ECONOMIC ANALYSIS OF HSD CONVERSION TO MFO AS DIESEL POWER PLANT FUEL: CASE STUDY OF PESANGGARAN DIESEL POWER PLANT OF INDONESIA POWER BALI GENERATION BUSINESS UNIT

• Main Author: INDRAMAULANA (NIM: 29107175) , GINANJAR
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/12154
• Institution: Institut Teknologi Bandung

PT. SRT is a subsidiary of PT. PLN (Persero) operating in the power generating business particularly in Bali island region. PT. SRT with total installed capacity 432.67 MW consist of Pesanggaran Diesel Power Plant (DPP) (75.82 MW), Pesanggaran Gas Turbine Power Plant (GTPP) (125.45 MW), Gilimanuk GTPP (133.8 MW) and Pemaron GTPP (97.6 MW). Currently PT. SRT in securing electricity supply mainly in Bali island as a world tourism destination face some important business issues such as all power plants are oil utilization power plant, high growth demand, primary energy sources problem which are natural gas supply availability problem and rising of oil price, tariff regulation. Following the hike of oil price, that high growth electricity demand has to fulfill by high generating cost of oil based power plant. The root of problem cause such business issues is the high oil price (high speed diesel/HSD), considering fuel cost is a key component in electricity generating cost of diesel power plant.<p>Possible alternative solutions for PT. SRT to supply sufficient and reliable electricity by reducing generating cost effort are through fuel conversion program and efficiency drive program at Pesanggaran DPP and other generation units (gas-based power plants), demand side management in customer side and government contribution in domestic market obligation (DMO) of natural gas for PLN's and subsidiaries power plant using from HSD to marine fuel oil (MFO) or so called MFOnisation is the main solution to cope with these business issues due to MFO price has Rp 939.40/liter cheaper than HSD price and availability of MFO to supply Bali region rather than gasification of PT. SRT's power plant.<p>This final assignment is focused on the MFOnisation at Pesanggaran DPP as a case study of MFOnisation at PT. SRT due to Pesanggaran DPP is oilbased power plant while other generation units are gas-based power plant which forces to utilize oil. MFOnisation technically can be done by additional of MFO fuel system facility, MFO treatment module and MFO heater system. Function of equipment addition is making MFO fuel specification almost equal to HSD fuel specification when that fuel (MFO) pumped to diesel engine. This MFOnisation project is required an investment to modify and install MFO system to existing HSD system. Therefore, economic analysis has to conduct on this MFOnisation project. The results presented that investment is economically viable. At the base case, the project yields Internal Rate of Return 34.62 per cent and net present value Rp 39.90 billion at discount rate 15 per cent with 33.2 per cent power plant capacity factor and can achieve net fuel saving/kWh Rp 286.70/kWh. Base on sensitivity analysis, significant factor affecting to the viability such as fuel price difference between HSD and MFO (in this case is fuel saving/kWh because SFC between HSD and MFO are slightly different) and projection of electricity production needs to consider when MFOnisation power plant investment want to conduct. <br />