COST-BENEFIT ANALYSIS OF CIRCULAR ECONOMY IMPLEMENTATION IN THE COAL FUELED ENERGY PRODUCER

• Main Author: Priliani, Meily
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47811
• Institution: Institut Teknologi Bandung

Annually, Indonesia will have an average of 6.42% electricity growth or equally 16.9 million electricity customers until 2028. PLN (Perusahaan Listrik Negara) needs to build more energy producers or power plants to answer the demand. The coal power plants will still be the primary power producer while burning coal without alternate models of growth and appropriate planning. It may ultimately end up as just wastes and pollutants, imparting negative impacts not only to the environment but also to the economy. The circular economy is needed to be implemented in the coal power plant because this system applies the ‘closed loops’ in which raw materials, components, and products lose their value as little as possible. The system would able to make the coal power plant grow both economically and environmentally by generating a new profit and reducing its’ impact on the environment, then break the stigma that coal power plants are identical to ‘non-environmentally friendly’ energy producer. This study analyzed some models and programs related to a circular economy that is implemented in PLN Java A coal power. This research will focus on the benefits analysis of the circular economy in the PLN coal power plant, which mainly focused on the quantitative analysis of the environmental and economic aspects. Quantitative analysis is conducted to create meaning through the objectivity uncovered in the collected data (Williams, 2007). One of the aims of this research is to analyze and evaluate the cost and benefits of a circular economy in PLN Java A coal power plant in an objective way. The circular economy system that is implemented in coal-fuel energy producers (PLN Java A Coal Power Plant) by conducting the circular economy business model such: 1) Circular Supply Chain, (2) Recycle and Recovery, (3) Sharing Platform. These models are executed through five main programs include energy efficiency, water conservation, emission reduction, hazardous and toxic waste reduction, also solid waste reduction. Overall, based on the cost-benefit analysis of the programs in 2017-2019, it results in the implementation of programs that have both tangible benefits in environmental and economic aspects. Along with the tangible benefits, this study also highlights on how the circular economy implementation can create intangible benefits as well, such as: (1) Enhancing the Innovation Culture, (2) The Big Data Development, (3) Beyond Compliance on Regulation, (4) Satisfy the Customer or Society Expectations, (5) Improve the Company Image. By evaluating those two types of benefits, the circular economy might be considered as one of the solutions toward the industrialization vs. environmental impacts dilemma in the electricity sector.