INVESTMENT ANALYSIS OF 50 MW GEOTHERMAL POWER PLANT FOR INDEPENDENT POWER PRODUCER IN EASTERN INDONESIA

Indonesia is known as archipelago country and has a lot of volcanoes around its territory. The volcanoes bring Indonesia has a lot of geothermal resources. This geothermal resources can be utilized to fulfill the electricity demand by constructing geothermal power plant. In line with the vision of...

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Bibliographic Details
Main Author: Sihwan Abdullah, Muhammad
Format: Theses
Language:Indonesia
Subjects:
Online Access:https://digilib.itb.ac.id/gdl/view/53525
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Institution: Institut Teknologi Bandung
Language: Indonesia
Description
Summary:Indonesia is known as archipelago country and has a lot of volcanoes around its territory. The volcanoes bring Indonesia has a lot of geothermal resources. This geothermal resources can be utilized to fulfill the electricity demand by constructing geothermal power plant. In line with the vision of Indonesia’s Government that set a target to supply its electricity using renewable energy sources by 23% in 2023, the development of geothermal power plant is also helpful to reduce the carbon emission in Indonesia which Indonesia has commit in Paris Agreement to reduce its carbon footprint. This research discusses about financial feasibility study in developing 50 MW geothermal power plant in Eastern. This research is analyzed using capital budgeting technique to see the financial feasibility of the project. The analysis result shows that the 50 MW geothermal power plant project in Eastern Indonesia is financially feasible with its NPV is about USD 49 million or 10.3% IRR which larger than its WACC of 8.12% and the LCOE of the project is 6.92 USD Cent/kWh.