Technical and Economic Viability of PV Power Plants Construction for Rural Area in Nunukan North Kalimantan

• Published in: 2022 5th International Conference on Power Engineering and Renewable Energy (ICPERE) Vol. 1; pp. 1 - 6
• Main Authors: Wiguna, Rizal Bagja, Grapurwa, Galang, Munnahar, Adii
• Format: Conference Proceeding
• Language: English
• Published: IEEE 22-11-2022
• Subjects: economic valuations; Economics; Nunukan; photovoltaic; Power system reliability; Reliability; renewable energy; Renewable energy sources; rural areas; Solar panels; Solar radiation; Urban areas
• DOI: 10.1109/ICPERE56870.2022.10037491

The low reliability of rural power systems is a major problem and continues to pose huge challenges, especially in rural areas. Nunukan is one of the cities in North Kalimantan that directly borders Malaysia. Nunukan is not connected to a high-voltage system, making it have to rely on a conventional power plant. It was found that Nunukan is present in a region with a solar radiation value of 4.329 kWh/m2/day, making it a suitable area for Krayan PV power plant investments. One of the latest renewable energy technologies that can be used is Photovoltaic (PV). In line with the Indonesian government mission since 2020, called GREEN, where in the future, more power plants will be built with renewable energy sources. This study aims to analyze PV power plant construction in Nunukan, North Kalimantan. In addition to electrifying Nunukan, the PV development can also contribute to the ratio of new renewable energy. Assuming the electricity needs around the PV is 540 kWh/day, the planned installation of 396 PV panels with Polycrystalline-type with a capacity of 340-watt peak per panel. The electricity generated will be distributed through an existing network to residents' homes around the plant. When PV power plants are installed on land with high levels of sunlight, longer battery life, and adequate capacity, they make the investment more economically viable. The indicators used as economic valuations are Net Present Value (NPV), Benefit-Cost Ratio (B-CR), and Discounted Payback Period (DPP). The NPV value is positive. Meanwhile, the BCR value is 1.07, and the DPP has a shorter period than the project life. All indicators of economic viability show that the Krayan PV development could be recommended in Indonesia.