FEASIBILITY STUDY OF SOLAR PHOTOVOLTAIC ROOFTOP USING CAPITAL BUDGETING METHOD IN PLN’S NEW BUSINESS MODEL

• Main Author: Hanadya, Arien
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67089
• Institution: Institut Teknologi Bandung

To support Indonesia in realizing net -zero emissions, PLN has targeted to reduce carbon emissions to 81.4 million tons of CO2e by 2060. Indonesia will contribute more quickly to achieving the target of net -zero emissions. One of the efforts made was Solar Power Plants (PLTS) utilization . The Indonesian government announced a goal of increasing its use of renewable sources from 11 percent of the country's electricity to 23 percent by 2025 (RUPTL). Came from the issue that arises in PLN where the challenges they are faced is what suitable business model could be adapted for rooftop photovoltaic (PV) in Indonesia, the research will be explored and develop on the business model innovation in order to define the best solution for business model rooftop PV in Indonesia. The objectives of the research are to identify the new business model, build investment projection, and assess the value of PLN if implement the additional business model in order to determine whether the new business model is worth implemented by PLN which can help PLN determine future strategy. This project also used the current business model canvas of PT PLN for ro oftop PV as data to be reviewed using the theoretical framework proposed to use in this research. This analysis resulting in the Levelized cost of electricity is the most sensitive factor among the others. The financial feasibility study and structure proj ect of the Rooftop Solar PV will be presented and analyzed to overcome the challenges 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 LCOE (Levelized Cost of Electricity). This resulting that each alternative gives a feasible output, first by using the Leasing Business Model, second by using the Host -owned Business Model, by resulting in NPV Value, IRR on Equity, and Payback Period, moreover, each Business Model can generate the IRR return higher than WACC. The feasible indicator that was being used was financial profitability, resulting in IDR 2,000,381,646 NPV higher than 0. Moreover, this project also gives certain commitment by generates 17.47% IRR on the Project, 18.49% IRR on Equity, which indicated higher than the current Project Cost of Capital (7.29%), with 10.6 years for payback period less than 15 years. financially feasible to conduct with the escalation +20% and +20%, respectively for sensitivity analysis, two variables are sensitive to changes in the NPV value. The two variables are Electricity Generation Cost and Total Product Quantity Sold that have been determined as management targets. These two variables are also used as references in con ducting scenario analysis and Monte-Carlo analysis. PLN should be aware and be strategical to facing several changes from Government provisions that can fluently affect the electricity price in the future.