9 November 2009

Tough Choice: Hardware Quality or More MHP schemes

Development of micro hydro power (MHP) in Indonesia is so far encouraging. Encouraging in the sense that there are more and more MHP applications in Indonesia implemented by government institutions such as the local energy offices at the provincial or district level, the Ministry of energy and mineral resources, the Ministry of disadvantaged areas and other national or local programs.

The consequence of this is the increasing demand for better MHP hardware especially for turbine and control equipment. It is also necessary in to also have qualified expertise in MHP planning. MHP construction is not as easy as installing solar home system (SHS). Planning is the key element of a good MHP scheme. Once wrong planning is implemented, it will be fatal later on. Related to hardware issue, there are still some questions: how many producers are there in Indonesia? how good their products are? can they provide for hardware MHP demand? how important the hardware quality for the project owner? and many other questions. These questions ultimately come down to one important question: is the quality a priority?

High quality in general can be interpreted as reliability, durability, good performance, and usually also means higher price. high quality of workmanship demands a good production method, the skillful labor, and of good working tools. high quality can also be associated with more complicated production process that it eventually could encourage an increase in the level of hardware technology. This can further encourage research in the specific topic.

With the strong government's determination to increase the electrification ratio by using renewable energy, then there is a tendency to carry out as many MHP projects in Indonesia, especially in remote areas that are not electrified by PLN. if planning is not a problem, in the sense that they are done well and correctly, then the next question is the selection of hardware. Is quality hardware needed or not? There are no simplified answer for this, because there are consequences that must be accepted and there are sacrifices that must be taken. There are some aspects that might be influenced by the choice of hardware.

The first aspect is the sustainability of MHP. MHP will be eventually damaged if not properly maintained properly. Based on the assumption that good maintenance is performed by qualified personell, the equipment will operate better and only need spare part replacement after a longer period. this means that the risk of break down is also less and eventually it will improve the sustainability of MHP scheme.

The second aspect is the issue of MHP service. Based on the assumption that water resources available at design rate, higher quality hardware will produce more electrical energy (kW). High output means more people can be served or service levels can be improved (watts per house for example). It will open more economic potential for the people. Other than that, generally the quality of electrical energy generated is also better so as to enhance the level of the MHP service quality.

The third aspect is the potential of monopoly and limited production capacities. By not disparaging other MHP turbine manufacturers in Indonesia, producers in Bandung are in the front line of quality. Although not all producers in Bandung are strictly apply the principle of quality, but generally in terms of work quality and hardware performance, they are much better. If all are requesting hardware from Bandung, then there will be a big production pressure for them. This condition can lead to two negative things: potential of monopoly and lower hardware quality due to shorter time in the production process. The first potential negative impact will eventually affect other producers in Indonesia, they can not develop and improve their production skill.

The fourth aspect is the after sales service. A good after-sale is responsive and quick. it can be achieved if there is a representative of the manufacturer in the area or the producer himself in the area. After sales will be a bit problematic if the manufacturer is located quite far from the user. MHP hardware products are not OTC products. They are customized to client’s need. They are not mass product and the market is very specific. Having a representative in all areas will be just very expensive to the small scale manufacturers in Indonesia. It is therefore, more manufacturers all over Indonesia might be a good solution for better after sales service.

to be continued.....

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