Abstract
This paper investigates the most optimum financing scheme for medium-scale grid-connected PV plant investments in Indonesia. Eleven (11) financing schemes, composed through the combination of Viability Gap Fund (VGF), international grant, tax incentives, and low loan interest, are studied. The electricity tariff resulted from each financing scheme is analyzed and compared to the applicable feed-in tariff to find the optimum financing scheme. Moreover, this paper also includes two types of PV modules, such as thin-film and monocrystalline. The result shows that the funding combination consists of 50% of capital expenditure (CAPEX) from VGF provided by the Government of Indonesia (GoI), 30% of CAPEX provided by the international grant, and 5% of loan interest results in the optimum financing scheme. The resulting electricity tariffs from this financing scheme are 571.04 IDR/kWh and 761.76 IDR/kWh for thin-film and monocrystalline PV plants, respectively, which is below the lowest existing feed-in tariff (985 IDR/kWh).Keywords: Thin-film PV, Monocrystalline PV, feed-in tariff, economic feasibility, financing schemeJEL Classifications: P41, P43, P49DOI: https://doi.org/10.32479/ijeep.11387
Highlights
The photovoltaic (PV) plants play an important role in achieving the Government of Indonesia (GoI) ambitious targets of increasing the share of new and renewable energy in the national energy mix up to 23% in 2025
This paper presents and analyzes the economic feasibility evaluation of eleven financing schemes for baseload Thin-film and Monocrystalline PV technologies
The electricity tariffs associated with the financing schemes are compared to the feed-in tariff determined by GoI on the MoEMR Regulation No 55K/20/2019 to select an optimum financing scheme
Summary
The photovoltaic (PV) plants play an important role in achieving the Government of Indonesia (GoI) ambitious targets of increasing the share of new and renewable energy in the national energy mix up to 23% in 2025. The other study reviewed several relevant and lessons on financing schemes for renewable energy deployment in Uganda, Sub-Saharan Africa, Finland, Central America, and Turkey (Asian Development Bank, 2019) These studies can be learned on creating the innovative financing scheme for PV plant investment in Indonesia. The study is referred to the technical and economic aspects of PV plants located in Cirata, West Java Province, and in Bangli, Bali Province for thin-film and monocrystalline, respectively As both PV plants were built in 2015 and 2013, the optimum financing scheme for future PV plant investment is obtained by implementing the learning rate on capital expenditure (CAPEX) as proposed in (Rubin et al, 2015) to formulate the new CAPEX. Et al.: An Optimum Financing Scheme for Baseload Thin-film and Monocrystalline Photovoltaic Plants in Indonesia tariff and the comparison between thin-film and monocrystalline PV technologies, and Chapter 4 concludes this research
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