Distributed Electricity Generation from GE Strategic Perspective: GE Integrated Biomass Gasification as A Solution for Rural Electrification

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Rifa, Budi and Rahman, Hairrul and Purba, Hakiki Nugraha and Salim, Tamara Arista (2012) Distributed Electricity Generation from GE Strategic Perspective: GE Integrated Biomass Gasification as A Solution for Rural Electrification. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Unpublished)

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General Electric (GE) integrated biomass gasification is one solution from GE t help State-owned Electricity Company (PLN) to distribute electricity in rural area. PLN had agreed to use GE integrated biomass gasification in PLN biomass gasification pilot project at Sumba Island, Indonesia. This project result will become PLN guidelines and benchmark for its future biomass gasification project in Indonesia. The feasibility study on PLN & GE integrated biomass gasification pilot project in Umbuwangu, South Wejewa, Southern Sumba at Sumba island shows the project is only feasible (Net Present Value/NPV Positive) if the opportunity cost (cost saving) from diesel power generator replacement is included in the calculation With diesel power generator cost saving the payback period of the project is 10 years and resulting the internal rate of return of 20%. The current biomass gasification electricity tariff cannot cover the cost of project if the opportunity cost from diesel power generator replacement is not included in the calculation; the NPV result without the opportunity cost is negative. The calculation also resulting biomass gasification levelized cost of electricity (LCOE) in Sumba Island of USD 0.112 (11.2 Cents) per kilo watt hour. This result is better and cheaper compare to the existing diesel base power generator in Sumba Island with LCOE of USD 0.36 (36 Cents) and other option of power generator available. The calculation also identified that the significant cost drivers la the LCOE results, besides the project initial investment, are feedstock cost and operational & maintenance cost. Considering feedstock cost as significant cost driver, to secure the resource for project operational, feedstock self-planting is prefered option compare to it PLN have to purchase or collect from other party or farmer around the project location. To make the pilot project with PLN in Sumba Island success and to make GE integrated biomass gasification more attractive for GE future project reference, GE needs to have competitive machine selling price (Engineering, Procurement and Construction Cost) and low infrastructure building (other initial investment) costs, because the LCOE result is mainly drive by those costs. To secure feedstock availability and also to maintain feedstock price (since feedstock also one of the cost driver of LCOE), in every biomass gasification project GE should provide support for the project owner to run their own feedstock plantation. GE also could reduce its operation and maintenance cost by offering global contract or longer maintenance contract agreement with project owners. And internally, GE could improve its production process to reduce the cost of production by building the machine locally in GE market area.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
T Technology > T Technology (General)
Divisions: Library > GFP (Group Field Project)
Depositing User: Indriana Apriyanti
Date Deposited: 20 Jan 2020 03:51
Last Modified: 20 Jan 2020 03:51
URI: http://repository.ipmi.ac.id/id/eprint/489

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