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Paradongan HT, Hakam DF, Wiryono SK, Prahastono I, Aditya IA, Banjarnahor KM, Sinisuka NI, Asekomeh A. Techno-economic feasibility study of solar photovoltaic power plant using RETScreen to achieve Indonesia energy transition. Heliyon 2024; 10:e27680. [PMID: 38586405 PMCID: PMC10998000 DOI: 10.1016/j.heliyon.2024.e27680] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Key Words] [Track Full Text] [Figures] [Journal Information] [Subscribe] [Scholar Register] [Accepted: 07/21/2023] [Indexed: 04/09/2024] Open
Abstract
Indonesia, a key player in the global energy transition, faces surging electricity demand and ambitious renewable energy goals. In response, the government introduced a new regulation about renewable energy tariffs, including tariffs for photovoltaic (PV). However, there remains a gap in the academic literature regarding PV power plant feasibility studies under these tariffs. To address this gap, this study investigates the feasibility of a utility-scale solar photovoltaic (PV) power plant in Indonesia, focusing on the newly implemented renewable energy tariffs based on Independent Power Producers (IPPs) and Indonesia's state-owned electricity company (PLN) perspectives. Five scenarios were developed based on the proposed 26 MW solar power plant on Nias Island utilizing RETScreen software. The results showed that based on the IPP perspective, the newly implemented renewable energy tariff was inadequate to make the project feasible, however, an introduction of a 10 USD/t CO2 emission incentive would make the project financially viable for IPPs. Therefore, it is recommended to introduce emission incentives as a strategic approach to attract investors and stimulate investment in Indonesia's PV power plants market, to accelerate Indonesia's energy transition. Conversely, the results also showed that the project is very profitable for PLN due to the significant cost-savings from the de-dieselization, leading to a reduction in the average generation cost for Nias.
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Affiliation(s)
| | - Dzikri Firmansyah Hakam
- School of Business and Management, Bandung Institute of Technology, Bandung, 40132, Indonesia
| | - Sudarso Kaderi Wiryono
- School of Business and Management, Bandung Institute of Technology, Bandung, 40132, Indonesia
| | - Iswan Prahastono
- PLN Research Institute, PT PLN Persero, Jakarta, 12760, Indonesia
- School of Electrical Engineering and Informatics, Bandung Institute of Technology, Bandung, 40132, Indonesia
| | - Indra A. Aditya
- PLN Research Institute, PT PLN Persero, Jakarta, 12760, Indonesia
| | - Kevin M. Banjarnahor
- School of Electrical Engineering and Informatics, Bandung Institute of Technology, Bandung, 40132, Indonesia
| | - Ngapuli Irmea Sinisuka
- School of Electrical Engineering and Informatics, Bandung Institute of Technology, Bandung, 40132, Indonesia
| | - Ayodele Asekomeh
- Aberdeen Business School, Robert Gordon University, Aberdeen, AB10 1FR, Scotland, UK
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