State-owned Electricity Company Research Articles

Biomass power plant prospects in Indonesia’s energy transition: IPP and PLN perspectives

In an attempt to accelerate the energy transition, the government of Indonesia released a new regulation regarding renewable energy tariffs, including for biomass power plants (BPPs). However, a gap persists in the academic literature focusing on biomass power plants under these new tariffs. This study examines the role of biomass power plants (BPP) in meeting Indonesia's renewable energy targets, with a specific focus on recently introduced renewable energy tariffs. Three scenarios were developed to comprehensively understand Indonesia's state-owned electricity company (PLN) perspective and Independent Power Producers (IPPs) perspective, with a case study in Kundur Island, Riau Province. The financial analysis for IPPs shows in an NPV of $1.8 million under the initial tariff, while the expansion tariff results in an NPV of -$0.3 million. Sensitivity analysis reveals that a capacity factor exceeding 94.5 % is required to yield a positive NPV under the expansion tariff. From PLN's perspective, BPPs under the initial tariff correspond to an NPV of $8.48 million, and a B-C ratio of 2.31, resulting in a financially viable project, due to substantial cost savings from de-dieselization. Furthermore, the emission analysis highlights an 83.7 % decrease in emissions emitted with the utilization of BPPs compared to diesel power plants. These findings underscore the need to incorporate average generation cost in formulating renewable energy tariffs. Ensuring renewable energy projects are economically sustainable for both PLN and IPPs, stimulates widespread adoption and sustains cost-savings, all while advancing energy transition and making energy more accessible for everyone.

Development Of Risk-Based Policy Strategies to Improve Sustainable Investment Performance on Geothermal Working Areas in Indonesia

This study analyzes the influence of stakeholder decision-making strategies and policies on PT's investment performance. PLN (Persero), is Indonesia's state-owned electricity company. Indonesia has a geothermal potential of 28 GWe and aims to add 3.3 GW of installed capacity by 2030. Our analysis reveals that effective stakeholder decision-making and well-formulated policies significantly enhance investment performance. This is supported by statistical evidence, with both the t-test and F-test results showing significance (calculated t-value and F-value exceed their respective critical values, with p-values < 0.05). Enhancing these strategies and policies is crucial for meeting Indonesia's new renewable energy (NRE) targets as outlined in the 2021-2030 RUPTL.

Urban Waste Management Solution through SRF Cofiring in Coal-Fired Power Plants

Abstract Solid Recovery Fuel (SRF) is a highly effective waste product processed through sorting and separation from non-combustible materials in Indonesia. The SRF is then dried to increase its calorific value and ensure homogeneity. Most Indonesian SRF is derived from urban waste, which is predominantly organic material, making it comparable to biomass and having a calorific value akin to lignite coal. The state-owned electricity company, PLN, collaborates with local governments responsible for waste management to utilize SRF as a fuel source in coal-fired power plants through cofiring. This renewable energy mix is an optimal solution, eliminating the need to construct new power plants and optimize waste management programs and local government budgets without burdening PLN’s operational costs when managed through an appropriate collaborative scheme. PT PLN Indonesia Power has successfully conducted research and development efforts to transform urban waste into SRF through the Waste Treatment Facility program. They have also utilized SRF cofiring in coal-fired power plants up to the heat rate testing stage. This alternative solution benefits all stakeholders in addressing the waste management challenge. This program presents an opportunity to optimize waste management costs implemented by local governments, ultimately saving electricity generation costs. Moreover, it may help reduce the financial burden of constructing and operating conventional solar power plants. SRF cofiring in coal-fired power plants is a reliable and cost-effective renewable energy solution. The successful pilot project showcased the positive outcomes achievable through a collaborative management scheme that utilizes SRF products and environmentally friendly electricity generation for sustainable waste management. This approach effectively reduces greenhouse gas emissions and enhances renewable energy generation capacity, highlighting the significant impact possible through this method.

PENYEIMBANGAN BEBAN TRANSFORMATOR DISTRIBUSI PCC-007 UNTUK MENGURANGI RUGI-RUGI JARINGAN PADA TEGANGAN MENENGAH 20KV

The distribution system of electrical power networks serves as a means to distribute electrical energy to both industrial and household consumers. With the increasing population growth, the number of electrical energy users or consumers also increases, potentially impacting the loading on each distribution transformer. If the loading on each transformer increases, it can lead to overload, load imbalance, power losses, and damage to the transformer. Therefore, to ensure the proper operation of distribution transformers, PLN (a state-owned electricity company in Indonesia) has set a standard for the loading on distribution transformers, which should not exceed 80%. This research aims to measure the loading on distribution transformers and analyze the occurrence of power losses caused by load imbalance. Measurements are conducted using a clamp meter and earth tester to obtain current and voltage values as well as the resistance value of grounding. Subsequently, calculations are performed for transformer loading, load imbalance, and power losses on the feeder.

Comparison of ESG Rating Methods with AHP Methods (A Study in A State-Owned Electricity Company in Indonesia)

The ESG Rating measurement method from Sustainalytic & S&P is the method that is considered the most suitable for analyzing ESG risks in State-owned electricity companies. This research analyzes the ESG Rating measurement method issued by 4 ESG rating agencies, namely S&P, MSCI, Sustainalytics, and Refinitiv using the method AHP, the results of which will determine which method is most suitable for analyzing ESG risks in state-owned electricity companies. From the results of data collection, it was found that the ESG rating measurement method from Sustainalytic had the highest priority value, namely 38.9%, which was not much different from the method from S&P with a value of 34.0%. Meanwhile, the methods of the other 2 ESG rating agencies have a lower weight, namely MSCI with 14.2% and Refinitiv with 12.9%. Research provides the view that the level of correlation between rating agencies is still low, requiring companies to first analyze the rating agency. The ones they choose will determine the company's strategy in managing their ESG risks.

Techno-economic feasibility study of solar photovoltaic power plant using RETScreen to achieve Indonesia energy transition

Indonesia, a key player in the global energy transition, faces surging electricity demand and ambitious renewable energy goals. In response, the government introduced a new regulation about renewable energy tariffs, including tariffs for photovoltaic (PV). However, there remains a gap in the academic literature regarding PV power plant feasibility studies under these tariffs. To address this gap, this study investigates the feasibility of a utility-scale solar photovoltaic (PV) power plant in Indonesia, focusing on the newly implemented renewable energy tariffs based on Independent Power Producers (IPPs) and Indonesia's state-owned electricity company (PLN) perspectives. Five scenarios were developed based on the proposed 26 MW solar power plant on Nias Island utilizing RETScreen software. The results showed that based on the IPP perspective, the newly implemented renewable energy tariff was inadequate to make the project feasible, however, an introduction of a 10 USD/t CO2 emission incentive would make the project financially viable for IPPs. Therefore, it is recommended to introduce emission incentives as a strategic approach to attract investors and stimulate investment in Indonesia's PV power plants market, to accelerate Indonesia's energy transition. Conversely, the results also showed that the project is very profitable for PLN due to the significant cost-savings from the de-dieselization, leading to a reduction in the average generation cost for Nias.

How to Increase Employees’ Innovative Behavior? A Study in A State-Owned Electricity Company

Objective: This research investigates the impact of high-performance human resource practices (HPHRPs) on employees’ innovative behavior (EIB) both directly and through the mediating effects of work engagement (WE) and psychological capital (PsyCap) in a state-owned electricity company. Design/Methods/Approach: The data was gathered by conducting a survey questionnaire among 722 employees who work in an electricity company. The collected data was then validated through confirmatory factor analysis. The data was analyzed using the covariance-based Structural Equation Modeling (CB-SEM) technique to test the hypotheses. Findings: The findings indicate that HPHRP has a positive impact on Employee Innovative Behaviour (EIB), both directly and indirectly, through the mediation of Work Engagement (WE) and Psychological Capital (PsyCap) in a state-owned electricity company. Originality/Value: This paper is unique as it provides empirical evidence on how high-performance human resource practices impact employees' innovative behavior directly and with the mediation of work engagement and psychological capital. Practical/Policy implication: HR Managers should focus on employee participation and communication to increase employee work engagement and psychological capital, which will impact innovative behavior among employees. Researchers are encouraged to study employee and organizational performance measures other than Work Engagement and Psychological Capital influenced by high-performance work practices.

Application of The Rapid Application Development Method to Develop a Decision Support System for Employee Performance Assessment in a State-Owned Electricity Company

This study aims to create a decision support system for employee performance evaluation that will help managers choose qualified applicants for advancement. In this study, observation, interviews, and literature review were employed as data collection techniques. RAD is the system development methodology that the author used in this study. Black box testing is used for testing. The following conclusions were drawn from the research's findings: first, it created a helpful decision support system that helped managers judge employee promotions by giving them more objectivity. This system helps managers make more accurate and equitable promotion decisions by offering rewards for evaluating employee performance. Second, this research contributes to the field by developing a decision support system visually representing employee performance metrics using graphs. Using the MFEP and MPE methods in the system provides a clear and easy-to-understand picture of employee performance. With graphs, managers can quickly and efficiently evaluate employee performance data, facilitating decision-making.

The Indonesian Government’s Role in Setting Renewable Energy Targets to Reduce GHG Emissions from the Electrical Energy Sector

Greenhouse gas (GHG) emissions are being blamed for global warming, and the Indonesian government is concerned about it. The government has proven its concern for GHG reduction by participating in the Intergovernmental Panel on Climate Change and signing the Paris Agreement. In order to meet the Nationally Determined Contribution (NDC) target in the National Energy General Plan (RUEN) 2015-2050, the government has issued regulations and plans designed to achieve the objective of producing up to 31% of the nation’s electrical energy from renewable sources by 2050. The RUEN transcription in the General Plan of Regional Energy (RUED) will be implemented in the RUED of West Papua (RUED-P), which is expected to reach the target of 33% of the energy production from renewable sources by . The main issues with implementing NDC targets in RUEN and RUED-P are related to time and costs. This paper investigates the effectiveness of current and proposed government regulations in achieving Indonesia's NDC target by 2030 through the implementation of RUEN and RUED-P in the province of West Papua. The simulation results show that the target of achieving the NDC target of a 29% reduction in GHGs through RUEN can be surpassed. The potential exists to achieve a reduction of 54,363 tons CO2e (or 30.01%), compared to the ‘business as usual’ (BAU) scenario of 77.619 tons CO2e. However, the NDC target of a 41% reduction by 2050 will not be met as implemention of the West Papua regional scenario via the RUED-P will result in a GHG reduction of only 55,393 tons of CO2e, or 28.63% under this scenario. By imposing a 2030 target for energy production from renewable sources amounting to 33% of total generating capacity under RUED-P, the NDC target can actually be exceeded. Under every scenario, the state-owned electric company (PLN) operates at a deficit under current customer pricing. For this reason, the government needs to increase the basic electricity tariff to IDR 2,500 per kWh in order to support PLN operations and not burden the state's budget by subsidizing PLN’s losses.

Photovoltaic Power Plant Feasibility Study Based on Indonesia’s Renewable Energy Tariffs: A Study of Nusa Penida Solar Power Plant

This study conducts feasibility study on 3.5 MW photovoltaic (PV) power plant in Nusa Penida based on Indonesia’s existing renewable energy tariffs. Three scenarios were developed utilizing RETScreen software, according to the power plant specification. Base case scenario was developed to determine the feasibility of the PV power plant based on independent power producer perspective. PLN scenario was developed to determine the feasibility of the PV power plant based on Indonesia’s state-owned electricity company. Clean-energy scenario was developed to determine the feasibility of the PV power plant if there was a $20/tCO2 emission reduction incentive in Indonesia. The base case scenario results showed that the existing PV tariffs for PV power plant project was not sufficient to make the project financially viable based on the IPPs perspective. The PLN scenario results showed that the PV power plant project is very profitable based on PLN perspective due to high cost-savings. The clean-energy scenario results showed that $20/tCO2 emission reduction incentive was sufficient to make the PV power plant project financially viable based on the IPPs perspective. Based on those results, this study recommends emission-reduction incentives as a mean of attracting more investors. This study also recommends PLN to utilize more PV power plant, especially if the region have high generation cost as a means to lower Indonesia’s energy cost thus making energy more accessible for everyone.

Reliable Electricity Access, Micro and Small Enterprises, and Poverty Reduction in Indonesia

While subsidising electricity tariffs, the Indonesian government has launched a massive electrification campaign to improve the quality of life of Indonesians. However, whether these efforts have increased access to energy for all and whether this access reduces poverty is unclear. We empirically test the causal effects of electricity access on poverty reduction. We also investigate the potential role of micro and small enterprises (MSEs) as the transmission channel for poverty reduction. To isolate any endogeneity, we use the instrumental variable approach. We exploit the village’s proximity to the nearest power plant in 1985 as the exogenous variation of the historical least-cost distance by the state-owned electricity company, PLN, to instrument the endogenous nature of current-time electricity access. Our results show that expanding reliable electricity services contributes significantly to poverty reduction. Nevertheless, we find no evidence that the development of MSEs has an influential mediating role in the poverty reduction effects.

Aplikasi Monitoring Penggantian Kwh Meter Di Bidang BCP PT. PLN Selat Panjang

PT. PLN (Persero) Rayon Selatpanjang is a PLTD unit of a state-owned electricity company that was built to meet electricity needs in the Selatpanjang area. The system that is running in the monitoring section when inputting customer status requires the operator to retype the status of the customer who is replacing the KWH meter. In this study the author provides a solution in the form of a monitoring application for KWH meter replacement which is designed to manage customer status data using the Delphi 7.0 and SQL Server 2005 programming languages, then by using the monitoring application for KWH meter replacement, managing customer status data in the BCP field at PT. PLN (Persero) Rayon Selatpanjang will be safer and faster.

Assessing the Feasibility of Migration Policy from LPG Stoves to Induction Stoves in Indonesia

Energy subsidy is a common policy in developing countries to protect poor people. Yet, the policy can become a budget burden such as LPG subsidy for cooking in Indonesia, reaching US$ 3.9 billion in 2018. In this study, we analyze the feasibility of the induction program currently proposed the Ministry of Energy and Mineral Resources, and the State-owned Electricity Company. We use multiple approaches involving energy equivalence measurement, LPG consumption survey, input-output analysis, and feasibility analysis on both government and household perspective. Our analysis results that the policy can significantly reduce the energy cost for cooking on poorer households while relatively wealthy household undergoes higher energy costs for cooking because many of them are still using the subsidized LPG 3 kg cylinder. For them, the energy cost of the induction stove will be lower than the energy cost of the unsubsidized LPG 12 kg cylinder

Classification system model for project sustainability

One of the problems faced by the state-owned electricity company (PT. PLN) in Indonesia is the difficulty of monitoring the progress of an ongoing project so that it requires a technology that can help project managers in monitoring project implementation. The data in this study consisted of 117 Win project data and 89 Lose project data with a total of 206 data. The system development used extreme programming with algorithmic testing, namely the configuration matrix. The result of this research showed that the model could produce an accuracy of 92.68% with an error percentage of 7.32%, which means that the model produced good accuracy in implementing the C4.5 algorithm in recognizing patterns of project development. The first implication of the proposed approach is that it can establish project work monitoring services. The second implication is that project managers can improve company performance

Holistic Operation and Maintenance Excellence (HOME): Integrating Financial and Engineering Analysis to Determine Optimum O and M Strategies for a Power Plant during its Lifetime

Today, there is an oversupply of 23.5 GW (47.7%) in the electricity system of Indonesia. PT.PLN, the state-owned electricity company, needs decision criteria to decide whether the power plant should be continue operated, rehabilitated or demolish

Performance and emission effects of biodiesel 30% (B30) usage in oil-fired power plants and gas engine power plants

In 2020, Indonesia Government through the Ministerial Regulation of Energy and Mineral Resources No. 12 Year 2015 obligates the use of 30% biodiesel mixed diesel fuel (B30) for various sectors including the power generation sector. The obligation potentially affects the performance of oil-fired power plants (PLTD) and gas engine power plants (PLTMG) that are common power plant technologies used by the State-owned Electricity Company (PLN) in remote and disadvantaged areas. The objective of this study is to estimate effects of B30 usage on performance and emissions of PLTD and PLTMG. We compare performance and emission data of 3 (three) power plants before and after using B30. The results show that the uses of B30 increases spesific fuel consumption (SFC) by 0.009 L/kWh in PLTD and by 0.0071 L/kWh in PLTMG. The uses of B30 will reduce emissions of SO2, CO, and particulate matter, except NOx emission.

Petro-populism and infrastructural energy landscapes: The case of Mexico’s Dos Bocas Refinery

In 2018, recently elected presidential candidate Andres Manuel Lopez Obrador (AMLO) promised the construction of a new refinery in Mexico. Arguing a lack of energy independence and the urgent need to ‘rescue’ petro-state giant PEMEX and the stateowned electricity company CFE from the mismanagement and neoliberal policies of previous administrations, the Dos Bocas Refinery (DBR) became one of the main flagship projects of AMLO’s administration symbolizing a discourse of energy security and national pride. This paper reviews the process of approval and construction of the refinery by assessing, the material and relational character of energy infrastructure, the “politics and poetics” that are built into the promises of infrastructure projects, and the shifting temporalities of infrastructure and their interaction with emerging ‘petropopulist landscapes’ which serve as material evidence of oil-led development. Drawing on Anthropology's and Geography’s ‘infrastructural turn’, this paper reviews a series of government documents, speeches and declarations supported by interviews with energy experts to understand the symbolic meaning of energy infrastructure and how the DBR has become deeply entangled with a nationalist political project which has instituted an inertial path-dependence towards the continued use of fossil fuels, off-staging other concerns associated to climate change and the energy transition at the national level.

Can Energy Trading be a Solution for Indonesia’s Energy Mix Goal through Solar Energy?

Climate change has gotten more and more serious worldwide. To secure the future for our next generation, we need to change the way we use and consume energy from a cleaner source. In Indonesia, this effort is shown through Presidential Regulation No. 22/2017, or general planning of national energy (RUEN) indicates that Indonesia’s government is targeting 23% of energy mix via solar power. However, today, through various industries and consumers level adoption, it is still hard to achieve. The consumer study by Institute for Essential Services Reform (IESR) found that the main issues for the adoption in Jabodetabek are due to lack of consumer incentive, lack of clear benefits of electricity reduction, and poor education about how to install solar power on the consumer level. Throughout this paper, the authors are going to propose a way for energy trading to solve such issues from a top-down perspective. It will start from how the current condition at the consumer level is, the potential scenario, stakeholder benefits analysis, potential location case study, to the commercialization through economic analysis. To achieve the goal of incentivizing customer yet still creating economic sense for the potential investors, which we use state-owned electricity company (PLN) as an example to provide alternatives to a larger scale power plant investment, we experiment on multiple profit sharing mechanisms and scenarios. By varying the profit-sharing factor, we get that 35%-65% profit sharing mechanism gives PLN an acceptable payback period and decent profit margin while can still incentivize the customer. From this study on, we can further study the customer buy-in (incentive level) elasticity in correlation with the variation of profit share that is still profitable for the investor or PLN before deciding on the policy.

INVESTIGATING THE INFLUENCE OF ENTREPRENEURIAL ORIENTATION AND TRANSFORMATIONAL LEADERSHIP ON ORGANISATIONAL PERFORMANCE WITH THE MEDIATION OF INNOVATION: EVIDENCES FROM A STATE-OWNED ELECTRICITY COMPANY IN INDONESIA

The research findings regarding the influence of entrepreneurial orientation and transformational leadership on organisational performance are inconsistent. This research aims to investigate the direct influence of entrepreneurial orientation and transformational leadership on organisational performance and their indirect influence with the mediation of innovation. The population of this research is 301 business units of Indonesia’s State-Owned Electricity Company of Java and Bali distribution region, from which 168 were selected as the sample. The managerial or practical implications of this research are that it provides a better understanding, proposes suggestions to the organisation in maximising and optimising its intangible resources in relation with entrepreneurial orientation, and encourages activities related to its innovation in order to increase its organisational performance, especially in the specific nature of state-owned enterprise’s context and business model. In addition, the organisation needs to encourage transformational leadership among its leaders to enhance activities related to innovation.

Application of Data Mining Prediction of Electricity Deviation Flow Using Metode Backpropogation at PLN Binjai Area

PLN is the only state-owned electricity company that provides and regulates electricity to the public. However, in the provision of electricity to every community, there are many frauds or irregularities in utilization of electricity by irresponsible parties was found by PLN. Electricity deviation caused by irresponsible parties, like the theft of electricity can have a tremendous impact due to loss of electrical energy. Electricity Deviation, using Electricity Deviation data for 3 years, from 2012 to 2014. Sales data processed by the network, in the form of amount of Kwh deviation per month. The data needed in the process of analysis of this Neural Network is pure database results by taking the input variable in the form of Amount of Kwh Deviation and Amount of Kwh Deviation for the next Month for the following year as output. Electricity for 3 years is processed into Matlab using GUI facilities, to produce information on the predicted results of the Kwh Deviation in November 2014 to March, May, June, August, November, December 2015 experiencing has increase in Kwh, while in April July, September, and Okrober 2015 decreased.