Abstract
Smart energy system is one of the important infrastructures for building smart city. Waste to energy (WtE) is an innovative solution using municipal solid waste (MSW) as a source for electricity. This research was conducted to design WtE Plant in Depok and to asses economic viability of different business models. The technologies applied in WtE are anaerobic digestion and gas engine to generate electricity. The simulation was conducted using SuperPro Designer and UniSim Design software to evaluate the technical performances of electricity production from organic solid waste. The feasibility of project implementation of various business models are evaluated through economic analysis. The result of this study shows that the organic fraction of municipal solid waste in Depok has potential to generate electricity up to 28 MW. From economic aspect, pay off business scheme greatly affects the value of NPV and IRR. Meanwhile, the intervention scheme on fiscal incentives and low loan interest rate have slight effect on IRR values. A combination of Viability Gap Fund (VGF) and increased tipping fees intervention scheme is an optimum business scheme to build WtE plant and achieve electricity price below the offtaker’s willingness-to-pay.
Highlights
Smart city is a sustainable and efficient urban concept that can provide a high quality of life for residents through optimal resource management by utilization of new technologies to transform the urban existing systems, operations and services through participatory of governance
The implementation smart energy system through waste to energy (WtE) in smart city is needed to fulfill energy demand for the city in sustainable way using waste produced from urban activities
High production of municipal solid waste in urban areas have been promoted as the big issue due to urbanization
Summary
Smart city is a sustainable and efficient urban concept that can provide a high quality of life for residents through optimal resource management by utilization of new technologies to transform the urban existing systems, operations and services through participatory of governance. One of the most important infrastructures in the smart city development is energy sector due to the public utility services for urban society. Energy demand in Indonesia continues to increase in line with economic growth and population [1]. Power generation in Indonesia is still dominated by fossil fuels, which is about 80%. The most renewable based power generation consists of hydropower and geothermal power plants, each comprising 10% and 5% installed in Indonesia [2]. The high use of fossil fuels for electricity generation can lead to increased GHG emissions
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