Abstract

Based on data from the Ministry of Energy and Mineral Resources, Indonesia has abundant potential for solar power development, even with relatively low irradiation times. The implementation of solar power plants can directly mitigate the negative impact of carbon emissions caused by fossil power plants, especially coal-fired power plants. This study is aimed to calculate the carbon emission reduction from the construction of FPVPP Tembesi Batam and conduct economic analysis of FPVPP construction by considering Net Present Value (NPV), and Payback Period (PBP), and Internal Rate of Return (IRR) for PLN Batam located in Tembesi Batam Islands Indonesia. This Tembesi solar power plant will be the largest solar power plant in Batam Island which is intended to replace the role of fossil power plants. The study also analyzes the financial impact of carbon credits and renewable energy certificates that PLN Batam will obtain if it fully implements the Tembesi solar power plant. Based on the results of our study, the total carbon emission reduction due to the use of FPVPP when compared to Batam's electricity carbon emission is 67,278,560-ton CO2 in a year. The use of FPVPP in Tembesi, Batam affects the savings of primary energy payments each year and from the economic analysis using the NPV, PBP, and IRR methods, the results show that the feasibility of investing in the construction of FPVPP in Tembesi, Batam is considered feasible and profitable for PT PLN (Persero), the environment, and the scope of the Indonesian state.

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