GEOTHERMAL DEVELOPMENT STRATEGY FOR EASTERN INDONESIA

• Main Author: Fabian Moningka, Milki
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/36963
• Institution: Institut Teknologi Bandung

Geothermal energy in Indonesia is generally used to meet electricity needs. Most regional electrification ratios in Eastern Indonesia are still below the national average, which illustrates that the demand for electricity in the region is still high. The electricity transmission infrastructure in East Indonesia is not yet fully available and well integrated compared to the conditions on the islands of Sumatra and Java so that the utilization of geothermal energy has not been able to be carried out optimally. The readiness of the transmission system will affect the electricity supply-demand factor which will determine the model of geothermal resource development for electricity so that the development is carried out as needed. In this study an economic feasibility study was conducted on several strategies for developing geothermal resources for the supply of electricity in Eastern Indonesia. The development strategy used is the development of small-scale units of plants in stages and on a large scale. The development of small-scale units will use the type of wellhead power plant while the development of large-scale units uses central power plant. The type of wellhead plant can be used only from one production well and the central plant requires more than one production well. The production hypothesis for each well used is 5 MW. There are three development strategies that will be assessed for their feasibility, namely the development of 5x5 MW, the development of 2x5 MW + 1x15 MW, and the development of 1x25 MW. The economic indicators used in assessing the feasibility of development strategies are Net Present Value (NPV) and Internal Rate of Return (IRR). Besides using economic indicators to see feasibility from the viewpoint of the project developer (as a seller) it is also seen from the side of the price of electricity that can be purchased by PLN in accordance with the regulations because of the regulation of the maximum price that can be purchased. The results obtained indicate that in each incremental addition of small units the selling price of electricity will decrease because the financing of the new unit is not as large as the cost of building the unit at the beginning. If the 16% IRR is considered to fulfill the wishes of geothermal developers in Indonesia, the electricity selling price of the 5x5 MW strategy is 19.0 UScent / kWh, 2x5 MW + 1x15 MW is 19.7 UScent / kWh and 1x25 MW is 14.8 UScent / kWh. Calculation of price efficiency concludes the feasibility of each development strategy in the Eastern Indonesia region based on the maximum purchase price of 20 UScent / kWh. Development of small units in stages is feasible to be implemented by offsetting the development of electricity infrastructure as demand increases. The beginning of the large-scale unit’s development was not suitable to be applied in Eastern Indonesia given the inadequate electricity infrastructure. The addition of large-scale units is intended to adjust the high demand increase after the area is electrified.