Economic Analysis of “Ocean Current” Potential as Power Plant to Support Community Development (Case Study in Nusa Penida Strait)

Abstract

The use of fossil energy in Indonesia shown an increasing trend in all sectors every year[1]. Petroleum is still ranked the highest, ie 51.66%. Natural gas occupying the second level, ie 28.57%. The rest of the energy is supplied by 15.34% oil and 4.43% renewable energy. Besides this, the dominance of fossil fuel use give a major impact on air quality[2]. Emissions from fossil fuel burning add 6.3 GtC/year (compared to a stock of fossil fuels of 16,000 Gt C) while another 2.3 Gt C/year is reabsorbed into the ocean[3]. Therefore, it is necessary to develop the use of renewable resources to generate environmentally friendly electricity. One of the energy resource that can developed is ocean current energy. In 2009 in the Strait of Nusa Penida has been conducted a ocean current pilot project that have been successfully (technically) obtained a "proven design”. Energy utilization of ocean current in the Nusa Penida Strait is merely for lighting public facilities. The presence of power plant have given light to 25 street lamps that installed in Toyopakeh village. This study aimed to (1) identify benefit which Toyopakeh village community perceived, (2) analyze the opportunity and estimate the value of willingness to pay (WTP) community of Toyopakeh village for management of power plant. The economic and sosiocultural benefit perceived by Toyopakeh village community in the night are increasing works effectively for seaweed strappers, stalls can opened over night, easier to moored jukung and speedboat, ship monitoring, load and unloading, fishing, and ashes disposal. Citizens with high or low income had similar opportunity readiness. Citizens with high education had opportunity WTP 1.291 point more than not ready to pay. Based on Turnbull estimator distribution, the mean WTP value was at 7 894.695 IDR (0.56 US $) and 10 641.891 (0.76 US $) range.