BUSINESS FEASIBILITY ANALYSIS DEVELOPMENT OF LIQUID NATURAL GAS (LNG) BASED POWER PLANT IN ISOLATED AREA TO REDUCE THE USER OF ELECTRICITY PRODUCTION COST & INCREASE THE OFF GRID BUSINESS OF PLN BATAM
The islands around Batam currently use a lot of diesel power plants (PLTD) to meet their electricity needs. The cost of operating PLTD is very expensive because it uses expensive diesel fuel and tends to experience a significant increase so that it burdens users and the government if they subsidize...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/59651 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The islands around Batam currently use a lot of diesel power plants (PLTD) to meet their electricity needs. The cost of operating PLTD is very expensive because it uses expensive diesel fuel and tends to experience a significant increase so that it burdens users and the government if they subsidize electricity tariffs.
PT PLN Batam sees a business development opportunity to replace PLTD with other types of power plants that are more economical and environmentally friendly and the choice is a gas engine power plant (PLTMG) with LNG as its fuel. LNG is very economical to distribute because it has 600 times more energy than natural gas. For this reason, PT PLN Batam conducts a Technical Study and Business Feasibility Study for LNG transportation modes and the construction of PLTMG.
The technical study of transportation modes is carried out using the Scoring Method, comparing the current transportation modes, namely, Floating Storage Regasification Unit (FSRU), Floating Storage and Offloading (FSO) and ISO Tank-LCT Vessel. The Financial Feasibility Study begins by calculating CAPEX and OPEX costs, then determining transportation and electricity tariffs with an IRR of 11%. By using the economic feasibility parameters NPV, IRR, PBP and BCR and deepened by conducting sensitivity analysis and conducting a risk assessment, it is hoped that the results of this study will provide clear, safe and comprehensive guidance for management to develop their electricity business in the future.
The construction of this PLTMG is feasible to be implemented on Karimun Island with a capacity of 3 x 4 MW using ISO Tanks and LCT ships as a mode of gas transportation in the form of LNG. The potential profit from the construction of the PLTMG is Rp.
17,327,179,295, - in the first year with an electricity tariff of Rp. 1,805/Kwh which is cheaper than the PLTD electricity tariff of Rp. 3,000/Kwh, In addition, it will provide significant savings in the cost of providing electricity for PT PLN (Persero) Wilayah Riau & Kepulauan Riau
The plan to implement the construction of a PLTMG on Karimun Island with a gas source in Tanjung Jabung Jambi will be carried out in approximately 14 months starting from the stage of preparation of technical and commercial tender documents, the stage of implementing an open tender to the selection of implementing contractors and the stage of construction implementation.
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