INVESTMENT PROJECT ANALYSIS OF 120 MW COMBINED CYCLE POWER PLANT (CCPP) IN BATAM (CASE STUDY OF PT PLNB)

• Main Author: Yuli Anggoro, Andryas
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80124
• Institution: Institut Teknologi Bandung

The Batam-Bintan electricity system is an integrated electric power system in which power plants on Batam Island and Bintan Island are connected to one another via distributed load centers. The largest load center is on Batam Island, and the highest peak load ever recorded was 587 MW in May 2023. The average increase in electricity consumption in Batam-Bintan over the past five years from 2018 to 2022 has been 7.5 percent, with an Average Reserve Margin of 10 percent similar to 60 MW in 2022. A new Power plant with a capacity of 120 MW is required to maintain the adequacy and reliability of the electricity supply, which is anticipated to be COD (Commercial on Date) in 2027, taking into consideration the realization of this growth and availability of reserves. The Power plant is intended to be a baseload so that Batam's electricity conditions can still be fulfilled in the long term. With the increasing trend of purchasing IPP electricity and the nonoptimal cost structure of PT PLNB, efforts are being made to add new power plants to PT PLNB in the form of own power plants. Moving on to the implementation of the 120 MW CCPP Power Plant investment. In this regard, the author conducts an analysis of the investment using methodologies such as capital budgeting analysis, sensitivity analysis, and Monte Carlo analysis to determine the project's feasibility likelihood. The results indicate that the investment project is deemed feasible (NPV > 0, IRR > WACC), with a mere 3.68% probability of a negative NPV. The project is scheduled to be tendered in early 2024, with an estimated Commercial on Date (COD) in early 2027.