Financial Feasibility Study of Celukan Bawang Steam Power Plant Fuel Conversion from Coal to Natural Gas

• Main Author: Fajar Pratama, Kevin
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/43561
• Institution: Institut Teknologi Bandung

Bali government held Bali Clean Energy Forum in 2016 and has been planning to make Bali a pioneer in using clean energy, one of it is natural gas. Bali government has been planning to convert its coal power plant, switching the fuel from coal to natural gas gradually as means to reduce carbon dioxide emission. One of the coal power plant is in Celukan Bawang. For that reason, further feasibility study of steam power plant fuel conversion from coal to natural gas that encompasses technical, environmental, and economic aspects is needed. Data gathering from various sources were done to analyze the technical, environmental, and economic aspect of the project. Technical analysis was done by reviewing the corresponding literature of coal power plant fuel conversion. Environmental analysis was done by calculating and comparing the emission of coal fired power plant (CFPP), natural gas combined cycle (NGCC), and conversion to natural gas (CTNG). Economic analysis was done by comparing electricity tariff increment using Life Cycle Costing method, comparing NPV, IRR, and PBP of the conversion project from CFPP to CTNG or CFPP to NGCC. The results show that for CTNG and NGCC projects, there is reduction of emission of 42.07% and 61.26%, electricity tariff increment of 0.0784 USD/kWh and 0.0402 USD/kWh, NPV of 189,862,774.93 USD and 95,897,633.73 USD, IRR of 50% and 9%, and PBP of 2 years dan 10.5 years respectively. Analysis results show that conversion from CFPP to NGCC result in lower electricity tariff increment, lower CO 2 emission compared to conversion from CFPP to CTNG. However, conversion from CFPP to CTNG has higher NPV and IRR with a lower PBP compared to conversion from CFPP to NGCC.