Comparison of fuel price between diesel and palm oil fired power plants for remote area (rural and outermost Island) electrification in Indonesia

Moch Zulfikar Eka Prayoga, Rinaldy Dalimi

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Indonesia as an archipelago country still relies on Diesel Power Plants (PLTD) for electrification of remote areas. With total production of 41.7 million tons at 2018, Indonesia become the largest Crude Palm Oil (CPO) producer in the world. Currently, technology of Crude Palm Oil Fired Power Plant (PLTBn CPO) is available which uses 100% CPO. This study compared high speed diesel (HSD) fuel prices used in PLTD, with CPO used in PLTBn CPO. By calculating purchase price and shipping costs for HSD, while CPO obtained from local plantations (without shipping cost). As a result, HSD purchase price IDR 22, 245/liter in Oksibil, Papua, resulted generation cost IDR 6, 386/kWh. If using CPO with purchase price IDR 7.334/liter, obtained generation cost IDR 2.760/kWh. Thus, generation cost of PLTD is more expensive than PLTBn CPO. But in other places, on Subi Island, Riau, HSD purchase price IDR 8, 853/liter, resulted generation cost IDR 2, 660/kWh. Whereas, using CPO IDR 7, 334/liter, resulted generation cost IDR 2, 760/kWh. Evidently in Subi island, PLTD generation cost is cheaper than PLTBn CPO. With this condition, it can be concluded that remote areas with high shipping cost, such as in Papua, are preferred to use CPO rather than HSD, to reduce HSD imports.

Original languageEnglish
Title of host publicationProceedings - 2020 5th Asia Conference on Power and Electrical Engineering, ACPEE 2020
EditorsTek-Tjing Lie, Youbo Liu
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages917-922
Number of pages6
ISBN (Electronic)9781728152813
DOIs
Publication statusPublished - Jun 2020
Event5th Asia Conference on Power and Electrical Engineering, ACPEE 2020 - Chengdu, China
Duration: 4 Jun 20207 Jun 2020

Publication series

NameProceedings - 2020 5th Asia Conference on Power and Electrical Engineering, ACPEE 2020

Conference

Conference5th Asia Conference on Power and Electrical Engineering, ACPEE 2020
Country/TerritoryChina
CityChengdu
Period4/06/207/06/20

Keywords

  • CPO
  • Electrification
  • Fuel price
  • HSD
  • Remote area

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