Yahmadi A & Lu Aye 2003 'Small-scale distributed renewable electricity in the Java-Bali region', Electricity Supply Industry in Tranition: Issues and Prospects for Asia, AIT Thailand, 14-16 January 2004, pp. 1-26.
Abstract
The total power plant capacity in the Java-Bali region is almost certain to continuously increase due to a rapid growth in demand for electricity that has attained an annual growth rate of 9.4 %. Growth means providing new generation plants, which can be either large-scale centralised generation or small-scale distributed generation (DG). DG development is intended to support the large centralised generation model that has already been established. The role of DG is to increase the reliability and quality of the system. DG development in the Java-Bali region is also likely to serve such a purpose since it already has an interconnected electricity network. The region has a promising renewable energy resource potential, which can be harnessed utilising commercially available technologies, to support the power expansion program. This paper investigated the attractiveness of small hydropower, parabolic trough solar thermal electricity (STE) and biomass fired stoker grate power plant for a 10 MW electricity generation capacity. The financial and economic attractiveness were reported. It was found that the small hydropower is the most attractive development followed by biomass power plant and the STE. The levelised energy cost (LEC) of small hydropower was found to be 4.2 US c/kWh and the internal rate of return (IRR) is 13.5% for a 12% real discount rate. The LEC of biomass power plant is 6.0 US c/kWh. Biomass power plant would be financially feasible if a significant income tax incentive or common loans for generation projects are available. STE with a biomass auxiliary back up heater provides LEC of 8.3 US c/kWh. This system would be a beneficial investment if US $ 10.9 millions subsidy or the softest Overseas Economic Cooperation Fund (OECF) of the Japanese Government loan were available. From economic point of view, considering public benefits and externalities, the small hydropower, STE with biomass auxiliary heater and biomass power plant are beneficial investments and more attractive compared to diesel generation system.
Keywords: Renewable electricity; Small hydropower; Solar thermal electricity (STE); Biomass power plant; Economic analysis