Industrial Biogas Project Validation Planning: Strategic Business Initiation using Benefit Measurement Approach

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Prasetyo, Mahar and Indrajaya, Amelia Naim (2019) Industrial Biogas Project Validation Planning: Strategic Business Initiation using Benefit Measurement Approach. Journal of adult education and lifelong learning, 1. pp. 83-99. ISSN 2467-7025

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The development of biogas in Indonesia itself is quite large. Biomass’ energy potential in Indonesia amounts to 32,654 MW with installed power of 1,717 MW. It is a challenge for development in Indonesia. Perusahaan Gas Negara (PGN) plays a significant role in meeting domestic natural gas needs. With the PGN vision becoming the international standardized solution for the Utilization of Gas and the Sustaining Energy Fulfillment, PGN also developed biogas as a renewable energy project. There are two models of biogas that will be developed by PGN namely conventional biogas type, biogas equipped with cattle milk farming, modern biogas with biogas plant. This study aims analyze the method of selecting the project using the Benefit Measurement method. The formula used are benefit / cost ratio, Economic Value Added, Scoring Model, Payback Period, Net Present Value, Discounted Cash Flow, Internal Rate of Return and Opportunity Cost. This study is expected to determine the right choice of the two proposed biogas projects. This study will provide the whole picture of biogas as a business by determining the value propositions of biogas business as well as the cost side and the revenue side of its business model. In addition this study will be beneficial for the policy maker in PGN by giving a breakthrough in the development of renewable energy, especially biogas and the development of a strategic business initiation framework. KEYWORDS: Renewable Energy, Biogas, Benefit Measurement, Scoring Model

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Divisions: Research And Community Empowerment > Journals
Depositing User: Rizky Amalia
Date Deposited: 29 Jan 2020 03:50
Last Modified: 19 Feb 2021 04:47

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