Global Energy Management System Implementation:

Case Study
Indonesia

Company Profile
PT. Indonesia Power PT. Indonesia Power (IP) is one of PT. PLN (Persero)
By implementing EnMS, 3,21% energy subsidiary which focuses on power generating,
saving has been achieved every year Operation & Maintenance (O&M) services and related
services. Currently own 8.155,06 MW of power plant,
varied from coal fired, gas fired combined cycle, hydro
power and geothermal power. Also operates 6.016,5
MW power plant as O&M Services Provider. Operation
area span throughout Indonesia, from North Sumatera
(PLTU Pangkalan Susu) to West Papua (PLTU Holtekam).

Case Study Snapshot

Industry Electric Power

Generation
Suralaya Power Station, the biggest coal power plant
complex in Indonesia Product/Service Electric power and
related services

Business Case for Energy Management Location Indonesia

As stipulated in Indonesia’s Government Regulation no Energy Management System ISO 50001

70 Year 2009, every corporation whose annual energy
consumption equals or more than 6 thousand TOE, is Energy Performance 1 year
Improvement Period
obliged to conserve energy through energy
management. IP annual energy consumption is Energy Performance 3,21%
8,014.29 thousand TOE, thus it is obliged to implement Improvement (%) over
energy management system. improvement period

Environmentally, it is also required for every corporation Total energy cost savings over 37,53 Million USD
in Indonesia to manage energy as part of natural improvement period
resource that is annually monitored through PROPER
Cost to implement EnMS 0,96 Million USD
(Program for Assessment of Company’s Performance
Rating in Environmental Management). PROPER is a Payback period on EnMS 0,0255
prestigious annual award that is conducted by Ministry implementation (years)
of Environment and Forestry. Considering its high
importance, IP established PROPER as Key Performance Total Energy Savings over 14.100.801,94 GJ
improvement period
Indicator (KPI) of Management and declared energy
efficiency on its Policy. Total CO2-e emission 1.332.525,78 MT
reduction over improvement
period

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 Global Energy Management System Implementation: Case Study

Indonesia

IP currently is the largest power producer in Java Bali program ownership throughout every level of IP
System with 8.230 MW installed capacity, as well as employee.
O&M Services Provider with 6.016,5 MW managed
By implementing EnMS through 5E, IP’s has reduced its
capacity in 18 power plants.
energy consumption by improving 3,21% power plant
heat rate through execution energy saving ideas.

With tough competitive atmosphere, IP struggle to Financially, the improvement gained from EnMS has
maintain market share in Java-Bali Electricity System and reduced IP’s energy cost as much as 37,53 Million USD
O&M Services Market. One key factor to win the market per year.
is competitive electricity price, could be approached with
Implementation of EnMS has also risen employee
fuel price reduction, fuel consumption reduction and
awareness on energy and encouraged employee to
O&M Cost reduction.
innovate not only in the scope of Significant Energy Uses
To be ahead in the competition, IP established several (SEU) but also in the larger production system. For
initiatives, one of them fuel consumption reduction example, innovation on condition based soot blowing
through Energy Management System. has been successfully reduced flue gas temperature,
increase main steam flow and increase production
“Clean And No Leakage has been our drive in simultaneously.
electric power generation business. In this
tough competition, Energy Management
System through 5E program enables us to be EnMS Development and Implementation
more competitive and ultimately secure our Policy
business sustainability” The first significant energy efficiency initiatives in IP is
—Eri Prabowo, Operation-1 Director
launched in 2010 when company initiated the Efficiency
Management framework in all IP’s power plant. The
Business Benefit Achieved efficiency management framework is a solid background
for succesful EnMS implementation. To perfect the
PT. Indonesia Power (IP) is one of PT. PLN (Persero) which
EnMS, IP then implement 5E to complement the well
successfully implemented Energy Management System
established Efficiency Management framework.
(EnMS) ISO 50001. As the largerst electric power
producer in Indonesia IP must set a benchmark company Realizing further energy saving could be achieved, in
for EnMS implementation. 2016 IP started to implement EnMS based on ISO 50001.
By the time IP already have 10 certified energy auditor
EnMS implementation has been used as one approach by
and 15 energy manager for all power plant sites.
IP to achieve its Net Plant Heat Rate Key Performance
Indicator. Another upcoming Key Performance Indicator Currently energy audit is conducted by internal energy
is Performance Based Regulation (PBR) which will auditor and external energy auditor as complement.
determine the energy saving and ultimately electric EnMS is now become Management Policy as well as
energy subsidies from the government of Indonesia. Sustainability Policy.
IP’s specific approach in implementing EnMS is by Following the policy, Energy Management Team (Figure
utilizing a method called 5E (Enhancing and Embedding 1) was then formulated; serial trainings and awareness
Energy Efficiency Excellence). The emphasis of 5E are launched both in executive and working level.
approach beside improving power plant efficiency is
nurturing the energy saving culture and energy saving

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Top Management appointed a Certified Energy Manager Do

to manage energy and implementation of EnMS in IP’s Energy action program is then created to mainly improve
power plants. Energy Manager is supported by energy performance of energy conversion in the coal
Operation, Maintenance and Engineering Manager. In power plant, such as turbine and boiler.
each site Management Representative(s) is appointed.
The Energy Management Team involves personnel cross- Since turbine and boiler is a complex equipment and
departmentally to ensure the expertise required is the performance change in one component will affect
covered and well represented. other component performance, the process in
formulating efficiency improvement idea shall be done
with systematic process. The formulation process started
from data collection to real time monitoring in Energy
Efficiency War Room. In this framework, data is validated
from the collection process to ensure the idea generated
from valid data thus would result as expected.

Electricity
1.83%

Gas
32.46%
Figure 1 Energy Management Team

Plan
Prior to set energy objective, target and program, energy HSD
0.49%
review was conducted to identify energy consumption & Coal
65.09%
use, significant energy use, energy saving potential etc. HFO
0.14%
The energy review was also taking into account the
energy audit done by internal energy auditors and
Figure 2 IP Energy Consumption
Certified Energy Service Company.
HSD Electricity
The review covered also energy related regulation and
0.10% 2.02%
standard applied to IP.
Coal
IP like any other electric power generation companies, is 97.88%
an energy intensive company with annual energy
consumption of 8,014.29 thousands TOE per year. This
energy is used for energy conversion and auxillary for
power generation process and operation & maintenance
process from varied source, from coal, gas, fuel oil and
electric power (Figure 2). From energy review, it is
understand that coal power plant used the most energy Figure 3 Energy Consumption in Coal Power Plant
and thus coal consumption is SEU in coal power plant
Then energy saving idea generated from collaborative
with 97.88% energy consumption (Figure 3).
process through idea generation workshop. During this
process idea is refined, prioritized and syndicated
through Idea Charter. Then the result of idea execution

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is monitored in real time in the Energy Efficiency War System, meetings are established periodically, i.e. daily
Room. The whole process resulted both in energy meeting, weekly meeting and monthly meeting. Daily
efficiency improvement and personnel awareness, since meeting is very necessary at the time of initial set-up,
the process is done collaboratively. This one one used for coordinating the daily activities of the internal
advantage of our implementation method (Figure 4). team unit and the central team. If this efficiency program
has been running well, the daily meeting is conditional to
Check intensify ideas discussion that will or being implemented.
To ensure all process described in Figure 4, IP established
systematic business process that will ensure all issues Participants of the daily meeting are internal Team, Head
regarding energy efficiency addressed and processed. Office Team, internal expert and external expert. The
This process is also integrating real time plant operation, weekly meeting discusses the data Monday to Sunday
plant performance evaluation to execution and last week, as well as discussion of the progress of current
evaluation (Figure 5). This business process covers issues and new corrective action and efficiency improvement.
in plant modification and operating procedures as well. The participant of weekly meeting are operator,
maintenance technician, engineering and laboratory
technician.

1. Efficiency 2. Efficiency 3. Energy Monthly meeting is a management meeting, where

Data Data Audit presented the progress of the program implementation,
Collection Processing •Losses as well as the impact achieved. The participant of the
•Data Collecting •Performance Validation
•Data Validation calculation •Baseline monthly meeting are General Manager and Managers.
•Heat balance Validation
calculation •Identification of To fulfill competence of personnel, IP identifies training
saving potential
matrix which covers management and personnel driver
to SEU. Both energy manager and energy auditor are
Certified Energy Manager and Certified Energy Auditor
4. Analysis, 5. Idea issued by the National Profession Certificate Body.
Identification & Generation
Recommendation Regular coaching to power plant personnel is conducted
•Corrective Action
•Heat Rate Gap Analysis •Efficiency regularly to ensure thorough understanding and
•Variabilty Analysis Improvement awareness.
•Auxiliary Power Gap Analysis
•Root Cause Analysis

6. Idea 7. Efficiency
Execution Control
•Idea Charter •Energy Efficiency
•Idea Tracker War Room

Figure 4 Scope and step of Energy Management System

implementation

To ensure the achievement and acculturalization both of

the program execution and Efficiency Management Figure 5 Efficiency Management workflow

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Awareness of employee on energy is risen through serial calculation add-in, heat rate root cause diagram and
coaching, broadcasts and training in parallel with Green corrective action identification guideline. To ensure
Power Plant Program. correct implementation, IP’s thermal efficiency specialist
developed detailed Energy Efficiency Enhancement
Guideline Book. The guideline now is used widely
throughtout the company.

Recommended action then combined with heat rate

conversion to have program and heat rate contribution
tracking. The example of corrective action and efficiency
improvement recommendation on coal-fired power
plant in heat rate contribution (in kCal/kWh) shown in
Table 1.

These corrective action and efficiency improvement

recommendation periodically monitored in several
meetings in the power plant. The monitoring process is
one of the crucial process to ensure the success of the
Efficiency Management System.
Figure 6 Energy Efficiency Coaching
The total saving from idea execution in coal power plant
Action approximately 37,53 Million USD per year (as per 2016)
After executing all frameworks from data collection, data and contribute to 3,21% plant heat rate saving (Table 2).
processing, analysis & identification, recommendation,
Table 1 Example of corrective action and efficiency improvement
execution and evaluation, two main results obtained, i.e.
recommendation on coal-fired power plant #1
the waterfall diagram and program execution. From the Corrective action and efficiency improvement Saving
waterfall diagram example from one of coal fired power recommendation (kCal/kWh)
Operations on the main rated steam pressure 169 kg / cm2 3.817
plant as shown in Figure 7, the losses could be
Operation at rated steam pressure around 169 kg / cm2 8.025
determined from the red sections, which indicated the Combustion optimization to reduce the temperature of flue 8.512
performance gap from the baseline and actual. gas output and minimize water spray to eliminate losses
DERH (A / F ratio, mill outlet temp., CAD / HAD setting)
Combustion Optimization to lower the output temperature 11.177
of flue gas and water spray to minimize losses DERH (A / F
ratio, mill outlet temp., CAD / HAD setting)
Repair coal fineness through the better operation of 19.860
classifiers / dampers
Changing the primary source of supply of steam towards 42.39
BFPT originally from Aux. Steam Extraction Steam Header
changed to # 4 on partial load (Unit 1)
To control the operation of the main steam pressure based 26.94
design (16.7 MPa)
Control the operation of the main steam temperature 15.84
Figure 7 Example of waterfall diagram from coal fired power plant based design (540 C)
Control operation based on the design of hot reheat 15.17
temperature (540 C)
The next task is to determine action to solve the losses. Optimizing the operation of tilting burner 13.42
For this IP has developed several tools to help the Looking for the operation of air fuel ratio for optimal 13.42
combustion in the boiler
efficiency engineer determine corrective action. The Optimizing soot blowing operations to lower the flue gas 3.95
tools used e.g : tool for calculating performance using temperature of 154oC to 150oC
Microsoft Excel equipped with steam property

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Table 2 Total heat rate saving from idea execution the power plant energy conversion performance and
Saving Heat
Power Plants
Ideas
(USD
Saving
Rate widely used in power generation industry.
Executed (kCal/kWh)
Mi/year) Saving
PLTU Suralaya 19 2.93 9.17 0.36% “Energy Management System has proven to
PLTU Lontar 22 5.09 91.00 3.39%
PLTU Labuan 3 0.41 6.91 0.25%
be beneficial to company performance and
PLTU Suralaya 6 4.67 75.75 2.61% would be a competitive edge for long term
PLTU PalabuhanRatu 112 24.43 253.56 9.43%
Total 162 37.53 436.39 3.21% company sustainabilty”
—Mochamad Soleh, Certified Energy Auditor

Based on the energy saving benefit above and cost

required to implement EnMS, IP has established very Lessons Learned
high cost and benefit ratio (3.163.52%) thus gives
 The large number of parties to be coordinated in the
payback period in 0,032 year.
process of completion of the project requires good
Implementation of EnMS has improved energy communication and coordination
performance of IP since Year 2011 when it is start  Implementation of EnMS has ensured alignment with
implemented. Although year to year comparison shows Company policy and supports the achievement of the
declining of thermal efficiency, but long term trend Company's Long Term Plan.
shows improvement.  To overcome the obstacles that arise during the
process of defining the solution shall be taken from
34.10 appropriate scientific references and tools.
34.00  Detailed planning process in carrying out a EnMS
implementation project is essential to ensure the
33.90
project done well. In this case the preparation of
33.80 schedules, resource management and coordination
33.70 of the execution.
33.60 Keys to Success

33.50  Leadership and commitment.

2011 2012 2013 2014 2015  Employee awareness on energy efficiency
 Intensive communication across department and
Figure 8 IP Energy Efficiency Performance (in thermal efficiency, %) function
IP uses Thermal Efficiency (in %) or Heat Rate (in  Well established Asset Management framework and
other standard (ISO 14001, OHSAS 18001, ISO 55000,
kCal/kWh) as energy performance indicator as it shows
etc)

Through the Energy Management Working Group (EMWG), government officials worldwide share best practices and leverage their collective
knowledge and experience to create high-impact national programs that accelerate the use of energy management systems in industry and
commercial buildings. The EMWG was launched in 2010 by the Clean Energy Ministerial (CEM) and International Partnership for Energy Efficiency
Cooperation (IPEEC).

For more information, please visit www.cleanenergyministerial.org/energymanagement.