Abstract
With Indonesia’s marine resources abundance, it is appropriate for Indonesia’s economic growth to gear towards the fisheries sector. Fishery management in Indonesia is still not operating optimally due to a lack of fisheries management infrastructure. This study took place at the Fish Auction Place in Dadap Village, West Java, Indonesia. The actual problem is a fluctuation in fish catch due to seasonal factors that cause instability in fish prices and fishermen’s incomes. Furthermore, there is no cold storage for storing fish when the fish are abundant so that the quality of the fish will decrease. However, fishery cold storage is energy-intensive equipment, and there is a lack of electricity infrastructure in that coastal area. Renewable Energy Sources (RES) are the key for rural electricity because RES prices are lower, especially on-grid solar photovoltaic (PV), than fossil fuel-based. Consequently, the application of solar PV in Indonesia is still not optimal due to limited regulations. Regulations that hinder the economic value of On-grid PV system are the excess energy compensation percentage and the inverter capacity limitation. Therefore, in this study, we have modelled six regulatory scenarios related to On-grid PV system. The scenarios are how the current 65% excess energy compensation is changed to 85% and 100% (1:1 ratio) and remove the regulation regarding inverter capacity limitation. Furthermore, the ownership model of cold storage is also considered by dividing it into two models, which are commercial-based and community-based. These ownership models have different financial instruments. The simulation gives a new result by changing regulation assumptions that On-grid PV system has a lower Levelized Cost of Electricity (LCOE) than existing regulation because it can produce threefold more electricity to the utility grid with higher inverter capacity. Furthermore, the community-based cold storage rental price can be 16 % cheaper on average with all energy system topologies than the commercial-based ownership model. Then, by reducing the capital costs of solar modules and batteries in 2030, solar PV system’s LCOE will be lower by an average of 20%. It will result in an average reduction of 10% on cold storage rental prices. Finally, sensitivity analysis of the energy system is also conducted in this study. The result is that On-grid PV system is the most secure energy source against price fluctuations.
Highlights
The Levelized Cost of Electricity (LCOE) results are gathered from all topologies of the energy system
The LCOE results will be the basis for calculating cold storage rental prices because electricity costs are included in the operating expenditure (Opex) component, and electricity costs are calculated based on LCOE
LCOE calculations and cold storage rental prices are determined based on the learning rate of capital costs for solar modules and battery equipment in 2030
Summary
The fisheries sector contributes significantly to national development by creating jobs, diversifying livelihoods, supplying animal protein, and earning foreign exchange. About 6.4 million Indonesians are employed directly as a result of the seafood business, which contributes 3.1% to national GDP and 21% to agricultural GDP, earning US$ 4.2 billion in 2012 from seafood exports and supplying. 54.8% of the country’s animal protein needs [2,3]. Indonesia’s wealth in fisheries products does not match the country’s infrastructure for fishery support [4,5]. For Indonesia’s fish processing industries, the most pressing problem is a lack of high-quality infrastructures such as cold storage and filleting technologies, which makes it difficult to maintain a steady supply of raw materials
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