3 August 2017
Solar PV in the Energy Mix of Power Grids in Nusa Tenggara Timur
Jakarta, 03 August 2017. The Global Green Growth Institute (GGGI) concluded a pre-feasibility study for a preliminary design and financial analysis of the development of solar PV generation facilities in 8 locations in Nusa Tenggara Timur (NTT), Indonesia. GGGI is a treaty-based international organization to promote green growth, consisting of 18 member countries. WEnergy Global, a renewable energy solutions company based in Singapore collaborated with PT. Chazaro Gerbang Internasional, based in Indonesia to conduct the pre-feasibility study.
Under the current regulatory framework, WEnergy Global worked on preliminary designs for different solar PV generation facilities with energy storage systems for each of the 8 sites. These designs were based on site surveys by a joint team led by WEnergy Global. In both cases, the solar PV and energy storage systems were sized in a way to ensure grid stability at each site on top of meeting the current electricity demand and the projected future growth. Furthermore, existing diesel generation facilities and their technical conditions were taken into account.
The study finds out that the solar PV generation facilities with energy storage systems of all 8 sites would be able to reduce diesel consumption by 740 million litres (approx. 23%), equivalent to a total reduction of 549,300 CO2 equivalent emissions over 20 years.
The financial analysis showed that the attractiveness of each location highly depends on the electricity selling price as the single source of revenue. The allowed maximum selling prices in several of the 8 locations are proven to be attractive to compensate the required investment and to generate acceptable returns for investors.
On top of decreasing the average generation cost with the current diesel price, replacing diesel fuel with clean solar PV energy, supported by energy storage systems, in these 8 sites will bring potential savings for PT. PLN of approx. USD 125 million over 20 years. Aside from decreasing PLN’s exposure to diesel price fluctuations, PLN will have more resources to potentially expand and improve its grid with such savings and increase public access to electricity in areas such as NTT.
The Global Green Growth Institute facilitates the Government of Indonesia by preparing the project with the focus on possible project execution by private and public parties. GGGI demonstrates how green growth can be achieved by making fundamental shifts in clean energy production.