OPTIMIZATION OF PROJECT FINANCING SCHEME FOR THE DEVELOPMENT OF FLOATING SOLAR PHOTOVOLTAIC POWER PLANT PROJECT IN PT PEMBANGKITAN JAWA BALI

• Main Author: Adam Perkasa, Fransiscus
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53454
• Institution: Institut Teknologi Bandung

In the current condition, Indonesia's government has set a target to utilize a new renewable energy to be achieved at least 23% in 2025 and 31% in 2050 as stipulated in RUEN and RUPTL. This study assessed the financial feasibility study of implementing a utility-scale for the Floating Solar Photovoltaic Power Plant Project in PT Pembangkitan Jawa Bali based on an economic perspective as a business valuation for the long-term PPA contract. Moreover, the Solar FPV Project (175 MWp) has been initiated by PT Pembangkitan Jawa Bali with an awarded Strategic Partner. During the initiation and development phase, shareholders in JVC of the Solar FPV Project have faced several issues. These issues have been recognized from the political, economic, and technical influence, which creates the uncertainty and difficulties to develop the New Renewable Energy Project in Indonesia. According to that, this research would give a clearance perspective that develops the NRE project in Indonesia is still feasible. Furthermore, in this research, the author would breakdown the optimized business scenario by creating the financial feasibility study, risk analysis, and implementation plan for the 25 years period of Solar FPV Plant business activities. The investigation shows the Project Financing scheme model by implementing the Equity Financing with a different alternative scenario, which is Equity Loan, Shareholder Loan & Bond issuance followed by economic analysis on the parameter of the effective interest rate, debt to equity ratio, and EPC Cost, which are evaluated based on the simulation of the 5.816 cents USD/kWh Levelized cost of electricity of the Solar FPV Plant. This resulting that each alternative gives the feasible output, first by using Alternatives A (Equity Loan), resulting in USD 32,148,000 NPV Value, 12.73% IRR on Equity, 13.65% IRR on PJB, second by using Alternatives B (Shareholder Loan), resulting in USD 55,523,000 NPV Value, 12.00% IRR on Equity, 18.30% IRR on PJB, third by using Alternatives C (Bond Issuance), resulting in USD 32,148,000 NPV Value, 12.73% IRR on Equity, 14.00% IRR on PJB, moreover, each alternatives can generates the IRR return higher than WACC. From the result, Alternative B (Shareholder Loan) can deliver the optimum return for the firm.