Comparison of Fuel Price between Diesel and Palm Oil Fired Power Plants for Remote Area (Rural and Outermost Island) Electrification in Indonesia

摘要

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.