Feasibility Analysis of the 55 MWe Gedongsongo Geothermal Power Plant Project

Geothermal is a potential renewable energy source to be developed in Indonesia. Indonesia's geothermal energy potential is recorded at 28,579 MW but only used for electricity generation of around 1,948.5 MW. Investment in geothermal power plants is an investment that is capital intensive with high investment risk factors. This study aims to determine the financial feasibility of investing in geothermal power plants in the Gedongsongo geothermal field with 55 MWe of potential electrical energy. Also, research is conducted to find out from the beginning of the project implementation to the end of the project's economic life and to determine the feasibility level of the financial feasibility of investment in the project. The results of investment analysis using sensitivity analysis, indicating that price movements in project calculations have a significant influence on changes in NPV. Sensitivity analysis is carried out on several parameters that affect the project value (in the form of NPV) with a Low Case of 70% parameter value and High Case of 130%. The inflation rate for operating costs such as O & M, Make-Up Well Drilling, and Overhaul is assumed to be 2% per year. Project financing is expected to originate from personal capital of 30% and loans of 70% with interest rates (interest) of 4% per year. To get the value of the internal rate of return on personal capital or the Equity Internal Rate of Return by PLN standards of 14%, the electricity tariff for the Gedongsongo Geothermal power plant is 11.47 cents/ kWh.