Abstract

This study aims to determine the level of economics of the capacity of electricity generation and the amount of raw materials required for solid waste of palm oil for the most optimal power plant. The research begins with literature studies related to the characteristics of waste oil, the structure of investment financing, operational costs and renewable energy reference price. The next stage is a field survey to choose the location as a research object, then proceed with processing and analyzing data with financial feasibility methods. Financial feasibility analysis is conducted in the case of East Kalimantan Province. PLN purchase price for East Kalimantan region is around IDR 1,450 per kWh. The result of financial feasibility analysis of the project on the 10% discount factor assumption (IDR), capital cost 2,300 USD/kW obtained NPV of IDR 329.154.609.386, IRR value of 21.57%, investment rate of 5.15 years, and generating cost of IDR 521, 41 or 3.89 cent USD/kWh. Next is the sensitivity analysis of power plant projects from renewable raw materials to changes in capital cost, O/M cost, calorific value and price of raw materials of palm oil, electricity purchase price and capital composition.

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