Techno-Economic and Social Analysis of Geothermal Development in Indonesia: A Case Study Approach

Galuh Muhamad Iqbal, Sri Puryono, Gatot Yuliyanto

Abstract


Indirect utilization of Geothermal resources in Indonesia is still very low compared to the existing potential, which is only around 2.36 GW (10.24%). In this research, the author conducted research using the Techno-Economic Analysis Method, which consists of several financial analysis tools, such as Net Present Value (NPV), Internal Rate of Return (IRR), and Discounted Payback Period (DPP), to determine the economic feasibility of geothermal development in the area under study. The author also looks at social aspects expected to provide an overview of the benefits for local communities around geothermal development projects. This research shows that if the developer only develops 55 MW, the project is considered unfeasible because the NPV shows negative results. However, if 110 MW is developed, it is feasible because the project provides positive results of USD 6,610,000 with a payback period of 25 years from the Commercial Operation Date (COD) and an IRR of 10.52%. From a social perspective, the positive benefit that will be directly received by the Government/community of producing regions is a production bonus with an average per year of USD 381,897 or around IDR 5.73 billion, assuming that 110 MW is developed.

Keywords


Geothermal Development

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v43.2.6122

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