THE FEASIBILITY OF GEOTHERMAL POWER PLANT IN INDONESIA (CASE STUDY: 165 MW OF NGEBEL GEOTHERMAL POWER PLANT)
The Ngebel Geothermal power plant is projected to use Flash Steam System. Thus, based on Table-3, the total capital cost of Ngebel Geothermal power plant would range from US$ 324,967,500 – US$ 519,750,000 (see Appendix B Section-1 for detail calculation).
4.2.2 Connection Cost The connection cost of the project is based on the transmission line cost and the station equipment needed to supply the electricity produced into the grid system. As described in previous chapter, according to the location map, the required transmission line is estimated 30 – 40 km. According to Willis & Scott (2000), the transmission cost can vary from $ 1 /KVA-mile for low capacity (46 kV with 50 MVA of capacity) to $ 0.5/kVA-mile for double circuit of high capacity (500 kVA with 2,000 MVA of capacity). As Java-Bali Grid using 500 kVA double circuit transmission system, and with 165 MW of geothermal power capacity (equivalent with 194 MVA if using power factor 0.85), then the total transmission line cost for the proposed project would range from US$ 3,483,333 - US$ 4,033,333. Added by about US$ 2,152,174 of station equipment cost, the total connection cost is estimated US$ 5,635,507 – US$ 6,185,507 (see Appendix B Section-2 for detail calculation).
4.2.3 The Net Revenue (after annual cost) As the final product of the project is electricity, the net revenue of the proposed project is derived from the total electricity selling after annual cost. Due to the technical evaluation, the total electricity produced by Ngebel Geothermal power plant is approximately 1,235,817 MWH. By the power purchase agreement (PPA) for geothermal is 9.7 cUS/kWH and annual cost calculation in previous section, the estimation of net revenue of the project would be US$ 64,287,200 /year. (see Appendix B Section-4) Parameter Unit Ngebel Project Production MWH/year 1,235,817 PPA US$/kWH 0.097 Gross Revenue US$/year 119,874,249 Annual cost US$/year 55,587,049 Net Revenue US$/year 64,287,200
Table-4: Net Revenue of the project
5. CONCLUSION AND RECOMMENDATION 5.1 Conclusion From previous evaluation, it can be concluded that the 165 MW of Ngebel Geothermal Power Project using Flash Steam System has great prospect to be deployed due to its technical feasibility, attractive economically, social benefits, and emission reduction. Economically, the evaluation shows that the project has competitive and profitable prospects, including relatively short cost recovery, low levelized cost of energy (LCOE), the positive NPV, and relatively high internal rate of return (IRR). In social aspects, the project is expected to provide some benefits for the local community, including job opportunities and corporate social responsibility (CSR). Environmentally, the project has capacity to reduce the carbon emissions produced by electricity sector in Indonesia, with the potential reduction at approximately 849,266 tonnes per year.
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