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Reports of CDM/JI Feasibility Studies: FY2004

Title of the researchMunicipal Solid Waste to Energy Project in Sidoarjo, Indonesia
FYFY 2004
Main research organizationPacific Consultants International
Research partner(s)Pacific Consultants Co., Ltd., DNV, IMW, YBUL, PT Surveyor Indonesia
Location of the projectSidoarjo regency, Republic of Indonesia
Summary of the research report (PDF)200406.pdf(390kb)
Description of the projectThe Project contributes to i) alleviation of greenhouse gases (GHG) and other air pollutants, ii) improvement of local environmental conditions, and iii) sustainable development of the host country. Above objectives are achieved by a) introducing an environmentally sound waste incineration technology to the Project site (Sidoarjo regency, East Java province) where municipal solid wastes (MSW) are currently open-dumped in an unmanaged manner, and b) replacing and reducing the amount of fossil fuels used in the thermal power plants connected to the national grid.
GHGCH4, CO2
Sector of the projectWaste Management
CDM/JICDM
Duration of the project activity/ crediting periodCrediting period: 14 years (from 2007 to 2020)
Baseline methodology/additionalityBased on the proposed baseline methodology, the baseline scenario reads as "no MSW management facility is established in Sidoarjo that avoids methane emissions, and MSW in Sidoarjo continues to be open-dumped at landfill sites as being done currently," and "the existing power plants continue the current operation" and the power generated at the Project plant is negligible compared to the total power supplied to the grid (emission factor is Operating Margin).
Additionality of the Project is assessed and justified by demonstrating the following two points stipulated in the CDM Modalities and Procedures, paragraph 43:
- Project scenario is not the same as baseline scenario, and
- Project emission is less than baseline emission
Estimation of GHG emissionsTotal amount of GHG emissions reduction during the 14-year crediting period is estimated to be 1,869,714 tons (carbon- equivalent). Emissions reduction is estimated to increase by time as indicated in the table below.

Baseline GHG emissions are calculated as a sum of baseline emissions from avoided MSW disposal (First Order Decay model is used for calculation) and baseline emissions of grid-electricity (operating margin is used for emission factor calculation).
Project GHG emissions are the sum of emissions from burning fossil-fuel origin products in the power plant and emissions from fossil-fuels consumption for the Project. Fossil-fuels consumed for the Project include the diesel fuels used for the plant start-up, and diesel fuels for trucks that deliver MSW and clinkers.
No leakage is found for the Project.
Monitoring methodologyPT. IMW, the Project developer in Indonesia, conducts monitoring activities.
In accordance with the proposed monitoring methodology, following items are monitored: Amount of MSW to be incinerated, Fraction of plastics in MSW to be incinerated, Diesel oil used for the Project, Electricity supplied to the grid, Emission factor for OM, Degradable carbon fraction in the MSW, Decay rate, Fraction of DOC that actually degrades, and Regulatory requirement relating to landfill gas.
Monitoring methods include meter monitoring, sampling and analysis in laboratory, and collection of statistical data.
Environmental impactPT. IMW will conduct an environmental impact assessment (called AMDAL) from March 2005. Thermal converter incinerator to be introduced under the Project is expected to produce some residues after incineration. However, they are very little in amount, and do not contain any harmful substance and thus can be reused in various ways such as road pavement and construction materials. Moreover, the incinerator employs extremely high temperature that is sufficient enough to prevent any hazardous emissions including dioxins.
In addition, a stakeholders meeting was held in August 2003, where personnel from PT. IMW, local residents, and local government officials agreed on social and environmental issues such as local employment and environmental impact mitigation measures.
Issues and tasks for project implementationProject costs to be incurred will be borne by PT. IMW, which is currently considering the application of the Belgium loan scheme called "Foundation Universal Connection."
Japanese side is responsible for all CDM-related activities of the Project as well as CER purchase from Indonesia.
IMW is the main and sole entity responsible for operation and management of the Project plant. PT. IMW will sign the contract with the plant supplier from UK, WES Ltd., over plant maintenance and support programs for over ten years. Also, IMW receives MSW and the Project land from Sidoarjo government.
IMW and PLN (state-utility) are expected to sign the Power Purchase Agreement (PPA) by June 2005 over the electricity that is generated by the Project plant.

ValidationDesk review was executed by DNV in February 2005 and three corrective action requests (CAR) were issued. CAR1: The Project has not been approved formally by Indonesia and Japan. CAR2: The Project has not had a statement stipulating modalities of communication with the Executive Board in terms of CER issuance and allocation instruction. CAR3: Baseline and monitoring methodologies have not been approved by the CDM Executive Board.

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