FEASIBILITY STUDY OF TIDAL POWER PLANT IN LOMBOK STRAIT, NUSA TENGGARA BARAT

• Main Author: Azzahra, Safira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/76468
• Institution: Institut Teknologi Bandung

At the COP26 Climate Conference in 2021, Indonesia committed to reducing greenhouse gas emissions and reaffirmed its goal to achieve Net Zero Emissions by 2060 or earlier. Mitigating climate change while ensuring energy resilience can be achieved through the development of Renewable Energy Sources (EBT). One of the renewable energy sources that can be harnessed is tidal energy. Indonesia has many seas with the potential to generate tidal energy, including the waters of Lombok Strait, which have a tidal current speed of 2.5 - 3.4 m/second. To harness this potential and create a Tidal Power Plant in Lombok Strait, several aspects need to be considered to make the project feasible, and one of them is the financial aspect. The financial feasibility study for the Tidal Power Plant to be built in Lombok Strait examines various financial parameters such as Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Payback Period (DPBP), and Benefit Cost Ratio (BCR). The Tidal Power Plant is scheduled to be constructed in 2023 and is estimated to operate from 2024 to 2053 (a lifespan of 30 years). This final project is based on three scenarios: the electricity transmission scenario, the electricity demand projection scenario, and the initial loan scenario. The transmission scenario is divided into two regions: Lombok Island and Bali Island. The moderate electricity demand projection scenario is used for financial feasibility analysis. Meanwhile, the loan scenarios include a 100% equity scenario, a 70% initial loan scenario, and a 30% initial loan scenario. From the conducted financial feasibility analysis, it is determined that the Tidal Power Plant project in the Lombok Strait is feasible for three scenarios: Scenario 1 (electricity distribution to Lombok Island, moderate electricity demand projection, and 100% equity scenario), Scenario 3 (electricity distribution to Lombok Island, moderate electricity demand projection, and 30% initial loan scenario), and Scenario 4 (electricity distribution to Bali Island, moderate electricity demand projection, and 100% equity scenario). After conducting an NPV sensitivity analysis based on power production by the Tidal Power Plant, it is found that Scenario 1 is not feasible if production decreases by 45%, Scenario 3 is not feasible if production decreases by 0.41%, and Scenario 4 is not feasible if production decreases by 28.56%.