Modeling and analysis of the solar photovoltaic levelized cost of electricity (LCoE) - case study in Kupang

Abstract

This paper presents a modeling and analysis of the levelized cost of electricity (LCoE) related to solar Photovoltaic (PV) power plants. As the PV matures, the economic feasibility of PV projects is increasingly being evaluated using the LCoE. Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 19 the Year 2016 concerning the purchase of electricity from PV Power Plants by PT PLN (Persero) for On-Grid PV in East Nusa Tenggara with a purchase of 0.23 US$ / kWh, but the purchase price of electricity for Off-Grid PV system have not been determined. The aim of this study was to analyze LCoE for PV systems so that could help policymakers and PV investors to calculate the cost of providing PV systems for rural areas, especially in Kupang Regency. The research method uses an LCoE modeling approach. The results showed that LCoE PV On-Grid system at the level of 0.19-0.21 US$/kWh, and LPoE at the level of 0.21-0.23 US$/kWh. LCoE Off-Grid PV system at the level of 0.29-0.31 US$/kWh, and LPoE at the level of 0.31-0.33 US$/kW. The result from modeling PV On-Grid System, estimated by 2030, LPoE at the maximum level of 0.24 US$/kWh.