penetration in Indonesia................................. 174.2 Status of the cellular phone market.................................................................. 184.3 Status of regulatory framework ....................................................................... 244.4 Potential for the Tribrid technology diffusion .................................................. 25

Chapter 5 Research Concerning the Trial Sites.................................................... 345.1 Research concerning the target field ................................................................ 345.2 Research on BTS in Indonesia ........................................................................ 365.3 Seminar in Japan ............................................................................................. 51

Chapter 6 Project Plan and Feasibility Assessment.............................................. 566.1 Examining project’s effects ............................................................................. 566.2 Review towards field trial ............................................................................... 60

Chapter 7 Project Planning Review ...................................................................... 627.1 Cost effectiveness ........................................................................................... 637.2 Business scheme ............................................................................................. 67

Chapter 8 MRV Methodology ............................................................................... 698.1 Outline of GHG emission reduction measures ................................................. 698.2 Establishment process of the MRV methodology ............................................ 698.3 Eligibility criteria ............................................................................................ 708.4 Reference scenario .......................................................................................... 728.5 Review of options of MRV methodologies ...................................................... 728.6 Outcome of local expert feedback hearing ....................................................... 848.7 General summary of MRV methodology options ............................................ 858.8 MRV methodology ......................................................................................... 85

Chapter 9 Quantifying Emission Reduction by the Project and Diffusion ofTechnology ................................................................................................................ 91

9.1 Emission reduction by the project ................................................................... 919.2 Projected emissions reduction by assumed diffusion of technology ................. 98

2

Chapter 10 Future Development – Policy Proposal to Advance JCM ............... 100Chapter 11 Executive Summary .......................................................................... 103

3

Chapter 1 Purpose and background of the project

The purpose of the present project is to investigate and analyze the feasibility of introducing theTribrid technology developed by KDDI Corporation (“KDDI” hereinafter) in mobilecommunication's base transceiver stations (BTSs) both in electrified and unelectrified areas inthe Republic of Indonesia ("Indonesia" hereinafter) on a commercial basis, aiming at themaximum effect in GHG emission control.

KDDI's proprietary Tribrid technology provides the possibility of defining an allocation of BTSpower sources (batteries, solar cells and diesel generators) best suited to the service provider inaccordance with the specification of the units, local power supply situation and operationalenvironments of the individual stations. The technology is expected to stabilize power supplyand achieve effective GHG emission control of the power sources connected to the grid andsupplied by diesel generators. The name "Tribrid" is registered as a trademark, and patents forthe technology have been applied for.

One hundred Tribrid BTSs have been built so far in Japan since the field trial of the technologystarted in December 2009. In addition, studies on advanced cooperational ("Renkei") control ofsolar cells, batteries and generators were started from fiscal 2011 as a part of the Ministry ofInternal Affairs and Communications' Research and Development for Enhancing Resilience ofInformation and Communication Networks to Disasters (Research and Development ofResilient Network Control Technology for Effective Communication in Large-Scale Disasters)".While experience with the technology has thus been accumulated in Japan, no attempt has beenmade to implement the Tribrid in other countries. The present study intends to provide afoothold for commercialization of the technology outside Japan.

Indonesia was chosen as the first country to introduce the Tribrid technology. The country isexperiencing a rapid expansion of mobile phone use due to remarkable economic growth: thenumber of subscribers during the last five years has grown at an average rate of 18.3% per yearto the current 320 million subscriptions in total in 2013. The number of BTSs constituting theinfrastructure of this market was about 116,000 in 2011 and is still increasing. It has beenpointed out that the BTSs in Indonesia have lower energy efficiency than their Japanesecounterparts, and energy saving or conversion to renewable energy sources is needed.Significant GHG emission reduction is expected by introducing the Tribrid technology in theBTSs in Indonesia.

These situations have promoted the present study on the first implementation of the Tribridtechnology, an original achievement of Japan, in Indonesia on a commercial basis, hopefully

4

followed by large-scale prevalence. Furthermore, the study is expected to serve as a basis forimplementation of the technology in other emerging countries that need energy-saving BTSs,such as Vietnam, and the design of an effective bilateral mechanism that supports suchactivities.

5

Chapter 2 Overview of the study

Investigation and analysis is performed as a preliminary step to the commercial introduction ofsolar panels and the Tribrid technology which controls the power source allocation in BTSs inboth electrified (connected to the grid) and unelectrified (not connected to the grid) areas and, asa consequence, to contribute to the reduction of greenhouse gas (GHG) emissions. The project issummarized in Chart 2-1.

Chart 2-1: Project overviewAreas connected to the grid Areas not connected to the grid

Power is supplied by the grid and the battery;the diesel generator serves as the backuppower source.

Power is supplied by the dieselgenerator and the battery.

Solar cells are introduced in BTSs to replace the grid and diesel generators partially ortotally. The Tribrid technology optimizes the allocation of the power sources (solar, grid,diesel and battery) to the equipment, which is expected to reduce GHG emissions.

Current status

After project completion

AC fromgrid

Rectifier Wirelessequipment

Generator Battery

DC

DCAC

Charging

Power supply


Generator Battery

DC

DCAC

ChargingPower supply


Battery

DC

DCAC

ChargingPower supply

AC

DC/DCConverter

Solar panel, about 1.5 kW

Generator

6

The following investigations are performed as part of the project:l Survey of the market associated with BTSs in Indonesial Identification of the location for a demonstration site and research on its environment for

commercializationl Establishment of the MRV methodology for calculation of emission reductions and

determination of emission reduction potentiall Study and development of the action planl Proposal of policies related to JCM

7

Chapter 3 Policies related to climate change in Indonesia

3.1 Energy consumption in Indonesia

Indonesia is an island state located between the Indian Ocean and the Pacific Ocean. It has theworld's fourth largest population of approximately 247 million living in an area of 1.89 millionsquare kilometers, an area about five times the size of Japan. The large population, amplenatural resources and expanding personal consumption are factors contributing to the recenthigh economic growth rate of five to six percent per year1.

This solid economic growth has prompted an increase in the country's energy consumption.

According to governmental statistics 2 , final energy consumption (including non-energyconsumption) in Indonesia increased from 777.9 MMBOE (million barrel oil equivalent)3 in2000 to 1,114.7 MMBOE in 2011.

Similarly, the primary energy consumption shows a general increase from 995,741.6 MMBOEin 2000 to 1,516,241.6 MMBOE in 2011, an increase of about 1.5 times.

Chart 3-1：Shares of Primary Energy Supply to Power Sources by Fuel Type in 2011

Source: Miistry of Energy and Mineral Resources (2012), “Handbook of Energy & Economic Statistics ofIndonesia”

1 The economic growth rate for 2013 was 5.8%. Source: the Ministry of Foreign Affairs of Japan website（http://www.mofa.go.jp/mofaj/area/indonesia/）2 Miistry of Energy and Mineral Resources (2012), “Handbook of Energy & Economic Statistics of Indonesia”3 MMBOE: Million Barrel Oil Equivalent. A unit to represent the energy generated by burning 1 barrel (159 liter) ofcrude oil as 1 MMBOE.

39.1%

22.0%2.1%

17.3%

1.1%

18.5%

Oil

Coal

HydroelectricPowerNatural gas

8

Chart 3-1 shows a breakdown of primary energy by source. Clearly petroleum is the mostimportant in terms of energy quantity. While its energy supply has traditionally been dependenton oil, owing to its abundant reserve, Indonesia is trying to move away from oil, considering thepossible depletion of resources, transition of its status to an oil importer due to changes in thesupply-demand balance, and oil price hikes. In recent years the Indonesian government hasplanned, in its 2008 National Electricity General Plan (RUKN) that it will decrease the share ofpetroleum fuels in the primary energy supply to power sources to 2 percent and its dependencyon coal to 63 percent by 2018.

The demand for electric power is also expected to grow owing to the economic growth. TheElectricity Supply Plan 2010-2019 (RUPTL10-19) forecasts domestic demand between 2010and 2019 (Chart 3-2). The demand in 2019 will be 327.3 TWh, or slightly more than double thatof 2010.

If the electricity demand increases significantly as per the governmental plan with an increaseddependence on coal generation, the emission of GHGs will also increase.

Chart 3-2: Trends in Demand for Electricity (Forecast)

Sources: PLN (2010), “Electricity Power Supply Business Plan 2010-2019” (RUPTL10-19);National Council on Climate Change (2010), “Indonesia’s greenhouse gas abatement cost curve”

3.2 GHG Emissions in Indonesia

The current level of GHG emissions in Indonesia is found in a recent set of data (for 2011)

0

100

200

300

400

500

600

700

800

900

1000

2010 2011 2013 2015 2017 2019 2020 2025 2030

（TWh）

(Year)

Forecast

Western Indonesia

Eastern Indonesia

Java, Bali

9

which allows for comparison of OECD and non-OECD countries: 2,052.9 Mt CO2e includingthe category of land usage, land usage changes and forestry (LULUCF). This is the eighthhighest level among 186 countries for which data are available, and accounts for 4.5% of theworld's total emissions. Given the fact that the GDP of Indonesia is 1.2% of the world's total inthe same year, the emission level should be regarded as significant.

When LULUCF data is omitted, Indonesia’s emissions total 834.5 Mt-CO2e (1.9% of theworld’s total), ranking it 10th among the 186 countries.

Chart 3-3: Global Comparison of GHG Emissions Not Including LULUCF

Source: WRI, WRI’s Climate Analysis Indicators Tool (CAIT 2.0）

Indonesia's National Council on Climate Change has published a forecast of emissions trends infuture. As shown in Chart 3-4, according to a report from the National Council on ClimateChange Indonesia’s GHG emissions are projected under a Business as Usual (BaU) scenario toincrease to approximately 3.3 Gt by 2030. While GHG emissions from LULUCF are forecast toremain largely unchanged, those from the electricity and transport sectors both are projected togrow by roughly eight times. In particular, GHG emissions from the electricity sector areexpected to rise massively from 110 Mt-CO2e in 2005 to 810 Mt-CO2e in 2030.4

4 National Council on Climate Change(2010),”Indonesia’s greenhouse gas abatement cost curve”

10,553

6,550

4,5413,611

2,486 2,3741,307 1,131 883 835

0

2,000

4,000

6,000

8,000

10,000

12,000

GHGemissions(MtCO2e)

10

Chart 3-4: BaU Scenario of GHG Emissions in Indonesia

Note: Only direct emissions from each sector added.Source: National Council on Climate Change (2010), “Indonesia’s GHG Abatement Cost Curve”

The National Council on Climate Change forecasts an increase in coal dependency in theelectric power sector to 66 percent under the BaU scenario, due to rising petroleum prices andother causes (Chart 3-5). Increased coal power means an increased emission factor for electricity.As a result, and in conjunction with an increase in domestic demand for electricity, it is forecastthat CO2 emissions will increase greatly by 2030, rising approximately sevenfold from 2005’semissions.5 Partly in order to avoid such circumstances, increasing the share of renewableenergy within Indonesia’s power-source structure is a pressing need.

5 National Council on Climate Change(2010),”Indonesia’s greenhouse gas abatement cost curve”

ConstructionCement

Oil, gas

LULUCF

Transport

Electricity

Peat

Agriculture

11

Chart 3-5: Forecasts of Increases in GHG Emissions Due to Growth in Demand for Electricity[Trends in Power Generated (Forecast)]

Unit: TWh[Trends in GHG Emissions (Forecast)]

Unit: Mt-CO2e

Source: National Council on Climate Change(2010),”Indonesia’s greenhouse gas abatement cost curve”

In relation to the promotion of renewable energy use, Presidential Regulation No.5/2006mentions optimization of energy composition by 2025 as a policy target. Broken down byenergy source, it calls for oil to account for no more than 20 percent of all sources, natural gasfor 30 percent or more, coal 33 percent or more, and renewable energy including geothermal for25 percent or more.In 2009 the central government was reorganized as well, establishing within the MEMR, whichuntil then had had jurisdiction over the energy sector, the Directorate General of New andRenewable Energy and Energy Conservation as a separate section from that responsible for theelectric-power business in general, to promote new energy and energy conservation further. Thisdirectorate general is advancing the drafting of policy proactively through efforts includingcoming up with the Vision 25/25 calling for a 25 percent share of primary energy accounted forby new and renewable energy in 2025 and furthermore studying the Clean Energy Initiative toadvance this vision.

Chart 3-6: Policy Objectives on Renewable Energy

Policy ObjectivesNational Energy Policy Optimization of the energy structure. Increasing the share of renewable

energy (including a share of 5% or more for geothermal) to 25% by 2025.Vision 25/25 Raising the share of primary energy accounted for by new and renewable

energy to 25% by 2025

OtherrenewableenergyFossil fuels(other than coal)

Geothermal powergeneration

Oil

Gas

Coal

Coal fuel

12

3.3 Climate change policies in Indonesia

Recognizing that GHG emissions in the country will substantially increase in future if thecurrent economic growth and energy consumption are maintained without any measures, theIndonesian government has actively been promoting climate change policies since theratification of the Framework Convention on Climate Change in 1994.

The country acted as the chair in the 13th Session of the Conference of the Parties to the UnitedNations Framework Convention on Climate Change (COP13) in 2007. It also announced anational mid-term target for emission reduction to 26% below the BaU level (or 41% underinternational support) by 2020 in the G20 Summit in September 2009. These activities areparticularly visible among ASEAN countries.

Furthermore, the Bilateral Document on the Joint Crediting Mechanism (JCM) between Japanand Indonesia was signed in 2013(6). The document specifies, among others, creation of a jointcommittee for system management and mutual exploitation of the emissions reduction orabsorption targets for the parties in order to achieve the total target. Indonesia has establishedthe JCM Secretariat based on the document for examination of MRV methodology and otherissues.

6 Press release from the Ministry of the Environment (http://www.env.go.jp/press/press.php?serial=17077)

13

Chart 3-7 lists Indonesia’s main efforts to address climate change, in chronological order.

Chart 3-7: Development of Indonesia’s Main Climate-Change Policies7

As befits the cross-functional nature of the issue, climate-change measures are being promotedjointly by the following government offices: the Ministry of Environment, the MEMR, theMinistry of Finance, the Ministry of Agriculture, the Ministry of Forestry, the Ministry ofTransportation, the Department of Public Works, and the National Development PlanningAgency. In particular, the National Development Planning Agency coordinates betweengovernment offices and oversees the whole of related measures.

The National Council on Climate Change, chaired by the president, was established in 2008,which develops national frameworks for policy and strategy on climate change undercooperation of relevant agencies.

7 Based on the Ministry of the Environment's New Mechanism Information Platform and other sources.

Year Summary of Efforts1994 Ratification of the Framework Convention on Climate Change1999 First national report formulated2003 Setting up of the National Commission for Climate Change2004 Ratification of the Kyoto Protocol (as a Non-Annex I Party)2005 Fourth Mid-Term National Development Plan (RPJMN2004-2009)

established2007 - Law No. 17 on Long-Term National Development Plan

(RPJMN2005-2025) established- National Development Plan: Measures against climate change

established2008 National Council on Climate Change (NCCC) established2009 - Indonesia Climate Change Trust Fund (ICCTF) established

- Indonesia Climate Change Sectorial Roadmap (ICCSR)- The national emission reduction target of 26% below the BaU level (or

41% under international support) by 2020 announced at G20 Summit andCOP15

2010 - Fifth Mid-Term National Development Plan (RPJMN 2010 - 2014)established

- Second country-by-country report finalized2011 National Action Plan for Reducing Greenhouse Gas Emissions (RAN-GRK)

established2013 The bilateral document for the JCM signed with 12 countries

14

The National Development Plan designed by the National Development Planning Agency firstdefined climate change as an agenda of high priority in the Fourth Mid-Term NationalDevelopment Plan (RPJMN2004-2009) in 2005.

Subsequently, the Long-Term National Development Plan 2005 - 2025, established by law in2007, included global warming and climate change as an item to be considered for orientationand priority in the overall vision of development until 2025. Conversion of energy source fromoil to gas and coal and the importance of renewable energy development, mentioned earlier, arereferred to in the Law.

The medium-term national development plan announced in 2007,8 “Addressing ClimateChange,” referred to commonly as the “Yellow Book,” both reinforced the fourth Mid-termNational Development Plan (RPJMN 2004-2009) and organized information in anticipation ofits being reflected in the fifth Mid-Term National Development Plan (RPJMN 2010-2014). Inthis document, the National Development Planning Agency identifies climate-change adaptationand mitigation programs by the government offices responsible for each field. It calls forimplementing about 549 climate-change projects over the coming five years and notes thatfunding of approximately USD 897 million would be required for their implementation.10

Spurred by this, in 2009 the Indonesia Climate Change Trust Fund was established. This fundwas established to manage funds such as aid funds from donor countries to provide funding aidfor implementation of climate-change programs and projects.11

In 2010, the new fifth Mid-Term National Development Plan was established, identifyingclimate change as one of the 10 issues that the country needed to face and one of 11 priorityfields.

Chart 3-8: Characteristics of the Mid-Term National Development PlansCharacteristics of the Mid-Term NationalDevelopment Plan: Addressing Climate Change

Characteristics of the Fifth Mid-Term NationalDevelopment Plan

- Implementation of approx. 54 climate-changeprojects over five years

- Identifies and sorts adaptation and mitigationprojects by field

- Addresses climate change as a key issue and apriority field

- Calls for use of 2,000 MW of renewableenergy in 2012 and 5,000 MW in 2014

8 Later revised in 20089 Twenty-six adaptation programs, 18 mitigation programs, and eight programs combining adaptation

and mitigation10 IGES (2008), “Study on Local Actions in Asia, contributing to climate change mitigation and

alternative financial mechanism.”11 See ICCTF website (http://www.icctf.or.id/).

15

*1: Domestic effort only; *2: Achieved with international cooperation

The National Action Plan established according to the Presidential Decree No.61 issued in 2011announces an emission reduction target by 2020 of 26% below the BaU level by its own effort,or 41% under international support.

The National Action Plan is a part of the Mid-Term National Development Plan (RPJMN) andthe Long-Term National Development Plan (RPJPN), and reflects particularly the agenda for2010 - 2014 in the latter. The National Action Plan identifies six principal sectors: agriculture,forest/peatland, energy, transport, industry and waste management.

Chart 3-9：Emission reductions Targets for 2020, by Field12

National Targets -26%*1 -15%*2

Field Reductions Targets(Gt-CO2)

Program Content

Forestry and peat 0.672 0.367 Control of forest fires, control of water resources inpeat land, forest and soil regeneration, control offorests and unlawful harvesting of timber, avoidingharvesting of forests, community development

Wastes 0.048 0.030 Garbage processing facility development, “threeR’s” and sewage systems in urban areas

Agriculture 0.008 0.003 Introduction of low-carbon rice varieties, improvedirrigation efficiency, use of organic agriculturalmethods

Industry 0.001 0.004 Energy efficiency, renewable energy developmentEnergy, transport 0.038 0.018 Biofuels development and use, improvements to

fuel efficiency, public transportation, managementof demand for energy, renewable energy, energyefficiency

Total 0.767 0.422 -

The Indonesian government emphasizes the following three aspects of the plan:(1) The welfare of the nation is given the top priority without impairing economic growth.

Special consideration is given to flexible dealing with energy demand and the stablesupply of food.

(2) The framework for sustainable development takes protection of the environment, thepoverty group and vulnerable communities into account.

(3) Reduction of GHG emissions and supportive actions for the policy framework areimportant elements of the plan.

12 Excerpst from BAPPENAS (2011), "Indonesia's National Mitigation Action: Paving the Way Towards NAMAs(Input to OECD/IEA Seminar on MRV and carbon markets, a CCXG and Global Forum event)".

16

The Local Action Plan for GHG Emission Reduction (RAD-GRK), based on the NationalAction Plan but taking local situations into consideration, would be established by September2012. In addition to the national reduction targets by category, the RAD-GRK would define thereduction targets for individual states by category.

Each state has developed respective RAD-GRK to calculate the emissions and to definereduction targets by category, but they are still unsatisfactory in terms of specificity andaccuracy.

17

Chapter 4 Market for the Tribrid Technology and Its Potential for Diffusion

4.1 State of communication service penetration in Indonesia

Indonesia is progressing internet service (especially broadband) penetration. The governmentmade in November 2006 an announcement for the Palapa Ring Plan, to lay total lengths of35,280 km of submarine optical cable and 21,807 km of land optical cable to form a network ofseven rings by the end of 2010 as the foundation infrastructure to connect every part of thecountry. Although the plan has been considerably delayed, the work aiming for completion ofone part by 2015 has started.

The Ministry of Communications and Information Technology had predicted that the Internetuser number will reach 80 million by 2010, though the actual number of users on a broadbandcontract is about 3.9 million as of the end of 2013. Meanwhile, the cellular phone user numberhas reached 324 million: an overwhelming number in light of the 28 million users on a fixedphone (PSTN) contract. The mainstream of fixed phone services is on a contract-based fixedwireless access system (FWA), reflecting the geographical nature of Indonesia, whose territorystretches over numerous islands. The 4G LTE service will be offered from 2014 by the threecompanies with the highest number of contracts.

Chart 4-1: Primary communication service indicatorsDec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2018

(prediction)Population size (1,000) 242,968 245,613 248,216 250,800 262,900Household number (1,000) 59,920 60,580 61,260 61,940 65,450GDP ($ million) 709,190 845,930 876,720 868,350 1,721,000Mobile phone users (1,000) 199,169 246,610 278,906 324,081 433,977Mobile phone population penetrationratio 82.0% 100.4% 112.4% 129.2% 165.1%

Users on prepaid contract (1,000) 195,532 242,655 275,517 320,062 426,970MOU (minute/month) 264 258 278 263 267ARPU (/month) $4.37 $3.94 $3.59 $3.12 $3.34Users on fixed phone contract (1,000) 39,469 38,075 38,927 28,345 24,361Fixed phone population penetrationratio 16.20% 15.50% 15.70% 11.30% 9.30%

Users on broadband contract* (1,000) 2,001 2,517 3,154 3,904 9,136Broadband population penetrationratio 0.80% 1.00% 1.30% 1.60% 3.50%

Users on CATV contract (1,000) 207 229 318 362 -* Line capable of at least 128 kbps

Source: “Users on CATV contract” from WBIS; otherwise Pyramid Research

18

Chart 4-2: Changes in population and mobile users in Indonesia

4.2 Status of the cellular phone market

(1) Summary of main cellular service operators

i. PT Telkomsel (Telkomsel)A subsidiary of the top fixed phone service provider Telkom Indonesia; a major playerin cellular services, boasting a share of 45% in the cellular communication market; amember of the Singapore Telecom-lead global alliance, Bridge Alliance

• Sales turnover in December 2013 quarterCellular phone income: 32,138 billion rupiahs (¥286 billion)Group combined: 82,967 billion rupiahs (¥738.4 billion)

• Net profit in December 2013 quarterGroup combined: 20,290 billion rupiahs (¥180.6 billion)

• Main investors: Telkom 65% and Singapore Telecom 35%

ii. PT Indosat (Indosat)Has the second largest share of users; under the umbrella of Ooredoo Qatar(previously Qatar Telecom); a member of the NTT DoCoMo-lead global alliance,Conexus Mobile Alliance

• Sales turnover in December 2013 quarterCellular phone income: 19,374.6 billion rupiahs (¥172.5 billion)Group combined: 23,855.3 billion rupiahs (¥212.3 billion)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2010年末 2011年末 2012年末 2013年末 2018年末

（予想）

[千]

人口

携帯電話加入数

プリペイド加入数

Population sizeMobile phone usersUsers on prepaidcontract

[Thousand]

Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2018(prediction)

19

• Net profit in December 2013 quarterGroup combined: −2,666.5 billion rupiahs (−¥23.7 billion)

• Main investors:Qatar Ooredoo Asia 65%; Indonesian Government 14.29% (December 2013)

iii. PT XL Axiata Tbk (XL)Founded in 1996; a member of the Malaysian Axiata Group and of Celcom-centeredglobal alliance AMI; changed company name from Excelcomindo to XL Axiata Tbk inDecember 2009; in September 2013, an agreement was reached with Axis Indonesia,the company holding the fifth largest share in the cellular communication market, forpurchase of 95% of stock at US$ 800,006,500; Indonesian Government approved ofthis agreement in March 2014

• Sales turnover in December 2013 quarter: 21,265 billion rupiahs (¥189.3 billion)• Net profit in December 2013 quarter: 1,032.8 billion rupiahs (¥9.2 billion)• Main investors: Malaysian Axiata Group 66.69 and Etisalat (UAE) 4.2%

(December 2013)

iv. Hutchison 3 Indonesia (previously HCPT)Has been a member of Hong Kong Hutchison Group since March 2005; in February2013, the 35% of its stocks then owned by the Thai firm Charoen Popkhand waspurchased by the Indonesian investor Garibardei Thohir Investment Group

• Sales turnover in December 2013 quarter: Hutchison Asia Telecoms (Indonesia,Vietnam and Sri Lanka)HK$6.3 billion (¥83.5 billion)

• Net profit in December 2013 quarter: Not published• Main investors: Hong Kong Hutchison Asia Telecommunications 65% and

Garibaldi Thohir Investment Group 35% (February 2013)

v. Axis Indonesia (previously Natrindo Telepon Seluler)Started service as a GSM operator in April 2001; merged into XL Axiata in 2014

• Sales turnover in December 2013 quarter:Cellular business: 28.9 billion SAR (¥793.6 billion)Combined with STC: 45.6 billion SAR (¥1,252.5 billion)

• Net profit in December 2013 quarter: Not publishedCombined with STC: 9.9 billion SAR (¥271.9 billion)

• Main investors:Saudi Arabia STC 80.1%; Malaysia Maxis 14.9%; Indonesia PTHI 5% (April

2011)

20

(51% investment on NTS (predecessor of Axis) by STC since September 2007)

vi. Telecom PT Smartfren (previously Mobile-8)Is a CDMA service operator (under the brand name FREN); started an internationalroaming service partnership with KDDI in October 2004; announced a merger withanother CDMA service operator Smart Telecom in March 2010; changed companyname to Smartfren (under the brand name SmartFren) in March 2011; let its debtballoon to 12,620 billion rupiahs (¥112.3 million) as of March 31, 2014; currentlyplanning issuing of convertible (corporate) bonds worth 4,000 billion rupiahs (approx.¥35.6 billion) to repay debt coming due in 2014 and 2015.

• Sales turnover in December 2013 quarter: 2,428.9 billion rupiahs (¥21.6 billion)• Net profit in December 2013 quarter: −2,534.5 billion rupiahs (−¥22.6 billion)• Main investors: PT Wahana Inti Nusantara 32.8%; PT Global Nusa Data 24.8%; PT

Bali MediaTelekomunikasi 24.1% and Masyarakat 18.3%(December 2013)

•

21

(2) Cellular service market status

Chart 4-3: Changes in user numbers for respective service operators

OperatorChanges in user number Share

Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2013Telkomsel 94,001,000 107,017,000 125,146,000 131,513,000 42.40%

GSM900/1800 83,101,000 93,032,890 103,485,810 102,930,803WCDMA2100 10,900,000 13,984,110 21,660,190 28,582,197

Indosat 40,650,000 51,700,000 58,500,000 59,600,000 19.20%GSM900/1800 35,000,000 44,800,000 49,794,380 49,961,100WCDMA2100 5,650,000 6,900,000 8,705,620 9,638,900

XL Axiata 40,400,000 46,400,000 45,755,000 60,577,000 19.50%GSM900/1800 38,000,000 43,500,000 41,755,000 54,077,000WCDMA2100 2,400,000 2,900,000 4,000,000 6,500,000

Hutchison 3 Indonesia 15,500,000 20,000,000 26,400,000 35,200,000 11.30%GSM1800 14,100,000 18,213,480 24,200,000 32,068,000WCDMA2100 1,400,000 1,786,520 2,200,000 3,132,000

Axis Indonesia 8,685,600 16,000,000 14,600,000 11,600,000 3.70%GSM1800 6,985,600 14,040,000 12,540,000 9,520,000WCDMA2100 1,700,000 1,960,000 2,060,000 2,080,000

Smartfren Telecom 4,322,700 7,600,000 9,900,000 11,300,000 3.60%CDMA850 2,272,700 7,600,000 9,900,000 11,300,000CDMA1900

2,050,000 0 0 0

Sampoerna CDMA450 290,000 379,460 406,000 415,000 0.10%Total 203,849,300 249,096,460 280,707,000 310,205,000 100%

Source: Informa Telecoms and Media, World Cellular Information Service Database

22

Chart 4-4: Changes in user numbers for respective service operators (Graph)

(3) Overview of fixed communication service operators (for information)

i. PT Telekomnikasi Indonesia (Telkom)Was a state owned enterprise; corporatized in 1995 to implement IPO; followingcommunication deregulation by the new Telecommunication Law (Law No. 36 of1999, came into force in September 2000), entered international communicationbusiness; status changed from a service operating government organization (OperatingAgency) to a general licensed operator following a revision of TelecommunicationLaw (September 2000); has over 90% of fixed phone users; one of its subsidiary isTelkomsel; the group itself is a general service operator

• Sales turnover in December 2013 quarterFixed phone income: 9,701 billion rupiahs (¥86.3 billion)Group combined: 82,967 billion rupiahs (¥738.4 billion)

• Net profit in December 2013 quarterGroup combined: 20,290,000,000,000 rupiahs (¥180,600,000,000)

• Main investors: Indonesian Government 53.24% (December 2011)

ii. PT Indosat (Indosat)Was founded in 1967 as an international communication company; was operated as aservice operating government organization (Operating Agency) providing internationalservices; entered domestic communication business following communicationderegulation under the new Telecommunication Law (Law No. 36 of 1999, came into

0

20

40

60

80

100

120

140

2010.12 2011.12 2012.12 2013.12

[百万加入]

Telkomsel

Indosat

XLAxiata

Hutchison3IndonesiaSmartfrenTelecom

Sampoerna

[Million users]

Dec 2010 Dec 2011 Dec 2012 Dec 2013

23

force in September 2000); became a general licensed operator following a revision ofthe Telecommunication Law (September 2000); implemented IPO in 1994; hasprovided fixed voice call service (FWA on CDMA) since 2004; obtained WiMAXlicense (2.3 GHz) in July 2009

• Sales turnover in December 2013 quarterFixed phone income: 3,265.8 billion rupiahs (¥29.1 billion)Group combined: 23,855.3 billion rupiahs (¥212.3 billion)

• Net profit in December 2013 quarterGroup combined: −2,666.5 billion rupiahs (−¥23.7 billion)

• Main investors:Qatar Ooredoo 65% and Indonesia Government 14.29% (December 2013)

iii. PT Bakrie TelecomFounded as PT Ratelindo: a jointly venture company funded by Telkom and PT Bakrie& Brothers (local communications device manufacturer) in 1993; changed companyname to the current name following the strengthened investment by PT Bakrie &Brothers (to 71.15%) in 2003; in June 2010 a subsidiary PT BakrieConnectivity(BConnect) started broadband service (EV-DO; maximum download 3.1 Mbps;maximum upload 1.8 Mbps); Rev. B phase 2 trial started in November 2011; in August2011, bought PT RekaJasa Akses (REJA), which owned a national 4G networklicense; has a plan to roll out a mobile broadband network nationally using thefrequency owned by REJA

• Sales turnover in December 2013 quarter: 2,072.4 billion rupiahs (¥18.4 billion)• Net profit in December 2013 quarter: −2,645.6 billion rupiahs

(−¥23.5 billion)

• Main investors: PT Bakrie & Brothers Tbk 16.3%, Raiffeisen Bank InernationalAG 7.2%, PT Bakrie Global Ventura 6.9% (March 2012)

iv. PT AT&T Global Network ServicesAT&T Indonesia; obtained Multimedia Services Operator (MSO) on May 27, 2011:the first overseas communication service operator to do so; offers VPN (VirtualPrivate Network) and other data communications services to multinationalcorporations, etc.

• Sales turnover in December 2013 quarter: Not published• Net profit in December 2013 quarter: Not published• Main investors: AT&T 95% (Overseas investment to data communications

system service is limited to up to 95%)

24

4.3 Status of regulatory framework

In Indonesia, the decisions concerning communication and broadcasting policies are made bythe Ministry of Communications and Information Technology, while regulatory oversight is theresponsibility of the Indonesian Telecommunications Regulatory Body. It was established inJanuary 2004 by the Order of Minister of Transport and Communications (No. KM31/2003),with seven members: two governmental members and five civilian members. Although theDirector General of the Directorate General of Post and Telecommunication serves as the Body,this organization is deemed an interim body until the establishment of an official independentregulatory body. Its members are reviewed every three years.

The process of entering communications services sector requires a license, for either a fixed ormobile service. For controlling overseas investment, a Presidential Regulation was issued in2007, though the investments made prior are not controlled by the current regulation.

Chart 4-5: Regulatory framework concerning communications and broadcasting businessPolicy decisionmaking body

Communications Ministry of Communications and Information Technology (MCIT)Broadcasting Ministry of Communications and Information Technology (MCIT)

Regulatoryoversightbodies

Communications Indonesian Telecommunications Regulatory Body (BRTI)Broadcasting Indonesia Broadcasting Commission (KPI)

Basic laws Communications 1999 Telecommunication Law (Law No. 36 of 1999) andInformation and Electronic Transactions Law (Law No. 11 of2008)

Broadcasting 2002 Revised Broadcasting Law (Law no. 32 of 2002)Process toenter market

Fixed Exists; license basedMobile Exist; license based

Regulation concerning overseasinvestment

Fixed phone 49%; cellular and/or satellite phone 65%; datacommunication 95%; multimedia services 49%(Presidential Regulation No. 77/2007)

Airwavemanagementsystem

Managing body Ministry of Communications and Information Technology (MCIT);the licensing system pursuant to a 2000 Presidential Regulation(No. 53; Article 18, Section 3)

Method of frequencyallocation

By comparative assessment or auction

Frequency trading Not allowedUniversalservice funds

Status of preparation Preparation completeStatus of operation Operating (Funds for business year FY2009: 1,600 billion rupiahs)

Sources: Research Institute of Telecommunications and Economics, Foundation for MultiMedia Communications,“Overseas communication broadcasting online information service”; Ministry of Internal Affairs andCommunications “State of World Information and Communication”; Law Business Research, “Getting the Dealthrough: Telecoms and Media 2014”; and others

25

4.4 Potential for the Tribrid technology diffusion

(1) An overview of the Tribrid technology

The Tribrid technology, the subject of this project, is technology to maximize emissionreduction effects by comprehensive control and optimization of PV, grid electricity, electricityfrom diesel generator and electricity charged into rechargeable battery as seen in Chart 4-6. Thistechnology, as shown in Chart 4-6, is a property of KDDI, who has a trademark registered to,and has a patent pending for it.

Chart 4-6: Conceptual image of the Tribrid technology

Field trials have been under way across Japan since December 2009. So far, there have beensome 100 Tribrid BTSs installed throughout the country (Charts 4-7 and 4-8). Furthermore, astudy was conducted in FY2011 on improving the technology for a coordinated control of PV,rechargeable battery and generator, as a part of Ministry of Internal Affairs and Communications’“R&D for Strengthening Disaster Resilience of Information Communication Networks (R&D ofdisaster resilient network management control technology to secure communication even in alarge-scale disaster)”.

ü Technology that is the property of KDDI: a fusion ofPV powered battery charging and discharging (CDC)control technology and generator fuel consumptioncontrol technology

ü This technology can reduce per-unit fuelconsumption to less than a half of the existing system(with further reduction possible depending on thenumber of sunlight hours)

ü This technology can also meet the requirements ofthe Business Continuity Plan (BCP) and can make acontribution to leveling through peak shift.

l Trademark registered (July 30, 2010; Trademarkregistration number: 5341977)

l Patent application lodged (Application number:2013-200279)

l Patent application 2011-209403 (Sept. 26, 2011)l Electricity control unit, Base Transceiver Station

(BTS), electricity control system, electricity controlmethod, electricity control program

l Patent application 2011-253979 (Nov. 21, 2011)l Electricity control unit, BTS, electricity control

method, and program

Technology researchedPV 1.4 kW

Power

Emergency generator 5kW

Battery 7.5 kW

Rectifier

Communications

26

Chart 4-7: Field trial overview

Chart 4-8: Number of field trial BTSs

(2) Overview of technology and features

The Tribrid technology is a fusion of PV-powered battery charging and discharging controltechnology and generator fuel consumption control technology. The Tribrid will make longhours of electricity supply to BTS possible even in an off-Grid area or an area that suffers

Started in December2009 at 11 BTS sites

Joetsu City, Niigata (Site 1)

Joetsu City, Niigata (Site 2)

Niigata City, Niigata

Sano City, Tochigi

Imabari City, Ehime

KonanCity, Kochi

Ashikaga City,Tochigi

Tsukubamirai City, Ibaraki

Hidaka City,Saitama

Itoman City,Okinawa

Higashi Village, Okinawa

Trial had expanded to 100 BTS sites nationwide(by March 31, 2013)

Region BTSnumber

Hokkaido 0Tohoku 3Kanto 34

Hokuriku 1Tokai 1Kinki 29

Shikoku 18Chugoku 1Kyushu 11

Okinawa 2Total 100

27

frequent power outage. In addition, this technology can reduce per-unit fuel consumption to lessthan a half of the existing system. Furthermore, it technology can also meet the requirements ofthe Business Continuity Plan (BCP) and can make a contribution to leveling through peak shift.

Below is a list of the features of the Tribrid technology identified through Japanese field trials:

· Generator is stopped while PV panel is generating electricity· If the forecast is for fine weather the next day, the generator is not used to fully charge the

rechargeable battery (to leave room for PV to fully charge it next day)· Generator fuel consumption aware: fine-tuned to an efficient output· DC/DC connection with PV to realize efficient energy saving, without DC/AC or AC/DC

conversion loss· The simple mechanism of only controlling voltage of rectifier, the system is low cost and

possible to retrofit· Utilizing night electricity using rechargeable battery, the system makes a reduced price

and peak shift a reality, as well as checks battery’s normal operation

Chart 4-9 shows a schematic of the generator control using rechargeable battery voltagethreshold, used in the Tribrid technology.

Chart 4-9: Generator control using rechargeable battery voltage threshold in the Tribridtechnology

Bat

tery

volta

ge Power outage

Threshold(Lowest

operationalvalue)

Short periodtrial operationof generator

Generator

operating

Battery voltage drops toor below threshold.Generator starts to

charge.

PV Forecast for fine weathertomorrow. Charging stops

before reaching fullcharge

Battery voltage drops toor below threshold.Generator starts to

charge.

Intermittent generator operation, resulting in fuelsaving and longer operational hours

Time

28

What motivated KDDI to refine the Tribrid technology for BCP was the 3/11 disaster (GreatEast Japan Earthquake). This energy-saving technology is also applicable to the BCP, which wasdeveloped from the necessity to secure an energy source for BTSs in prolonged power outages.It is expected to be useful also in Indonesia for off-grid areas or the areas that suffer frequentpower outage (Chart 4-10).

Chart 4-10: The Tribrid technology in relation to BCP

Chart 4-11 shows the trial system configuration at development stage. The existing method isshown in Chart 4-12 to make the differences clearly visible.

Chart 4-11 Trial system configurations at development stage

電力会社

整流器

AC/DC2kW

蓄電池BATT7.5kWh

通信設備

TX/RX750W

システム電圧

DC -48V

AC.100V

PV1.4kW 太陽電池

非常用発電機

G5kW

リモート制御

起動制御

過放電防止リレー

MPPT 機能付きDC/DC 1.5kW

ローカル制御

停電

750W

1250W

2000W

750W

650W

1400W

2100W

（変換損）

開発設備

Collapse

Poweroutage

Large-scale disaster occurs

CollapseRechargeabl

e battery

Safe and secure even attime of disaster

PV cellEmergencygenerator

Major power outageOptical repeater station orBTS

When combined, operational hoursextended two-fold

Remote control

Local control

Powercompany

Rectifier Systemvoltage

MPPT

PV cell

Developmentalfacility

CommunicationsfacilityOver-discharge

prevention relay

Rechargeablebattery

Emergency generator

Startup control (Conversion loss)

Poweroutage

29

Chart 4-12: Existing system configuration

When a power outage strikes, the communications facility first uses the rechargeable battery andPV cell as a power source, and then only the rechargeable battery when voltage from the PV celldrops. This results in a gradual voltage decline of the rechargeable battery. A threshold is set forthe voltage of the rechargeable battery; and if the voltage drops below the threshold, thegenerator starts up. The generator supplies electricity to the communications facility whilesupplying electricity to charge the rechargeable battery via the rectifier. As the generatorsupplies electricity; the rechargeable battery is charged; and its voltage gradually increases.There is also an upper threshold for the voltage of the rechargeable battery: when the voltage israised above this threshold; the generator stops.

Meanwhile, in the existing method: the generator starts up immediately after a power outage,and supplies electricity for operation of the communications facility. During daylight hours, thegenerator does not start up as the electricity is obtained from PV cell; therefore there is no dropin voltage of the rechargeable battery. (Refer to Chart 4-13)

Chart 4-13: Relationship between rechargeable battery voltage and start/stop of generator

With the Tribrid approach, the generator starts up when voltage drops to or below the thresholdand supplies two flows of electricity: one to operate the communications facility and the other to

停電発生

太陽電池電力

発電機停止電圧

発電機起動電圧

朝昼夕夜朝昼夕夜

発電機電力

システム電圧 ※ 動作のイメージ図

Rectifier

Power companyPower outage Nominal voltage

Over-discharge prevention

Communicationfacility (load)

Emergency generator

Voltage to stopgeneratorVoltage tostart up

System voltage

Poweroutage PV electricity

Generatorelectricity

* Visual presentation of systemoperation

Morning Day Evening Night Morning Day Evening Night

30

charge the rechargeable battery. It operates at approx. 2.1 kW, meaning a low fuel consumptionof 0.52 L/kWh (or 0.52 L/kWh × 2 kWh = 1.04 L of fuel consumed). The generator stops as thesystem (rechargeable battery) voltage increases. On the other hand, in the existing method thegenerator starts up immediately after a power outage occurs to supply electricity for operation ofthe communications facility. The generator operates at approx. 1.0 kW, with fuel consumptionof 0.82 L/kWh.

Consequently, the Tribrid approach gives better fuel efficiency and improves fuel costs. (Referto Chart 4-14)

Chart 4-14: Generator fuel consumption rate (fuel required to generate 1 kWh of electricity)

Source: Material from a generator manufacturer

(3) Concept of the Tribrid technology introduction

Grid electricity and diesel electric power generation sourced electricity will be replaced by PVgenerated electricity whenever possible. A diesel generator is used as a backup power source.Furthermore, respective devices (i.e. rechargeable battery, PV panel and generator) arefine-tuned according to their respective specifications, electricity supply status and siteenvironment to give optimal performance for the cellular phone service operator (the Tribridtechnology). Thus, stabilization of electricity supply and reduction of emissions of GHG fromgrid power source and diesel electricity generation can be achieved. A large-scale introductionto Indonesia, with its high level of solar radiation is expected to bring a considerable level ofGHG reduction.

(For information)Fuel consumption by a 5 kW (50 Hz) diesel generator

Fuel consumption L/kWh

0.82 L/kWh at 1 kW output

0.35 L/kWh at 5 kW output

0.52 L/kWh at 2.1 kW output

31

Chart 4-15: Concept of introductionCurrent: Grid connected area

In addition to the electricity supplied by the gridand from rechargeable battery, diesel electricpower generation is used as a backup powersource

Current: Off-grid area

Electricity is supplied from dieselelectric power generation andrechargeable battery.

Solar cells are introduced in BTSs to replace the grid and diesel generators partially ortotally. The Tribrid technology optimizes the allocation of the power sources (solar, grid,diesel and battery) to the equipment, which is expected to reduce GHG emissions.

(4) Difference from other relevant products and challenges for introduction

Past feasibility studies relevant to this project were the “Report on Promoting Electrification toUn-electrified Areas of Indonesia by Renewable Energy Hybrid System (FY2012, METI) and“Solar Power System at Off-grid Cell Towers” (FY2013, MOE). These studies looked intohybrid technologies as well as off-grid areas. The subject of this project, however, is the Tribrid,the property of KDDI, a fusion of PV powered battery charging and discharging controltechnology and generator fuel consumption control technology; and the aim of the roject is towidely diffuse this technology.

As the project aims to widely diffuse this technology, the study targeted not only off-grid areasbut grid connected areas as well. KDDI’s Tribrid technology has, as previously described, beensuccessfully introduced to numerous facilities across Japan (in other words, grid connected

After

CommercialelectricityAC

DC

Rectifier

DC

DC

Rectifier

ACGenerator

Wirelessequipment

GeneratorRechargeabl

e battery ChargeSupply

Rechargeable battery

Wirelessequipment

DCAC

ChargeSupply


DC

DC

Rectifier

AC

Generator

Wirelessequipment

Rechargeable battery Charge

Supply

PV panel (6–8 kWh)

DC/DCconverter

Tribridcontroller

32

areas). There are also several BTS sites with this technology that assumed a similar off-gridscenario. In other words, the technology already has a track record in Japan regardless ofoff-grid or grid connected areas.

Furthermore, the study examined one of the main system components: rechargeable batteries.Taking into consideration such matters as environmental impact after disposal, maintenancecosts, longevity and cost of disposal, introduction of not only lithium ion batteries but alsomolten salt batteries was considered. A molten salt electrolyte battery is a type of secondarybattery that uses only molten salt (also called liquid ion) as the electrolytic solution. Currently,Sumitomo Electric Industries is planning to release a product with this technology by 2018.Lithium ion batteries will require more capacity to compensate for degradation when used in ahot environment like that of Indonesia. However, the molten salt battery suffers from lessdegradation in a hot environment and thus requires a smaller initial capacity, which promises thepotential to cut costs.

Following are the three main special features:i. Superior operational trait in hot environment (Safety)ii. Superior life cycle (Longevity)iii. Superior float charge trait (Energy saving)

Chart 4-16: Structure of molten salt battery

An important point to note: the only dangerous state with a molten salt battery is when it isovercharged and abnormally hot; in comparison to Li ion battery, a molten salt battery is safe in

Na ion moves fromanode into cathodewhen being charged,and moves fromcathode into anodewhen discharging

Cross section of batterystructure

Molten salt(incombustible

liquid)

Cathode substance

Cathode currentcollector

Anode substance(NaCrO2)

Separator

Anode currentcollector

Discharge

Charge

33

a wide range of temperatures and state of charge (SOC) conditions. (Refer to Chart 4-17)

Chart 4-17: Comparison of safety between molten salt battery and Li ion battery

Molten salt battery

Danger range

Tem

pera

ture

Withinoperational range

Outsideoperational range

Range of degradation

Recommendedoperational range

Safety range

Li ion battery

LIB dangerrange

Tem

pera

ture

Withinoperational range

Outsideoperational range

Range of degradation

Recommendedoperational range

Safety range

LIB danger range MSB danger range

34

Chapter 5 Research Concerning the Trial Sites

5.1 Research concerning the target field

Introduction of KDDI’s Tribrid technology for the BTSs in either off-grid or grid connectedareas of Indonesia; business based expansion of the technology and maximizing thetechnology’s CO2 emission reduction effects: to aid the research and examination for thesepurposes, on-site research trips were made to Indonesia, in addition to the Japan-based study ofdocuments and literature review.

(1) Overview of the first research trip to Indonesia· Date of the research trip: October 5 – 12, 2014· Main parties visited:

▪ Packet Systems Indonesia▪ Protelindo▪ The Embassy of Japan in Indonesia▪ Tower Bersama Infrastructure (TBI)▪ Mitra Tekno Kreasi (MTK)

· Summary of research outcomesi. Visited the Embassy of Japan in Indonesia to confirm Indonesia’s policy of

cooperationii. On-site inspection of 7 BTS sites with assistance from Huawei Services to review

actual candidates for trial BTSsiii. Offered the invitation to attend a seminar in Japan: fine-tuning of schedule with the

local partner firmsiv. Visited to numerous local firms including the tower lease firm and tower

construction firm; where meetings are held to discuss and examine mattersconcerning future business potential, such as the potential of diffusion for thistechnology; specific project planning and strategy, including assessment of theproject’s business potential; finance to make it a reality, etc., for better investmentenvironment, premium measures, and so forth

(2) Overview of the second research trip to Indonesia· Date of the research trip: October 20 – 23, 2014· Main parties visited:

▪ Local MRV experts (3 experts at 2 companies)▪ The Embassy of Japan in Indonesia

· Summary of research outcomes

35

i. Our approach to formulating an MRV methodology was explained to local MRVexperts, who were invited to share their views on how to make improvements fromthe local operator’s perspective. In respect to the criteria in the Joint CreditingMechanism Guidelines for Developing Proposed Methodology, their views onmethodologies: to be possible for local operators to implement on an ongoing basisand particulars to be monitored, etc., were appreciated

ii. Visited the Embassy of Japan in Indonesia for briefing on MRV methodologies

(3) Overview of the third research trip to Indonesia· Date of the research trip: December 14 – 21, 2014· Main parties visited:

▪ Huawei Services▪ Indosat▪ JCM Secretariat in Indonesian Government▪ The Embassy of Japan in Indonesia

· Summary of research outcomesi. Several meetings with Huawei Services were held for discussing specific matters

concerning the selection of BTS trial candidate sites; where an agreement onselection criteria was successfully reached

ii. Visited to Indosat, which has the third highest share in Indonesia’s cellularcommunications market, to discuss and examine the potential of diffusion for thistechnology, and the project plan and strategy

iii. Visited to JCM Secretariat in Indonesian Government and Embassy of Japan inIndonesia to exchange views on MRV methodologies, how to create a betterinvestment environment for this project, premium measures for this project, and soforth

(4) Overview of the fourth research trip to Indonesia

· Date of the research trip: February 8 – 14, 2015· Main parties visited:

▪ XL Axiata▪ Huawei Services▪ Indosat▪ Packet Systems Indonesia▪ Protelindo▪ Mitra Tekno Kreasi (MTK)▪ Local MRV experts (2 experts at 1 company)

36

· Summary of research outcomesi. Meeting with XL Axiata executives finally became a reality for briefing on the

Tribrid technology, status of the feasibility study and plan for trial. They welcomedthe proposed trial project and approved of advancing the plan with HS.

ii. Meeting with Huawei Services: concerning the 30 BTS sites of the companysuggested as possible trial sites, site system configuration, etc. were confirmed andtechnological details concerning generator, battery, air conditioning, etc. wereshared and discussed.

iii. At Indosat, details were shared of what was presented when FS was reported atJCM Secretariat and what had been proposed about the trial project. Their SeniorVice President, who was in charge of technology and operation, showed interest inthe Tribrid.

iv. Briefing on multiple options concerning possible MRV methodologies for thisproject and opinion sharing on each option’s feasibility from local operator’sperspective

5.2 Research on BTS in Indonesia

(1) BTS on-site inspection

With assistance from Huawei Services, altogether 7 BTS sites were visited for on-siteinspection to obtain data of actual site for considering trial project candidates.

The BTSs near Jakarta suffer only short duration of power outages, though they areequipped with a generator. Those are suitable for PV-cell-supported electricity consumptionreduction in an effort to cut down CO2 emissions. In addition to the 2G, 3G and LTEfrequencies, other multiple systems such as Entrance Wireless are being operated, makingfacility’s electricity consumption (3 kW) larger than at a Japanese site (1.5 kW). Systemvoltage is 48V, which will have a high level of affinity to the developed Tribrid technology.

BTS site area size is 60–80 m2 comparable to Japanese facilities.

Though two air conditioning units were installed at the shelter, they were stopped andre-started every 2 to 3 hours to save energy.

The generator has a built-in 200 liter fuel tank, which has the same capacity as the size thatis easily allowed under Japanese Fire Service Act. A larger fuel tank is added to the facilityin off-grid areas. The rectifier is a model from a global vendor, who has dealerships also in

37

Japan; which means the Tribrid control is possible through more study on the equipment.

Chart 5-1: Summary of the on-site inspection BTSs

AreaOn-site

inspectiondate

No. ofCarriers

Backuppower source

Status ofpower outages

Potentialfor trial

(1) Makasar,Kota Jakarta Timur October 8 5 Lead acid

battery 2 h/day ×

(2) Rajeg, Tangerang,Banten October 9 1 Lead acid

battery 15 m ×2/week △

(3) Karawaci, Tangerang,Banten October 9 3 Lead acid

battery 3 h × 2/week △

(4) Kronjo, Tangerang,Banten October 9 2

Lead acidbattery &generator

Daily ○

(5)-1 Argawana,Pulau Panjang October 10 2

Lead acidbattery & 2generators

OFF Grid ○

(5)-2 Argawana,Pulau Panjang October 10 -

PV cell, leadacid battery& generator

OFF Grid ―

(6) Jl. Bukit Baja,Cilegon, Banten October 10 -


3 h × 2/week △

(7) Ciomas, Serang,Banten October 10 2


15 m ×2/week △

38

Chart 5-2: Locations of on-site inspection BTS and photograph of tower at (5) taken overthe sea (for information)

Jakarta

South Tangerang

Tangerang

Serang

Depok

(1)

(2)(3)

(4)

(5)

(6)

(7)

2０ｋｍ

Western Java

39

(1) Makasar, Kota Jakarta TimurDate of on-siteinspection

October 8

Location East JakartaLearnt from on-siteinspection

No generator; battery onlyUsed for 5 carriers (Indosat, Telecomsel, XL, THREE and FirstMedia)Approx. 2 hours power outage dailyCapacity of PV panel electricity generation: 1 – 1.5 kWh (4–6 panels)Trial potential is low due to lack of generator and relatively stablegrid electricity supply.

Photograph oftower

Photograph ofexterior

40

Site schematicdiagram

Wir

eles

seq

uipm

ent

Wireless equipment

Shel

ter

41

(2) Rajeg, Tangerang, BantenDate of on-siteinspection

October 9

Location TangerangLearnt from on-siteinspection

Appeared to use generator and battery housed inside the stationbuilding.Residential area with schoolsTrial potential is low due to lack of generator and relatively stablegrid electricity supply.

Photograph oftower



Shelter

42

(3) Karawaci, Tangerang, BantenDate of on-siteinspection

October 9


No generator. In a power outage, the (degraded) rechargeable batterycan be expected to operate for up to about 15 minutes.Used for 3 carriers (XL, Telecomsel, and THREE)Power outages occur twice a week: approx. 3 hours long around 6P.M.Potential PV panel electricity generation: 1 – 1.5 kWh (4–6 panels)Trial potential is low due to lack of generator and relatively stablegrid electricity supply.

Photograph oftower


43


Wir

eles

sequ

ipm

ent

Wireless equipment

Shelter

Formergenerator

site

44

(4) Kronjo, Tangerang, BantenDate of on-siteinspection

October 9


1 generator (200 L for 2-day operation) and batteryUsed for 2 carriers (XL and THREE)Daily power outage several hours longPotential PV panel electricity generation: 4 – 5 kWh (16–20 panels)There is trial potential: though grid electricity is available, severalhours of daily power outage means the Tribrid can be expected to beeffective.

Photograph oftower

Photographs ofexterior

45


Wireless equipment

Shelter

Gen

erat

or

Shelter

46

(5)-1 Panjang IslandDate of on-siteinspection

October 10

Location Panjang Island, Banten, West of JavaLearnt from on-siteinspection

Operated by 2 generators (consuming 5,000 liters over 3 months) andbatteryUsed for 2 carriers (XL and THREE)Off-grid; generator used 24/7Potential PV panel electricity generation: 4 – 6 kWh (16–24 panels)There is trial potential: 5,000 liters of fuel is used over 3 months.Assuming the price of ¥150/L and a reduction effect of 50%, the costof Tribrid installation (¥3,000, 000) will be recovered in about twoyears. Since the trial is performed in off-grid areas, the Tribrid can beexpected to be effective.

Photograph oftower


47

Generators


Wireless equipment

Generator(THREE)

Shelter

Generator

Generator

RoofReserve

tankWireless

equipment

48

(5)-2 Panjang Island (PV panel installed BTS)Date of on-siteinspection

October 10

Location Panjang Island, Banten, West of JavaLearnt from on-siteinspection

The site is adjacent to (5)-1, allowing us to perform a visual on-siteinspection of the exterior.Though there is also a generator installed, it was not running at thetime of on-site inspection as the site was operated on PV cellelectricity and quiet.From the number of antennae by the entrance, the facility seemed tobe used by one or two carriers.60 Panels (4 × 15) of probably 200 W or so were installed. It wouldhave a capacity of some 12 kWh: enough to operate 3 kW wirelessequipment for 12 – 20 hours on a fine day. Generator was stopped atthe time of on-site inspection as the site seemed to be operating onPV cell electricity.

Photograph oftower


49

(6) Jl. Bukit Baja, Cilegon, BantenDate of on-siteinspection

October 10

Location SerangLearnt from on-siteinspection

1 generator (100 L/month) and batteryUsed for 1 carrier (XL)Potential PV panel electricity generation: 1 – 1.5 kWh (4–6 panels)Trial potential is low due to relatively stable grid electricity supply.

Photograph oftower


Wireless equipment

Shelter

Generator

50

(7) Ciomas, Serang, BantenDate of on-siteinspection

October 10

Location SerangLearnt from on-siteinspection

1 generator (100 L/month) and batteryUsed for 1 carrier (XL)Potential PV panel electricity generation: 1 – 1.5 kWh (4–6 panels)Power outages occur twice a week: each approx.15 minutes longTrial potential is low due to relatively stable Grid electricity supply.

Photograph oftower


51


5.3 Seminar in Japan

In addition to the on-site research trips, representatives from Indonesia’s partner firms wereinvited to attend a seminar on the Tribrid technology. At the seminar, the future project directionwas discussed and examined.

· Dates: November 6 – 7, 2014· Invited parties: Huawei Services, Packet Systems Indonesia and MTK· Site tour: The Tribrid BTSs in Ashikaga City, Tochigi and Hidaka City, Saitama

Chart 5-3: Location and summary of BTSs toured

Wirelessequipment

Shelter

Generator

(1) BTS in Ashikaga City

(PV 1.4 kW, lead acid

(2) BTS in Hidaka City (PV

1.1 kW, Li-ion battery)

52

Chart 5-4: Scenes from the seminar

l Seminar contentØ Information on equipment at a Tribrid BTS

Chart 5-5 Power source configuration at a Tribrid BTS

(1) PV panels (6 – 8 kW)

(2) Electric powercontrol unit

(3)

DC/DCconverter


Rectifier

DC

Tribridcontroller

Rechargeablebattery

Wirelessequipment

ACDC

SupplyCharge

53

Ø Operating principlesA. At the time in the morning when the electricity price switches to a higher rate, the voltage

at the rectifier is lowered, which makes the voltage of the rechargeable battery relativehigher; therefore the electricity is supplied from the rechargeable battery to the wirelessequipment, while the supply from commercial electricity becomes lower.

B. Meanwhile, as electric power from PV panels elevates, the output voltage from theDC/DC converter also elevates higher than the voltage of a rechargeable battery, and theratio of supply to the wireless equipment increases. Because the rechargeable batteryvoltage decreases as more is discharged, it is also charged as the electric power outputfrom PV panels increases.

C. When the PV panel output declines, then the ratio of electricity from a rechargeablebattery increases; when the rechargeable battery voltage decreases even more, the supplyof commercial electricity via the rectifier increases. Generally, more electricity isgenerated by PV panels on a fine day (larger sunlight level means more light). Forinstance, in the Kanto region in Japan, the quantity of electric power output from PVpanels in a day is some 3 hours’ worth of normal rated electricity, therefore, a 6 kWh PVpanel module is expected to generate 18 kWh of electricity in a day.

D. The rectifier voltage is increased during the window of time at night when the electricityprice is cheaper, to charge the discharged rechargeable battery.

Ø Explanation of the simulation (demo) for Tribrid control of electric powerThe Tribrid control is achieved through proactive control of the rectifier voltage in the morningand at night for temporary termination of supplied electricity and charging of rechargeablebattery. Manual switching of those states allows the participant to see and appreciate the actualoperation as well as the changing state of control and its effect.

To simulate the state of A: rectifier voltage was manually lowered and outputs from PV panelsand rechargeable battery were brought to be run wirelessly, to stop supply of commercialelectricity.

Then, while stopping PV panel output supply to simulate the state of D, the rectifier voltage wasraised to demonstrate starting of rechargeable battery charging (rechargeable battery chargingstarted).

54

§ Morning (around 7 A.M.), when PV panels start generating electricity, the rectifiervoltage is turned down to a level lower than the rechargeable battery voltage;accordingly the commercial electricity supply is reduced.

Chart 5-6: PV generation starts (Sunrise – daytime window)

§ As the electric power from PV panels increases, the DC/DC converter voltagebecomes higher than the voltage of the rechargeable battery, supply to the wirelessequipment increases, and the rechargeable battery is also charged.

Chart 5-7: PV electricity generation (Daytime)

PV panels

DC/DCconverter

(53 V)

PV starts supplyingelectricity

Wirelessequipment

Rechargeablebattery(53 V)

ACDC

SupplyCharge

Rectifier (50 V)

Mother line: 53 V DC

Electricityused

Commercialelectricity

Electricityconsumed byequipment

PV-generatedelectricity

Electricity fromrechargeable

battery

0–7

Time window oflate-night rate

electricity

Noon 23–

Time window oflate-night rate

electricity

AC 100V/200V

Lowers voltage atrectifier

Rechargeable batterystarts supplyingelectricity

PV panels

DC/DCconverter(53 V)

PV becomes themain source ofpower supply

Wirelessequipment


ACDC

SupplyCharge

Rectifier (50V)


Electricityused





battery

0–7Time window oflate-night rate

electricity

Noon 23–Time window oflate-night rate

electricity

AC 100V/200V

Surplus electricitycharges rechargeablebattery

55

§ When PV panel output declines, electricity is also supplied from the rechargeablebattery; when rechargeable battery voltage declines, supply of commercialelectricity via the rectifier increases.

Chart 5-8: PV electricity generation (evening – night-time window)

§ By increasing the voltage for rectifier at night (around 23), the rechargeable batteryis charged at a cheaper rate, to be used during the day (from morning till night)when the electricity price is high.

Chart 5-9: PV electricity generation stopped (late-night time window)

PV panels

DC/DCconverter(0 V)

Starts receivingcommercialelectricity

Wirelessequipment


ACDC

SupplyCharge

Rectifier (50 V)


Electricityused





battery


electricity


electricity

AC 100V/200V

PV panels

DC/DCconverter(0 V)

Fully charged

Wirelessequipment


ACDC

SupplyCharge

Rectifier (53 V)


Electricityused





battery


electricity


electricity

AC 100V/200V

Stop supplying electricitywhile maintaining thepre-determined chargelevel

56

Chapter 6 Project Plan and Feasibility Assessment

6.1 Examining project’s effects

(1) Facility system configuration for the Tribrid technology introduction

A BTS for this study is used as a model site to examine effects of the Tribrid when fullyimplemented.

Chart 6-1 shows the previous system configuration of the BTS; while Chart 6-2 shows itsexterior.

Chart 6-1: Pulau Panjang BTS system (pre-introduction configuration)

Chart 6-2: Exterior of Pulau Panjang BTS system (pre-introduction configuration)

Chart 6-3 shows the system configuration of the BTS after introduction of the Tribridtechnology. The components/devices shown in green had changes from pre-introduction systemconfiguration. Chart 6-4 is a conceptual diagram showing how PV panels (a total of 20 panelsfor 5 kW output) may be installed at the BTS.

G

G

RECT

RECT

BATT

BATT

AirC

AirC

２G

３G

４G

TimerRy

fueltank

fueltank

fuel tank Entra

20KVA

20KVA

Standby

Run

57

Chart 6-3: Pulau Panjang BTS system with the Tribrid (post-introduction system configuration)

*MSB Abbreviation for “molten salt electrolyte battery” indicating a molten salt battery

Chart 6-4: Conceptual diagram showing how PV panels may be installed at Pulau Panjang BTS

(2) Pre-/post-introduction energy consumption and effect of energy saving and alternativeenergy

· Pre-introduction energy consumption at the siteChart 6-5 shows the correlation between electricity consumption by the wireless equipmentinstalled at BTSs and generator fuel consumption (actual data), which were collected by HuaweiServices, our local partner, at their 44 BTSs and kindly offered for this study.

20KVA

RECT

RECT

２G

３G

４G

fueltank

fueltank

fuel tank Entra

20KVA

Tribridcontroler

G

G

Li-ionOr

MSB※

Batt

PV2～5kw

Fan

30kwh

DC/DC

Standby

Run

Run/Stop

AirC

AirCTimer

Ry

Wireless equipment

Shel

terGenset

AC AC

Tank

Genset

Genset(THREE)

Wireless equipment

Roof

Wireless equipment

Shel

terGenset

AC AC

Tank

Genset

Genset(THREE)

Wireless equipmentRoofPV 5kWp20pieces

58

Chart 6-5: Correlation between generator fuel consumption and electricity consumptions bywireless equipment at BTS

No correlation was observed between generator fuel consumption and electricity consumptionby wireless equipment at BTS. This is thought to be because generator output (20 kW onaverage) is larger than the electricity consumption: several kW difference does not make adifference in fuel efficiency.

To take this into consideration, the quantity of generator fuel consumption at pre-introductionfacilities was worked out based on the average per-month amount of fuel consumed, the actualdata at the 44 BTSs offered as below for this study.

<Formula to calculate generator fuel consumption at pre-introduction facilities>Average per-month amount of fuel consumed at the 44 BTSs studied: 2,000 LDays operated: 30 daysPer-day fuel amount: 2000 L/30 days = 67 L/day

· Post-introduction energy consumptionThe 44 BTSs were categorized into three groups in calculation of energy consumptionThe three energy consumption groups are: Group A (less than 2 kW); Group B (2–3 kW) andGroup C (3 kW or more). Chart 6-6 shows category criteria for the respective groups.

Fuel

cons

umpt

ion

Electricity consumption(Wireless equipment)

59

Chart 6-6 shows category criteria for Groups A–CA B C

BTS load 1.5 kW 2.5 kW 3.2 kWPV 3 kw 4 kW 5 kWLi-BATT 30 kW 30 kW 30 kW

Potential energy consumption reduction effects in Groups A–C are calculated, whose results areshown in Chart 6-7. The total potential energy consumption reduction effect for all groups bythis project is approx. 590 kL/year, or, in terms of costs of fuel saved, approx. ¥ 89,000,000 peryear (assuming ¥150/L)

Chart 6-7: Energy consumption reduction effects in Groups A–CA B C

Current quantity of energyconsumption

67 L/day = 2.8 L/h *1 × 24 h

Electricity consumption 60 kW/day 96 kW/day 113 kW/dayBTS 1.5 kW × 24 h = 36

kWh2.5 kW × 24 h = 60kWh

3.2 kW × 24 h = 77kWh

Air conditioner 2 kW × 12 h = 24kWh

3 kW × 12 h = 36kWh

3 kW × 12 h = 36kWh

Quantity of PV generatedelectricity *2

21 kW/day3 kW × 8.1 h ×Efficiency 0.85



Generator Electricity required 39 kW/day 68 kW/day 78 kW/dayHours in operation 11.1h = 39 kWh/3.5

kW12.4 h = 68kWh/5.5 kW

12.6 h = 78kWh/6.2 kW

Quantity of fuelconsumption *3

28 L/day= 2.5 L/h × 11.1 h

31 L/day= 2.5 L/h × 12.4 h

32 L/day= 2.5 L/h × 12.6 h

Quantity of reduction per day 39 L/day (58%reduction)

36 L/day (54%reduction)

35 L/day (52%reduction)

Annual reduction per BTS 14.2 kL 13.2 kL 12.8 kLQuantity of annual reduction(Total)

227 kL (16 BTSs) 211 kL (16 BTSs) 154 kL (12 BTSs)

*1: Refer to the previously described “Formula to calculate generator fuel consumption at pre-introduction facilities”about calculation of current state with energy consumption

*2 Sunlight hours: A BTS with electricity load 3 kW requires 72 kWh of electricity in 24 hours. PV cell has theability to generate 6 kW. With 8.1 hours of average sunlight hours in Jakarta and the factor of 0.85, 42 kWh ofelectricity is generated. Load – PV generated quantity = 108 kWh – 42 kWh = 66 kWh is the quantity ofelectricity to be supplied by the generator, which can generate 9 kW; therefore needs to be operated at 66 kWh /9 kWh ≒ 7.3 hours. The pattern will be one hour operation followed by one hour resting. As 2 liters of fuels isrequired per-hour, 14.6 liters will be consumed over the 7.3 hours. Meanwhile, if the generator is to run for 24hours, it requires 1.2 liters of fuel per-hour, consuming 28.8 liters in 24 hours. In the chart below, the yellowrow indicates monthly average of per-day sunlight hours. The bottom row shows Tokyo data.

60

*3 Post-introduction fuel consumption: Assuming the secondary regulation compliant generators are widely in usein Indonesia, if the generators are upgraded to the tertiary regulation compliant with approx. 10% better fuelefficiency, 2.5 L/h was assumed the generators’ fuel efficiency. The table below shows comparison of loadfactor between the secondary regulation compliant generator and the tertiary regulation compliant generator.

Source: https://www.nhk.or.jp/pr/marukaji/pdf_ver/272.pdf

6.2 Review towards field trial

To narrow down on possible field trial sites from the 44 BTSs presented by Huawei Services asfield trial candidate sites, such matters as electricity supply system, geographic conditions andsystem configuration are reviewed through discussions with Huawei Services.Chart 6-8 shows the list of the sites and Chart 6-9 shows their locations on map.

Comparison of load rate and fuel efficiency in 35 kVA output generator

Generator’s load factor

Existing unit(the secondary

regulationcompliant)Development unit(the tertiaryregulationcompliant)

Reduction rate

Unit: Liter/hour

61

Chart 6-8: List of implementation sitesSite№ Location (City) Location (State) Electricity supply

systemBTSclass

1 MUARO JAMBI JAMBI Full Genset C

2 BANGKA TENGAH KEPULAUAN BANGKABELITUNG Full Genset B

3 JAKARTA UTARA DKI JAKARTA Full Genset A4 JAKARTA UTARA DKI JAKARTA Full Genset A5 BREBES CENTRAL JAVA CDC Own Build C6 BUNGO JAMBI Full Genset A7 TANJUNG JABUNG BARAT JAMBI Full Genset A8 REJANG LEBONG BENGKULU Full Genset B9 MUSI BANYUASIN SOUTH SUMATERA Full Genset B

10 LUWU UTARA SOUTH SULAWESI Full Genset B11 LUWU UTARA SOUTH SULAWESI Full Genset B12 JAMBI JAMBI Full Genset A13 LAMPUNG BARAT LAMPUNG Full Genset B14 LAMPUNG BARAT LAMPUNG Full Genset A15 MUSI RAWAS SOUTH SUMATERA CDC Own Build B16 MUSI RAWAS SOUTH SUMATERA Full Genset C17 LAHAT SOUTH SUMATERA CDC Own Build C18 KAUR BENGKULU Full Genset A19 DONGGALA CENTRAL SULAWESI Full Genset A20 TANJUNG JABUNG BARAT JAMBI CDC Own Build A21 KERINCI JAMBI CDC Own Build A22 OGAN KOMERING ILIR SOUTH SUMATERA CDC Own Build A23 TANJUNG JABUNG BARAT JAMBI CDC Own Build B24 TULANG BAWANG LAMPUNG CDC Own Build A25 MUSI RAWAS SOUTH SUMATERA CDC Own Build B26 OGAN KOMERING ILIR SOUTH SUMATERA CDC Own Build C27 LAHAT SOUTH SUMATERA CDC Own Build B28 SERANG BANTEN Full Genset A29 BEKASI WEST JAVA Full Genset A30 TANGERAN BANTEN CDC Own Build A

62

Chart 6-9: Locations of field trial sites (plan)Chart 6-9: Locations of field trial sites (plan)

Legend: � = Group A; £ = Group B; ¶ = Group C; Red = generator fully operated; andYellow = generator + battery operated

Legend: ○ = Group A; □ = Group B; ☆ = Group C; Red = generator fully operated; andYellow = generator + battery operated

Java

Sumatera

Kalimantan

Sulawesi

Malaysia

Indonesia

Singapore

Malaysia

East Timor

Philippines

Thailand

63

Chapter 7 Project Planning Review

In this chapter, a long-term project implementation is reviewed assuming introduction to othermultiple clients and regions.

Specifically, scenarios for technology diffusion are considered in respect to facility investmentcosts calculated based on the average fuel costs reduction discussed in Chapter 6 and desiredrecovery period (ROI).

7.1 Cost effectiveness

Diesel generators supply BTSs in Indonesia owing to slow expansion of the grid and high levelof demand for cellular service.

After interviewing the local Indonesian people, it was found that there was a high level ofinterest in less running of generator, for such reasons as fuel cost reduction and extra tasksrequired for topping up the fuel. On the other hand, they hope for a recovery of investment costswithin three to four years.

In the following section, cost benefit is calculated based on facility capacity and generator fuelcosts: the information obtained through the interview survey.

(1) Facility and environmental conditions

The following were assumed: Wireless equipment load 3 kWh; generator (Geneset) 20 kVA;annual average of daily sunlight hours 8; hours of operation (hours generator is running) 24;quantity of fuel consumption 24,000 liters per year (2.8 L/h or 67 L/day), requires a fuel cost of¥ 3,600,000.

(2) Calculation of equipment capacity and numbers (assuming a case in which existing BTS isretrofit with PV cell, rechargeable battery, etc., proposed for this project)

The quantity of electricity required to meet the wireless equipment’s load for a day is workedout, then the portion that can be supplied by PV cell output is calculated. As PV cell onlygenerates during day, the rechargeable battery can be used to supply electricity in hours outsidethat window to reduce hours the generator runs.

Generator is run when PV cell output cannot be obtained due to cloudy conditions, etc., and, as

64

well as supplying the electricity to meet the wireless equipment’s load, it also supplieselectricity to the rechargeable battery to be stored. The generator is stopped when therechargeable battery is fully charged. In other words, when lacking PV cell output, the generatorwill repeat startup and stop cycle. Owing to this repeat of charging and discharging, rather thanlead acid battery, the most suitable type of rechargeable battery is the one with long product lifeand long-cycle longevity, such as a lithium ion battery.

· Quantity of electricity required for a day: 24 h × 3 kWh = 72 kWh· PV cell generation output: 72 kWh / 8 h sunlight hours × efficiency factor 0.85 = 10.6 kW· Quantity of stored charge: Night (hours outside sunlight hours: 24 – 8) 16 h × 3 kW = 48

kWh of electricity required outside PV cell generation hoursSOC (charge rate) is, taking into consideration battery’s product longevity and cyclelongevity (8,000 cycle 10 years), to be the range between 20% and 80%If the 20%–80% range for 48 kWh, SOC will be 16 kWh at 20% and 64 kWh at 80%; thenthe battery capacity will be 80 kWh

The above calculation assumes a 10 kW PV cell and a 72 kWh Li ion battery, whose pricetogether exceed ¥10,000,000. (Refer to Chart 7-1)

Meanwhile, comments from local people strongly hoping to recoup the investment within aboutthree years were heard. Accordingly, a model is considered in which the fuel cost reductioncovers the equipment costs. On a 50% fuel reduction scenario, there will be a ¥ 1,800,000 costreduction annually or ¥ 5,400,000 over three years. The next chart shows the numbers offacilities related to rechargeable battery and PV cell and the costs involved. Numbers related tothe kind of facilities that come under ¥5,400,000 were: 1: 30 kWh rechargeable battery and 6kWh PV cell for ¥4,520,000; and 2: 40 kWh rechargeable battery and 4 kWh PV cell for¥ 5,230,000. Based on these numbers, estimated reduction effects for the respective abovefacilities are as below:

Equipment configuration 1:

• Quantity of electricity required for a day: 24 h ´ 3 kWh = 72 kWh• Quantity of PV cell generation: 6 kW PV cell ´ 8 h sunlight hours ´ efficiency factor

0.85 = 42 kWh

• Rechargeable cell capacity: (42 kWh – 8 h ´ 3 kWh wireless equipment load) ×contingency capacity factor 1.6 = 28.8 kWh

• Generator operating time: (72 kWh – 42 kWh) / 3 kWh = 10 h• Fuel consumption: 28 L/day• Reduction rate: 28 L/67 L = 0.58

65

Equipment configuration 2:

• Quantity of electricity required for a day: 24 h ´ 3 kWh = 72 kWh• Quantity of PV cell generation: 4 kW PV cell ´ 8 h sunlight hours ´ efficiency factor

0.85 = 27 kWh

• Rechargeable cell capacity: (27 kWh – 8 h ´ 3 kWh wireless equipment load) ´contingency capacity factor 1.6 = 4.8 kWh (small for the 40 kWh battery capacity)

• Generator operating time: (72 kWh – 27 kWh) / 3 kWh = 15 h (long generator operatingtime)

• Fuel consumption: 42 L/day• Reduction rate: 42 L/67 L = 0.37

The reduction rate for equipment configuration 1 is 58%; for equipment configuration 2, it is37%. By choosing configuration 1, the operator can enjoy over ¥ 2,000,000 worth of fuelreduction effect annually: a model allows recovery of the ¥4,500,000 investment within threeyears. Meanwhile configuration 2 would offer some ¥1,300,000 annual reduction for the facilityinvestment of ¥5,230,000: meaning recovery is not possible within three years.

Further examination of the above indicates that more investment does not always lead to morecost reduction; and it appears the key is the respective costs of PV cell and rechargeable batteryand the balance between them.

Equipment configuration 1’s rechargeable battery has a capacity of 30 kWh; which matches therequired capacity. Larger capacity does not bring more effect. Equipment configuration 2’srechargeable battery has a capacity of 40 kWh for the required capacity of 4.8 kWh; which isexcessive and indicates the facility investment was wasteful.

If frequent power outages are suffered in a grid connected area, the equipment costs need to beconsidered based on generator fuel costs, which should be worked out while taking intoconsideration such matters as the windows of time that power outages occur, its duration andelectricity pricing.

66

Chart 7-1: The Tribrid system cost effectiveness calculation table

The following chart compares two scenarios: making a ¥4,500,000 investment for theequipment configuration 1 and operating it with fuel cost of ¥1,800,000, which is a ¥2,000,000reduction from the pre-existing annual fuel cost of ¥3,800,000; and operating with the existingsystem configuration with annual fuel cost of ¥3,800,000. Equipment cost recovery within about2 years is possible. Even if the installation work costs are more expensive for a site such as aremote island, equipment costs of ¥6,000,000 can be recovered within three years.

In addition, the reduction of the per-site operational cost by ¥2,000,000 may be invested ininstalling the system at other sites

In another scenario, in which the ¥4,500,000 equipment costs are funded by a 5-year lease with10% interest: paying ¥1,000,000 per-annum lease will take ¥2,000,000 off the annual fuel costof ¥3,800,000, while ¥1,800,000 plus the ¥1,000,000 means ¥2,800,000 is all that is needed tostart operating the system. Without incurring the cost of initial facility investment, the operatorcan enjoy a ¥1,000,000 cost saving even in the first year.

蓄電池のコスト太陽電池のコスト

電池容量ユニット数ラック費用電池費用工事費用小計 2 4 6 8 10 PV kw

20 25 30 35 40架台＋工事

万円

24 48 72 96 120PV費用万円

kWh 台万円万円万円ＰＶ無しの場合

44 73 102 131 160 小計

10 7 10 100 15 125 169 198 227 256 285

20 14 10 200 15 225 269 298 327 356 385

30 20 20 300 30 350 394 423 452 481 510

40 27 20 400 30 450 494 523 552 581 610

50 34 30 500 45 575 619 648 677 706 735

60 40 30 600 45 675 719 748 777 806 835

70 47 40 700 60 800 844 873 902 931 960

80 54 40 800 60 900 944 973 1002 1031 1060

90 60 40 900 60 1000 1044 1073 1102 1131 1160

100 67 50 1000 75 1125 1169 1198 1227 1256 1285

Rechargeable battery costs PV cell costBatterycapacity

Unitnumber

Cost ofrack

Cost ofbattery

Cost ofinstallatio

nSubtotal

Units ¥10,000 ¥10,000 ¥10,000 If no PV

Platform +installation(¥10,000)

Cost of PV(¥10,000)

Subtotal

67

Chart 7-2: Comparison of running costs between existing and proposed facilities

7.2 Business scheme

To date, there are no cases of Tribrid technology introduction overseas having become a reality.Against this backdrop, this project aims to ignite a wave of large-scale introductions anddiffusion of the technology to respective developing countries, starting in Indonesia.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

導入時 1年 2年 3年 4年 5年 6年 7年 8年 9年 10年

既設コスト提案コスト（設備導入450万円）

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

導入時 1年 2年 3年 4年 5年 6年 7年 8年 9年 10年

既設コスト提案コスト(5年リース)万円

Existing costs

Installation 1 year 2years

3years

4years

5years

6years

7years

8years

9years

10years

Costs proposed (Facility installation at ¥4,500,000)(¥10,000)

Existing costs(¥10,000) Costs proposed (5-year lease)

Installation 1 year 2years

3years

4years

5years

6years

7years

8years

9years

10years

68

The first concrete step is to build the actual Tribrid BTSs in Indonesia so that the technologywill be transferred to the local partner company Huawei Services. The plan then is to expand thetechnology horizontally across Indonesia through Huawei Services. Huawei Services is the solecontractor of XL Axiata, which has the second highest share in Indonesia’s cellularcommunications market, charged to maintain and operate Axiata’s BTSs. Seeing Tribrid BTSsspread across Indonesia through Huawei Services is quite likely to become a reality. At present,a negotiation has been started with another possible local partner, Indosat, which has the thirdhighest share in Indonesia’s cellular communications market. When the negotiation reaches anagreement, the project will have the second and third largest cellular communicationscompanies in the cellular communications market in Indonesia as the local partners to take partin this plan to promote the Tribrid technology and its business plan.

Chart 7-3 shows an image of a future commercial flow.

Chart 7-3: Image of future commercial flow

69

Chapter 8 MRV Methodology

8.1 Outline of GHG emission reduction measures

This is a project in which part of the grid electricity consumption and diesel power consumptionin BTS is replaced using solar power with Tribrid technology. Tribrid technology is atechnology that controls and optimizes the volume of solar power generation, grid electricityconsumption, diesel electric power generation and storage battery discharging and charging, andwill lead to emissions reductions. Note that in the case of existing BTS needing to upgrade itsdiesel generator, it is assumed the diesel generator will be upgraded in this project.Chart 8-1 is the project conceptual diagram.

Chart 8-1：Project outline

8.2 Establishment process of the MRV methodology

Establishment of this MRV methodology shall follow the steps described below.The first step is to perform a literature review on MRV methodologies seeking the currentinformation and the information of MRV methodologies in relevant projects in the past toidentify which MRV methodologies may be chosen as possible options. The next step is toformulate a draft of the most suitable MRV methodology by reviewing the aforementionedoptions to identify their pros and cons based on the criteria discussed in the Joint CreditingMechanism Guidelines for Developing Proposed Methodology, and by exchanging views withJapan based and local third-party experts. Below is a list of relevant past projects and important

70

matters to consider in the MRV methodology review.

Relevant past projects:･Solar Power System at Off-grid Cell Towers (MOEJ/GEC JCM Feasibility Study: FY2013）・Report on Promoting Electrification to Un-electrified Areas of Indonesia by Renewable EnergyHybrid System（METI JCM Feasibility Study: FY2012）・Solar-Diesel hybrid system to stabilize solar power generation（MOEJ/GEC JCM FeasibilityStudy: FY2013）Important matters to consider in MRV methodology review:Ø Whether the quantity of emission reduction is conservative when comparing to the BaU

modelØ Whether the methodology is easy to apply for local operators (Whether the methodology is

less burdensome for local operators; easy to understand for local operators; and ensureshigh level of fairness and transparency)

8.3 Eligibility criteria

Following eligibility criteria will fit the strength of this project and will serve its purpose of asustainable diffusion of superior Japanese technologies in Indonesia.

<Eligibility criteria (draft)>

Criterion 1

For grid connected areas: All or a part of the volume of diesel electric powergeneration and grid electricity consumption is substituted for by solar powergeneration.

For off-grid areas: All or a part of the volume of diesel electric powergeneration is substituted for by solar power generation.

Criterion 2

In addition to solar power generation systems, electricity control systems areintroduced in existing or newly constructed BTS. By the electricity controlsystems, electricity from solar power generation, diesel electric powergeneration, grid electricity consumption and electricity consumption fromstorage batteries are optimized and the volume of diesel electric powergeneration and grid electricity consumption of BTS are reduced.

Criterion 3 A lithium ion battery or a molten salt battery is adopted as a storage battery.

71

Criterion 4Maintenance and checking standards of major equipment, including thestandard of monitoring electricity consumption, are established and also theoperation plan is established.

Background and rational of proposing respective eligibility criteria above are presented below:

・ Criterion 1Indicates the fundamental framework of the project to which this methodology applies (which isreplacement of grid and diesel generator electricity with photovoltaic generation (PV) ofelectricity).

・ Criterion 2States the point that the project is not a simple introduction of PV technology; that introductionof electric power control system will optimize uses of electricity from PV, electricity from dieselelectric power generation, grid supplied electricity and electricity from batteries, thuscontributing to the reduction of greenhouse gas emissions.

・ Criterion 3Lead-acid batteries are normally used to power existing local BTSs. However lead-acid batteriesare larger and heavier than other types of rechargeable battery, may become dangerous if a leakor damaged occurs because of the use of dilute sulfuric acid, and are harmful for theenvironment at any stage of their product lifecycle until disposal. Two types of batteries areplanned for this project: Lithium ion batteries and molten salt batteries, with a lighterenvironmental burden while promising more years of use. The later, especially, has a lower rateof performance decline in hot environments when compared with other types of rechargeablebattery, therefore is expected to prove its effectiveness in Indonesia situated in the tropics.Characters of respective batteries are described in 4.4.

・ Criterion 4Even main devices are introduced at project target sites; a lack of adequate maintenance willcompromise device performance, and, not only reduce their greenhouse gas emission reductioneffects, but increase the risks for such problems as malfunction. Consequently, it is deemedimportant to establish standards of maintenance and inspection for important devices and toensure those are properly implemented, which is the reason for proposing this criterion.

72

8.4 Reference scenario

Below is the reference scenario that is assumed to be appropriate for this project in severaloptions discussed in 8.5.

For grid connected areas:During BaU, the power for BTS is covered by grid power and supplemental diesel electricpower generation sources (during power outages). Reference emissions are calculated under theassumption that all consumption is covered by grid power, in the interest of simplifying thecalculations and keeping the net emission reduction results conservative. However, if the gridemission factor exceeds the emission factor from the supplemental diesel electric powergeneration source, the emission factor from the supplemental diesel electric power generationsource is used instead, in the interest of simplifying the calculation of the net emission reductionand keeping the calculation results conservative. The emission factor used for diesel electricpower generation is 0.8tCO2/MWh (figure for small-scale CDM methodology AMS-I.A.).

For off-grid areas:During BaU, the power for BTS is covered by diesel electric power generation. The emissionfactor used for diesel electric power generation is 0.8tCO2/MWh (figure for small-scale CDMmethodology AMS-I.A.).

8.5 Review of options of MRV methodologies

This project introduces the Tribrid system, which is a combined system of PV electricitygeneration and electric power control, to reduce BTS’s reliance on grid electricity (if in gridconnected area) and reduce diesel fuel consumption. In terms of calculating quantity of emissionreductions, its framework is considered relatively simple. The following options may beconsidered as relevant MRV methodologies.

73

<Summary of the options>Reference emissions Project emissions

Option 1 Calculated by multiplying grosselectricity consumption at project targetsites with reference emission factor(grid connected areas: the lowest ofgrid emission factor or diesel electricpower generation emission factor;off-grid areas: diesel electric powergeneration emission factor)

Calculated by multiplying grid electricityconsumption at project target sites withemission factor; multiplying quantity ofdiesel fuel consumption with calorificvalue of diesel and then emission factor;and adding the obtained values

Option 2 As above Calculated by multiplying grid electricityconsumption at project target sites withgrid emission factor; multiplyingquantity of diesel generated electricitywith diesel electric power generationemission factor; and adding the obtainedvalues

Option 3 The quantity of the emissions fromdiesel electricity generation iscalculated from gross electricityconsumption at project target sites,power loss rate and reference fuelconsumption efficiency in dieselgenerator (t/MWh). Also quantity ofthe emissions from grid electricity useis calculated from gross electricityconsumption at project target sites,power availability rate and gridemission factor. Those emission valuesare added to calculate referenceemissions

Same as Option 1

Option 4 (If introducing to existing BTS)Calculated by obtaining the quantity ofemissions by multiplying the meanvalue of grid electricity consumptionfor BTSs at project target sites in thepast three years with grid emission

Same as Option 1

74

factor; obtaining the quantity ofemissions by multiplying the meanvalue of quantity of diesel fuelconsumption in the past three yearswith calorific value of diesel and thenemission factor; and then adding theobtained values.(If BTS is new) Choose the mostappropriate methodology from options1–3.

Formulae of respective options, their challenges, advantages and such matters are presentedbelow; with reference to the principles of MRV methodology formulation in JCM (i.e. a simplemethodology for local operators to sustain implementation; and conservative calculation):

(1) Option 1<Summary>Reference emissions:Calculated by multiplying gross electricity consumption for BTSs at project target sites withreference emission factor (in grid connected area: either grid emission factor or diesel electricpower generation emission factor (the smaller one between the two factors), in off-grid area:diesel electric power generation emission factor).

Project emissions:Calculated by obtaining quantity of emissions by multiplying grid electricity consumption atproject target sites with grid emission factor (grid connected areas only); obtaining quantity ofemissions by multiplying quantity of diesel fuel consumption at project target sites withcalorific value of diesel and then diesel emission factor (the calorific value and emission factorlisted in “2006 IPCC Guidelines for National Greenhouse Gas Inventories”); and adding theobtained values

75

<Calculation formula><Emissions reductions>

ERp = REp － PEp

ERp : Emissions reductions during the period p [tCO2/p]REp : Reference emissions during the period p [tCO2/p]PEp : Project emissions during the period p [tCO2/p]

<Reference emissions>

= , , ×

RE : Reference emissions during the period p [tCO2/p]EC , , : Electricity consumption of project BTS i during the period p [MWh/p]EF : CO2 emission factor for consumed electricity [tCO2/MWh]*1

Determination of ECPJ,i,p

, , = , , + , , + , ,

EC , , : Electricity imported from the grid at project BTS i during the period p[MWh/p]

EG , , : Amount of diesel electric power generation of project BTS i during theperiod p [MWh/p]

EG , , : Amount of solar power generation of project BTS i during the period p[MWh/p]

*1 In grid connected area: either grid emission factor or diesel electric power generationemission factor (the smaller one between the two factors) is used in the interest of simplifyingthe calculations and keeping the net emission reduction results conservative.In off-grid area: diesel electric power generation emission factor is used. The emission factorused for diesel electric power generation is 0.8tCO2/MWh (figure for small-scale CDMmethodology AMS-I.A.).

<Project emissions>

76

= , , × + , , × ×

PE : Project emissions during the period p [tCO2/p]EC , , : Electricity imported from the grid at project BTS i during the period p

[MWh/p]*2

EF : CO2 emission factor for consumed grid electricity [tCO2/MWh]FC , , : Amount of diesel fuel consumption of project BTS i during the period p

[t/p]NCV : Net calorific value for diesel fuel [GJ/t]*3

EF : CO2 emission factor for diesel fuel [tCO2/GJ]*3

*2 In off-grid areas, grid electricity consumption (EC , , ) = 0*3 2006 IPCC Guidelines for National Greenhouse Gas Inventories

<Advantages of this option>Reference emissions:All that is required is multiplying gross electricity consumption at project target sites with gridor diesel electric power generation emission factor. This option allows an easy calculationprovided the gross electricity consumption at project target sites can be measured. Therefore, theoption places little burden of calculation on the project proponent, promising a better likelihoodof being put into practice.

Project emissions:The method estimates diesel electric power generation origin emissions based on the diesel fuelconsumption, which can be calculated using invoices issued when diesel is purchased. Therefore,the option promises relatively better likelihood of being put into practice.

<Challenges of this option>Quantity of emission reduction is calculated lower than other methods because the0.8tCO2/MWh for the factor of diesel electric power generation is conservative but the factor of“Net calorific value for diesel fuel” and “Emission factor for diesel fuel” are not conservative.Reference emissions and project emissions should be calculated based on the same calculationbase (Both reference emissions and project emissions should be calculated based on “quantity ofdiesel electricity generation and 0.8tCO2/MWh”, or both should be calculated based on “dieselfuel consumption, net calorific value, and emission factor for diesel fuel”). So this option is notappropriate as an MRV methodology.And this option of estimating diesel generator origin emissions based on the diesel fuel

77

consumption requires adequate compilation of data from the invoices issued when diesel fuel ispurchased; therefore there is a chance the compilation may not be complete.

(2) Option 2<Summary>Reference emissions:Calculated by multiplying gross electricity consumption for BTSs at project target sites withreference emission factor (in grid connected area: either grid emission factor or diesel electricpower generation emission factor (the smaller one between the two factors), in off-grid area:diesel electric power generation emission factor).

Project emissions:Calculated by obtaining quantity of emissions by multiplying grid electricity consumption atproject target sites with grid emission factor (grid connected areas only); obtaining quantity ofemissions by multiplying quantity of diesel generator electricity at project target sites withdiesel electric power generation emission factor; and adding the obtained values.

<Calculation formula>

<Emissions reductions>

ERp = REp － PEp



= , , ×

RE : Reference emissions during the period p [tCO2/p]EC , , : Electricity consumption of project BTS i during the period p [MWh/p]EF : CO2 emission factor for consumed electricity [tCO2/MWh]*1


78

, , = , , + , , + , ,




*1 In grid connected area: either grid emission factor or diesel electric power generationemission factor (the smaller one between the two factors) is used in the interest of simplifyingthe calculations and keeping the net emission reduction results conservative. In off-grid area:diesel electric power generation emission factor is used. The emission factor used for dieselelectric power generation is 0.8tCO2/MWh (figure for small-scale CDM methodologyAMS-I.A.).

<Project emissions>

= , , × + , , ×


[MWh/p]*2

EF : CO2 emission factor for consumed grid electricity [tCO2/MWh]EG , , Amount of diesel electric power generation of project BTS i during the

period p [MWh/p]EF CO2 emission factor for diesel electric power generation [tCO2/GJ]*3

*2 In off-grid areas, grid electricity consumption (EC , , ) = 0*3 0.8 tCO2/MWh (figure for small-scale CDM methodology AMS-I.A.)

As the emissions reduction for especially off-grid areas this method gives is the same quantityof emissions obtained by quantity of multiplying PV with reference emissions factor, themethodology may be made even simpler. But as diesel generator use is also assumed in thisproject, the formula for this option is as stated above in the interest of project boudary.

<Advantages of this option>

79

Reference emissions:All that is required is multiplying gross electricity consumption at project target sites with thegrid or diesel electric power generation emission factor. This option allows an easy calculationprovided the gross electricity consumption at project target sites can be measured. Therefore, theoption poses little burden of calculation on project proponent, promising a better likelihood ofbeing put into practice.

Project emissions:Provided the quantity of diesel generated electricity can be measured, all that is required is tomultiply that value with the diesel emission factor. Therefore, the option poses little burden ofcalculation on the project proponent, promising a better likelihood of being put into practice.

In conclusion, the option requires the least human intervention in the calculation of quantity ofemissions reduction, with less likelihood of missed pieces of data or miscalculations incompilation, and promises higher transparency in calculation results.

<Challenges of this option>One of the features of Tribrid technology is that it realizes the improvement of the fuelconsumption rate by optimizing the electricity from solar power generation and diesel electricpower generation, grid electricity consumption and electricity consumption from storagebatteries. But in this calculation method, the improvement of the fuel consumption rate (L/kWh)by Tribrid technology is difficult to be reflected in the calculation.

(3) Option 3<Summary>Reference emissions:Calculated by multiplying quantity of gross electricity consumption for BTSs at project targetsites with power loss rate (ratio of power-cut hours /annual operation hours) and fuelconsumption efficiency of diesel generator (t/MWh; take the best figure from those of thegenerators used in Indonesia) to obtain diesel fuel consumption data in reference scenario;multiplying that value with calorific value of diesel and then diesel emission factor to obtain thequantity of emissions from diesel electric power generation in reference scenario; as well asmultiplying quantity of gross electricity consumption for BTSs at project target sites with“power availability rate (100% ˗ power loss rate (%))” and grid emission factor to obtain thequantity of emissions from grid electricity use in reference scenario; and adding both values toobtain quantity of reference emissions.

Project emissions:

80

Calculated by obtaining quantity of emissions by multiplying grid electricity consumption atproject target sites with grid emission factor (grid connected areas only); obtaining quantity ofemissions by multiplying quantity of diesel fuel consumption at project target sites withcalorific value of diesel and then diesel emission factor (the calorific value and emission factorlisted in “2006 IPCC Guidelines for National Greenhouse Gas Inventories”); and adding theobtained values.


ERp = REp － PEp



= , , × × × × + , , × ×

RE : Reference emissions during the period p [tCO2/p]EC , , : Electricity imported from the grid at project BTS i during the period p

[MWh/p]POR : Power outage rate in the project area [%]FR : Fuel consumption rate of diesel generator in Indonesia [t/MWh]*1

NCV : Net calorific value for diesel fuel [GJ/t]*2

EF : CO2 emission factor for diesel fuel [tCO2/GJ]*2

PAR : Power availability rate in the project area (100-PORPJ)[%]EF : CO2 emission factor for consumed grid electricity [tCO2/MWh]

*1 Take the best figure from those of the generators used in Indonesia*2 2006 IPCC Guidelines for National Greenhouse Gas Inventories


, , = , , + , , + , ,

81




<Project emissions>

= , , × + , , × ×


[MWh/p] *3


[t/p]NCV : Net calorific value for diesel fuel [GJ/t] *4

EF : CO2 emission factor for diesel fuel [tCO2/GJ] *4


<Advantage of this option>Reference emissions:This project is expected to bring improvement in diesel fuel consumption rate. This option,calculation based on the amount of diesel consumed, is likely to estimate that improvement.

Project emissions:Unlike Option 1, calculation of both reference emissions and project emissions are based on fuelconsumption, therefore, if the appropriate diesel electricity consumption rate (t/MWh) forreference emission calculation is known, it is likely to make a good estimation of the project’sfuel consumption improvement effect.

<Challenges for this option>It is difficult to find accurate diesel fuel consumption efficiency data (L/kWh, kL/MWh, ort/MWh) as reference for diesel generators in Indonesia. It may be possible to find values of

82

catalogs of diesel generators sold in Indonesia, though diesel generators’ operational conditionsvary from site to site; therefore actual values may be completely different to those of catalogs.However, diesel electricity generation is a mature technology, therefore, provided the dieselgenerator is a recent model, the value is likely not much different from that on the catalog. And,if that is the case, the emission reduction obtained by this option is expected to be not muchdifferent from that by Option 2. In addition, a case may also be anticipated in which adequatelyobtaining the loss of load rate in project site area proves difficult.

(4) Option 4<Summary>Reference emissions:(Introduction to existing BTSs)Calculated quantity of emissions by multiplying the mean value of grid electricity consumptionfor BTSs at project target sites in the past three years with grid emission factor to obtain thequantity of emissions; by multiplying the mean value of diesel fuel consumption in the pastthree years with calorific value of diesel and then the emission factor to obtain the quantity ofemissions; and then adding the obtained values.(Introduction to new BTSs)Use the finally chosen methodology from those described in options 1–3

Project emissions:Calculated by obtaining quantity of emissions by multiplying grid electricity consumption atproject target sites with grid emission factor (grid connected areas only); obtaining quantity ofemissions by multiplying quantity of diesel fuel consumption at project target sites withcalorific value of diesel and then diesel emission factor (the calorific value and emission factorlisted in “2006 IPCC Guidelines for National Greenhouse Gas Inventories”); and adding theobtained values


ERp = REp － PEp


83

For existing BTS


= , , × + , , × ×

RE : Reference emissions during the period p [tCO2/p]EC , , : Average electricity imported from the grid before the project BTS i

during the last 3 years [MWh] *1

EF : CO2 emission factor for consumed grid electricity [tCO2/MWh]FC , , : Average amount of diesel fuel consumption before the project BTS i

during the last 3 years[t]NCV : Net calorific value for diesel fuel [GJ/t] *2



<Project emissions>

= , , × + , , × ×


[MWh/p] *3


[t/p]NCV : Net calorific value for diesel fuel [GJ/t] *4



For newly constructed BTS

Option1, 2 or 3 is adopted.

84

<Advantage of this option>Reference emissions are almost the same as BaU emissions, therefore, for project participants,the reduction of emissions easily reflects the improvement in diesel fuel consumption efficiency,which can be said to be an advantage.

<Challenges for this option>The reference emissions determined by this option is “Emissions in BaU” rather than the“Reference emissions” according to JCM.Also, the need for two methodologies, one for the existing project and the other for the newproject, makes it somewhat complex for those who implement the project.

8.6 Outcome of local expert feedback hearing

The table below shows the outcome of opinion exchange with three local experts (from twocompanies) on MRV methodologies (draft).

Summary of opinion exchange with local expertsOption 1 In terms of burden on local operators, as well as the question of appropriateness as

emissions reduction described in “Challenges of this option” above, it seemsOption 2 is more feasible.

Option 2 Although (the effect) less likely reflects the improvement in diesel fuelconsumption efficiency in this option, it offers a simple methodology, which meanslocal operators are more likely to implement it. Complex methodology is difficultto implement on site. This option will be most appropriate over all.

Option 3 It will be difficult to monitor power loss rate on an ongoing basis. Furthermore,diesel generators are used in a range of ways in Indonesia; therefore, it will bedifficult to adequately identify diesel fuel consumption efficiency of dieselgenerators for the reference scenario. However, as diesel electric power generationis a mature technology, the difference between the reference generator and newlyintroduced generators will be negligible. Therefore, it is preferable that the simplercalculation method is adopted.

Option 4 Complexity with the different methodologies, one for existing BTSs and the otherfor new BTSs, is problematic. Also, regarding averaging of past three-yearemissions data, this is BaU emissions and cannot be considered “referenceemissions” can it?

Source: local expert feedback hearing sessions on October 21 and 22, 2014 and February 10, 2015

85

8.7 General summary of MRV methodology options

(1) Advantages and challenges of respective MRV options at a glanceOutcomes of the above research are arranged in the table below to show the advantages andchallenges of respective MRV options.

Option 1 Option 2 Option 3 Option 4

Calculationconservative

� � �

Í(ExistingBTS)� (New

BTS)Easiness in obtainingdata and likelihood oflocal implementation

r � Í r

Remission reductionreflects the effect of thistechnology(improvement of fuelconsumption efficiency)

r r

r

(� only if the data fordiesel generator fuel

efficiency can be obtainedin the reference stage.Practically difficult,

however)

� (ExistingBTS)r (New

BTS)

Local experts views r � Í Í

Final evaluation r � Í Í

Based on the above, Option 2 is assumed the adequate MRV methodology for JCM. The detailsof this methodology (draft) are shown in 8.8.

8.8 MRV methodology

Draft MRV methodology of this project is as follows.

A. Title of the methodology

Introduction of Solar Power Generation and Electricity Control Systems for Base TransceiverStations

86

B. Terms and definitions

Terms DefinitionsBase Transceiver Station(BTS)

A facility equipped with antennae and other communicationsequipment for sending and receiving cellular phone radio waves.This methodology covers both existing and newly constructedfacilities.

Electricity control system A system that optimizes the amount of power used from solarpower generation, power imported from the grid, power fromdiesel electric power generation, and power from storage cells toachieve a reduction in the amount of power used that is importedfrom the grid and in the amount of fossil fuels used in dieselelectric power generation.

C. Summary of the methodology

Items SummaryGHG emission reductionmeasures

Reduces the amount of power used that is imported from thegrid (in grid connected areas) and the amount of fossil fuelsused in diesel electric power generation by introducing solarpower generation and electricity control systems.

Calculation of referenceemissions

For grid connected areas:The calculations are performed under the assumption that theentire power consumption of the BTS after implementation ofthe project is covered by grid power. However, if the gridemission factor exceeds the emission factor from supplementaldiesel electric power generation sources, the emission factorfrom the supplemental diesel electric power generation sourcesis used instead, in the interest of simplifying the calculations andkeeping the calculation results conservative.

For off-grid areas:The calculations are performed under the assumption that theentire power consumption of the BTS after implementation ofthe project is covered by diesel power.

Calculation of projectemissions

The calculations are performed based on the amount of powerused that is imported from the grid (in grid connected areas) and

87

the amount of power generated in diesel electric powergeneration. The amount of GHG emissions for solar powergeneration is set at zero.

Monitoring parameters l Electricity imported from the grid (in grid connected areas)l Amount of diesel electric power generationl Amount of solar power generation

D. Eligibility criteriaThis methodology is applicable to projects that satisfy all of the following criteria.Criterion 1 For grid connected areas: All or a part of the volume of diesel electric power

generation and grid electricity consumption is substituted for by solar powergeneration.

For off-grid areas: All or a part of the volume of diesel electric power generationis substituted for by solar power generation.

Criterion 2 In addition to solar power generation systems, electricity control systems areintroduced in existing or newly constructed BTS. By the electricity controlsystems, electricity from solar power generation, diesel electric powergeneration, grid electricity consumption and electricity consumption fromstorage batteries are optimized and the volume of diesel electric powergeneration and grid electricity consumption of BTS are reduced.

Criterion 3 A lithium ion battery or a molten salt battery is adopted as a storage battery.Criterion 4 Maintenance and checking standards of major equipment, including the standard

of monitoring electricity consumption, are established and also the operationplan is established.

E. Emission Sources and GHG types

Reference emissionsEmission sources GHG types

Grid electricity consumption by reference BTS CO2

Combustion of fossil fuels for the operation of diesel power generatorsby reference BTS

CO2

Project emissionsEmission sources GHG types

88

Grid electricity consumption by project BTS CO2

Combustion of fossil fuels for the operation of diesel power generatorsby project BTS

CO2

F. Establishment and calculation of reference emissionsF.1. Establishment of reference emissions

For grid connected areas:During business as usual (BaU), the power for BTS is covered by grid power and supplementaldiesel electric power generation sources (during power outages). Reference emissions arecalculated under the assumption that all consumption is covered by grid power, in the interest ofsimplifying the calculations and keeping the net emission reduction results conservative.However, if the grid emission factor exceeds the emission factor from the supplemental dieselelectric power generation source, the emission factor from the supplemental diesel electricpower generation source is used instead, in the interest of simplifying the calculation of the netemission reduction and keeping the calculation results conservative. The emission factor usedfor diesel electric power generation is 0.8tCO2/MWh (figure for small-scale CDM methodologyAMS-I.A.).

For off-grid areas:During business as usual (BAU), the power for BTS is covered by diesel electric powergeneration. The emission factor used for diesel electric power generation is 0.8tCO2/MWh(figure for small-scale CDM methodology AMS-I.A.).

F.2. Calculation of reference emissions

Reference emissions are calculated by the following equation.

= , , ×

RE : Reference emissions during the period p [tCO2/p]EC , , : Electricity consumption of project BTS i during the period p [MWh/p]EF : CO2 emission factor for consumed electricity [tCO2/MWh] *1

Determination of ECpj,i,p

89

, , = , , + , , + , ,




*1 For factors applicable grid connected areas and off-grid areas, refer to “I. Data andparameters fixed ex ante.”

G. Calculation of project emissions

Project emissions are calculated by the following equation.

= , , × + , , ×


[MWh/p]*1

EF : CO2 emission factor for consumed grid electricity [tCO2/MWh]EG , , : Amount of diesel electric power generation of project BTS i during the

period p [MWh/p]EF : CO2 emission factor for diesel electric power generation [tCO2/MWh]*2

*1 In off-grid areas, grid electricity consumption (EC , , ) = 0*2 0.8 tCO2/MWh (figure for small-scale CDM methodology AMS-I.A.)

H. Calculation of emissions reductions

Emissions reductions are calculated as the difference between the reference emissions and theproject emissions, as follows:

= −

90

ER : Emission reductions during the period p [tCO2/p]RE : Reference emissions during the period p [tCO2/p]PE : Project emissions during the period p [tCO2/p]

I. Data and parameters fixed ex anteThe source of each data and parameter fixed ex ante is listed as below.

Parameter Description of data SourceCO2 emission factor for consumedelectricity. This parameter is used forreference emissions calculation.For grid connected areas:The lesser of the grid emission factorand the supplemental diesel electricpower generation source emissionfactor (refer to “For off-grid areas”below) is used.

For off-grid areas:Emission factor associated with dieselelectric power generation.

Grid emission factor:The most recent value available at thetime of validation is applied and fixedfor the monitoring period thereafter.The data is sourced from “EmissionFactors of Electricity InterconnectionSystems”, National Committee onClean Development MechanismIndonesian DNA for CDM unlessotherwise instructed by the JointCommittee.Diesel emission factor:0.8[tCO2/MWh], figure for small-scaleCDM methodology AMS-I.A.

CO2 emission factor for consumed gridelectricity. This parameter is used forproject emissions calculation.

The most recent value available at thetime of validation is applied and fixedfor the monitoring period thereafter.The data is sourced from “EmissionFactors of Electricity InterconnectionSystems”, National Committee onClean Development MechanismIndonesian DNA for CDM unlessotherwise instructed by the JointCommittee.

CO2 emission factor for diesel electricpower generation. This parameter isused for project emissions calculation.

0.8[tCO2/MWh], figure for small-scaleCDM methodology AMS-I.A.

91

Chapter 9 Quantifying Emission Reduction by the Project and Diffusion of Technology

9.1 Emission reduction by the project

This project assumes the system will be introduced to 30 BTSs. Following are the conditions(valuables), process and results of the calculation of projected emissions reduction of theproject.

(1) Conditions of calculationThe 30 BTSs to be worked in this project can be loosely categorized into three systemconfiguration groups, as shown in Table. 9-1.

Table 9-1: Conditions of facility configuration in projectA (15 stations) B (10 stations) C (5 stations)

BTS load 1.5kW 2.5kW 3.2kWPV 3kW 4kW 5kWBattery 30kW 30kW 30kWPower consumption 60kWh/day

BTS: 1.5kW × 24h =36kWhAir conditioning:2kW×12h=24kWh

96kWh/dayBTS: 2.5kW × 24h =60kWhAir conditioning:3kW×12h=36kWh

113kWh/dayBTS: 3.2kW × 24h =77kWhAir conditioning:3kW×12h=36kWh

Quantity of PV 21kWh/day3kW × 8.1h* ×efficiency 0.85

28kWh/day4kW × 8.1h* ×efficiency 0.85

35kWh/day5kW × 8.1h* ×efficiency 0.85

Quantity ofelectricity requiredfrom generator

39kWh/day 68kWh/day 78kWh/day

* Sunlight hours in Jakarta (refer to Chart 6-7)

(2) Calculation processThe calculation process is as follows (Chart 9-2 to 9-7).

92

Chart 9-2：PMS(input) A

JCM Proposed Methodology Spreadsheet Form (input sheet) [Attachment to Proposed Methodology Form]

Table 1: Parameters to be monitored ex post(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Monitoringpoint No. Parameters Description of data Estimated

Values Units Monitoringoption Source of data Measurement methods and procedures Monitoring

frequencyOther

comments

(1) ECgrid,i,p Electricity imported from the grid 0 MWh/p Option B Invoice from thepower company Data is collected and recorded from invoices from the power company. Every month

(2) EGdiesel,i,pAmount of diesel power generation of projectBTS i during the period p 14.24 MWh/p Option C Monitored data

Data is measured by measuring equipments in the BTS.- Specification of measuring equipments：　1) Electrical power meter is applied for measurement of diesel power generation amount. 2) Meter is certified in compliance with national/international standards on electrical power meter.- Measuring and recording：　1) Measured data is automatically sent to a server where data is recorded and stored.　2) Recorded data is checked its integrity once a month by responsible staff.- Calibration： Every year after the installation by a qualified agency.

Continuously

(3) EGsolar,i,pAmount of solar power generation of projectBTS i during the period p 7.67 MWh/p Option C Monitored data


Continuously

Table 2: Project-specific parameters to be fixed ex ante(a) (c) (d)

Parameters EstimatedValues Units

EFelec 0.00 tCO2/MWh

EFgrid 0.00 tCO2/MWh

EFdiesel 0.80 tCO2/MWh

Table3: Ex-ante estimation of CO2 emission reductionsUnits

tCO2/y

[Monitoring option]Option AOption BOption C

(f)

Other comments

(e)

Source of data

Grid emission factor:The most recent value available at the time of validation is applied and fixed for the monitoring period thereafter. The data is sourced from “Emission Factors ofElectricity Interconnection Systems”, National Committee on Clean Development Mechanism Indonesian DNA for CDM unless otherwise instructed by the JointCommittee.Emission factor for diesel electric power generation:Figure for small-scale CDM methodology AMS-I.A (0.8tCO2/MWh).

The most recent value available at the time of validation is applied and fixed for the monitoring period thereafter. The data is sourced from “Emission Factors ofElectricity Interconnection Systems”, National Committee on Clean Development Mechanism Indonesian DNA for CDM unless otherwise instructed by the JointCommittee.

Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)Based on the actual measurement using measuring equipments (Data used: measured values)

(b)

Description of data

CO2 emission reductions6

Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)

CO2 emission factor for consumed electricity. This parameter isused for reference emissions calculation.[For grid connected areas]The lesser of the grid emission factor and the supplementaldiesel electric power generation source emission factor is used.[For off-grid connected areas]Diesel electric power generation source emission factor isused.

CO2 emission factor for diesel electric power generation. Thisparameter is used for project emissions calculation.

Figure for small-scale CDM methodology AMS-I.A.

CO2 emission factor for consumed grid electricity. Thisparameter is used for project emissions calculation.

93

Chart 9-3：PMS(calc_process) A

1. Calculations for emission reductions Fuel type Value Units Parameter

Emission reductions during the period p 6.13 tCO2/p ERy

2. Selected default values, etc.CO2 emission factor for consumed electricity Off-grid area 0.800 tCO2/MWh EFelec

3. Calculations for reference emissionsReference emissions during the period p N/A 17.52 tCO2/p REp

Reference emissionsElectricity consumption of project BTS i during the period p Electricity 21.90 MWh/p ECJ,i,p

CO2 emission factor for consumed electricity Off-grid area 0.800 tCO2/MWh EFelec

4. Calculations of the project emissionsProject emissions during the period p 11.39 tCO2/p PEp

Project emissions

Electricity 0 MWh/p ECgrid,i,p

Off-grid area 0.000 tCO2/MWh EFgrid

Electricity 14.24 MWh/p EGdiesel,i,p

Electricity 0.800 tCO2/MWh EFdiesel

[List of Default Values]

Grid / Off grid tCO2/MWh Remarks

Jawa-Madura-Bali (JAMALI) 0.814

Sumatera 0.686 -

Khatulistiwa (Sistem Kalimantan Barat) 0.730 -

Barito (Sistem Kalimantan Selatan dan Tengah) 0.900 -

Mahakam (Sistem Kalimantan Timur) 1.030 -

Minahasa-Kotamobagu 0.532 -

Sulawesi Selatan-Sulawesi Barat 0.710 -

Batam 0.806 -

Off-grid area 0.800

Emission factor for diesel power generation 0.800

-

CO2 emission factor for consumed grid electricity

CO2 emission factor for diesel electric power generation

JCM Proposed Methodology Spreadsheet Form (Calculation Process Sheet)

[Attachment to Proposed Methodology Form]

Electricity imported from the grid at project BTS i during theperiod p

Amount of diesel power generation of project BTS i during theperiod p

94

Chart 9-4：PMS(input) B





frequencyOther

comments




Continuously



Continuously







tCO2/y









Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)Based on the actual measurement using measuring equipments (Data used: measured values)

(b) (e) (f)

Description of data Source of data Other comments

95

Chart 9-5：PMS(calc_process) B








Project emissions


Off-grid area 0.000 tCO2/MWh EFelec






Sumatera 0.686 -






Batam 0.806 -

Off-grid area 0.800


-







96

Chart 9-6：PMS(input) C





frequencyOther

comments




Continuously



Continuously







tCO2/y









Based on public data which is measured by entities other than the project participants (Data used: publicly recognized data such as statistical data and specifications)Based on the amount of transaction which is measured directly using measuring equipments (Data used: commercial evidence such as invoices)Based on the actual measurement using measuring equipments (Data used: measured values)

(b) (e) (f)

Description of data Source of data Other comments

97

Chart 9-7：PMS(calc_process) C








Project emissions


Off-grid area 0.000 tCO2/MWh EFgrid






Sumatera 0.686 -






Batam 0.806 -

Off-grid area 0.800


-







98

(3) Calculation resultsA (15 BTSs） B (10 BTSs） C (5 BTSs）

Estimated emission reductionper BTS

6tCO2/year 8tCO2/year 10tCO2/year

Total emission reduction perGroup

90tCO2/year 80tCO2/year 50tCO2/year

Total emission reduction ofthe project

220tCO2/year

9.2 Projected emissions reduction by assumed diffusion of technology

(1) Conditions of calculationThis system will be diffused and promoted as in the plan below, targeting the existing and newmobile communication’s BTSs in Indonesia.

ü Target marketi. Existing mobile communication’s BTSs in Indonesia:

approx. 120,000ii. New mobile communication’s BTSs in Indonesia:

approx. 15,000/year

ü Introduction plani. Assuming introduction to 5% of BTSs in the target market (i):

Introduction of approx. 6,000 systemsii. Assuming annual introduction to 3% of BTSs in the target market (ii):

Introduction of approx. 450 systems annually

This calculation assumes reduction of approx. 10 tCO2/year per system, as per 9.1 (3).

(2) Process and results of calculation

Conditions of calculation Results of calculationAssumes introduction to 5% of BTSs in thetarget market (i) (6,000 systems)

6,000 × 10tCO2 = 60,000tCO2/year

Assumes annual introduction to 3% of BTSsin the target market (ii) (approx. 450systems/per year)

450 × 10tCO2 = 4,500tCO2/year × no. of years

99

Quantity of emissions reduction after introduction of a part of existing mobile communication’sBTSs (6,000 stations) will be approx. 60,000 tCO2 annually. If introduced to a part of newfuture BTSs (450 stations annually), the emission reduction will be 4,500 tCO2 (approx. 4,500tCO2 more emissions reduction annually for the time being).

100

Chapter 10 Future Development – Policy Proposal to Advance JCM

(1) Introduction of project evaluation schemes with consideration to the potential fordiffusion in the host country

A BTS to which the Tribrid system, the subject of this feasibility study project, is to beintroduced consumes from tens of kWh to a hundred and several tens of kWh of energy per day.As per-site GHG emissions are not considerable, the introduction of the Tribrid system does notresult in a major reduction in per-site emissions. However, this superior technology is originaland developed in Japan, and has a good potential for diffusion. Furthermore, when taking intoaccount the technology’s other integrated advantages such as fuel cost reductions and reductionsof other burdens on the environmental, such as SOx and NOx; it is most likely to makecontributions in realizing a sustainable society in Indonesia. In fact, this feasibility study (FS)identified the extremely high expectations and desire for the Tribrid system in Indonesia.

As stated above, this project has so many benefits: superior technology and original productdeveloped in Japan; high diffusion potential; and contributions to realizing a sustainable societyin Indonesia. We hope this kind of project does not fail to be taken up as a JCM project due tothe GHG emissions reduction in per-site.

What we hope for, in specific terms, is the development of a comprehensive project evaluationscheme in which not only per-site emissions reduction effects but such other factors as thepotential for diffusion of the concerned technology and other emissions reduction effects whenthe technology has been diffused are evaluated. In addition, there is room for consideringanother scheme to evaluate effects other than GHG emissions reduction effects, for example,field fuel cost reduction effects and effects in regard to reductions of other environmentalburdens such as SOx and NOx.

(2) GHG emissions reduction effects in a JCM project to be used to achieve Japanesecorporation’s own GHG emissions reduction target

The quantity of the GHG emissions reduction recognized through the JCM is, at present,credited to both Japan and the host country as a contribution made to attain their respectiveemissions reduction targets.

The above scheme does not offer any return to an involved corporation for achieving itsemissions reduction target, though it has made contributions in GHG reductions throughdiffusion of the technology it owns and the products it makes. In order to offer a more

101

appreciative incentive to the Japanese corporations and promote their proactive involvement inthe JCM, one way would be to give the corporations a benefit in terms of achieving itsemissions reduction target.

For example, that “one way” would be the introduction of a scheme to allow a corporation touse the quantity of GHG emission reductions in host countries for achieving the corporation’sown GHG emission reduction target. For the Japanese corporations, who have activelypromoted and advanced the efforts to reduce such environmental burdens as the GHGs,considerably more efforts are required to keep realizing further reductions. Getting the GHGemissions reductions, recognized through the JCM, used to achieve the corporation’s own GHGemissions reductions may function as an incentive for them.

(3) Simplifying JCM process concerning a project involving small-scale multi-siteapplication

As discussed in (1) above, the Tribrid system, the subject of this project, makes only small-scaleper-site GHG emissions reductions. Moreover, Indonesia has numerous BTSs scattered acrossthe nation. As a result, the monitoring, getting a third party to implement validation, andverification of the quantity of GHG emissions reductions at each Tribrid system supported sitewill require considerable human and financial resources, which can actually become animpediment to introduction of the Tribrid system.

Therefore, the introduction of an option to simplify the process is desired: e.g. when multipleBTSs are in one area, one model BTS is selected for the third-party verification, or similaroption.

(4) Others – Advancing the project in respect to the host country’s policies

As discussed in Chapter 3; RAN-GRK Indonesia formulated in 2011 forms the core of thenation’s medium- and long-term developmental planning, reflecting RPJMN between 2010 and2014. RAN-GRK identifies six principle sectors: agriculture, forests and peat lands, energy,transport, manufacturing industry and waste management. It also places emphases on actionsother than GHG emissions reduction efforts such as flexible management of energy demand,protection of poor and vulnerable communities and support to strengthen policy frameworks.

In addition, in Indonesia, each province is to formulate a reduction plan matching the status ofeach region (RAD-GRK) based on the RAN-GRK. In line with the publication of national-levelper-sector emissions reduction targets, RAD-GRK stipulates that province-level per-sector

102

emissions reduction targets are to be published. However, in reality this approach lacks detail orspecifics.

This project is also aid action to support flexible management of energy demand, protection ofpoor and vulnerable communities and strengthening of policy frameworks. It can be said thatthe project matches Indonesia’s policy. To help implement the RAN-GRK, the JapaneseGovernment provides aid for Indonesia through JICA. However, in future, in light of the saidpolicy, it is desired to realize specific GHG emissions reduction projects in the respectiveprovinces supported by the superior and unique technologies and products of Japan.

103

Chapter 11 Executive Summary

In this project, research and examination was conducted to introduce KDDI’s Tribrid technologyat BTSs in Indonesia, either in off-grid or grid connected areas, and to maximize the project’spotential in Indonesia and its emissions reduction effects.

Four specific major aspects investigated were:

l Locations and environment of trial sites for implementing the projectl Establishment of the MRV methodology to calculate emissions reductions and calculation

of emissions reduction potentiall Review and formulation of future project planl Policy proposals concerning JCM

As discussed in Chapter 6, concerning the locations and environment of trial sites forimplementing the project, field inspection trips were made, and, after discussions with HuaweiServices, 30 candidate sites were selected based on such factors as the electricity supply system,geographical conditions and system configuration.

In regards to MRV methodologies, firstly, four options of MRV methodologies to be consideredfor this project were selected. Following a hearing of local experts and other factors, it becameclear, out of the four options, the simplest methodology was the most suitable one. Thecalculation of emissions reduction potential was done based on that methodology.

In regard to project planning, the average reduction of fuel costs calculated based on the actualdata from the 30 trial candidate sites was reviewed against the duration needed to recover theinvestment desired by local operators. The results indicated the amount of budget needed tointroduce a Tribrid system that could realize the duration of investment recovery (three years)desired by local operators.

Policy proposals based on the outcome of this study are discussed in Chapter 10: “Introductionof project evaluation schemes with consideration to the potential for diffusion in the hostcountry”; “GHG emissions reduction effects in a JCM project to be used to achieve Japanesecorporation’s own GHG emissions reduction target”; “Simplifying JCM process concerning aproject involving small-scale multi-site application”; and “Others – Advancing the project inrespect to the host country’s policies.”

Indonesia still needs to improve the availability of commercial supply of electricity to BTSs in

104

rural and other areas. Initiatives to offload traffic using such technologies as femtocell havealready begun in Indonesia. Meanwhile, electricity demands at BTSs keep increasing owing toexpanding smartphone usage and increasing data traffic speed.

Although some attempts at PV-powered hybrid technology have been made, those products’performance is less than sufficient owing to quality of installation work, budget, etc., strugglingwith the reality.

Furthermore, although Indonesia has many production plants and a large volume of moldedproducts sold, supported by its large population (the 4th largest in the world); there are a fewR&D institutions; lacking the ground to grow advanced ideas like the Tribrid and to developprogram-based solution systems.Against the backdrop of the said circumstances in Indonesia, it became clear through this studythat the advanced pioneering Tribrid technology, whose R&D has been supported byhigh-performance products, the most cutting-edge technological information and superior workquality and whose functions have been tried and proven, attracted a very high level of interestand expectation from the telecommunication service operators and tower lease firms inIndonesia.

global warming mitigation technology promotion project feasibility

Documents