Battery energy storage system as the optimal solution for underdeveloped, remote, outermost region: Pasi island study case

Abstract

Underdeveloped, remote and outermost (3T) regions are areas that are becoming the priority of development by the Government of the Indonesian Republic in strengthening national security. However, the constraints to development in the 3T region are immense, ranging from great distances, isolated areas to its geographical location in the mountainous area of even in small islands. Pasi Island is home to three villages that fall into the 3T area category. Battery ESS is an energy storage system in the form of giant batteries with many advantages, such as inexpensive, mobile, has a large capacity, long life cycle, easy to operate and zero waste. Seeing the advantages offered by the battery ESS so that it has the potential to be an optimal solution to meet the electrification ratio in the 3T region. Cost-benefit analysis is chosen because the results can provide a clearer picture of the costs and benefits going forward. So that the calculation of the resulting cost-benefit is more optimal then two calculation scenarios are used using the basic difference in electricity sales rates. In the first scenario, it uses BPP tariff for the Selayar Regency area of Rp 2,445, and in the second scenario, it uses the BPP tariff of Rp 3,041 for small subsystem areas. The calculation results indicated that the second scenario provided immense benefits with a short payback time. The NPV value generated by scenario II is 116.5 billion rupiah with an IRR percentage of 100.33% and a cost-benefit ratio of 9.332.