ANALYSIS OF THE INVESTMENT FACTORS FOR THE REPLACEMENT OF COAL FIRED POWER PLANT USING FUZZY AHP

• Main Author: Furukawa, Takahide
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79951
• Institution: Institut Teknologi Bandung

Indonesia aims to reach net zero emissions by 2060 during the 2021 United Nations Climate Change Conference in Glasglow, UK. This study investigated factors that might affect the decision-making process in the investment of coal fired power plant replacement: Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) factors. Fuzzy analytical hierarchy process (AHP) method was utilized and 10 Indonesian and Japanese experts with prior experience in the investment of coal fired power plant replacement projects in Indonesia were participated in this study for a month. Fuzzy AHP method was utilized as it considers the uncertainty in decision-making, such as human thoughts and perceptions. Economic and legal feasibility were found to be the most affluent factors in the decisionmaking process to mitigate from coal fired power plant. Furthermore, gas fired power plant was found to be the optimal alternative to mitigate from coal fired power plant. Referred to levelized cost of electricity (LCOE), it was revealed that geothermal power plant was also a possible alternative, however, private companies might face difficulties in accessing geothermal power source as it is managed by the Indonesian government. This study provides insight and alternatives to consider to replace current dependency on coal fired power plant and to reach full potential in low-carbonization, decarbonization, and net zero emissions in Indonesia.