Carbon credit and economic feasibility analysis of biomass-solar PV-battery power plant for application in Nusa Penida - Bali

The need for renewable energy is highly increasing worldwide to fulfil energy demand as well as reduce the impact of global warming. Indonesia as the most extensive archipelago face real challenge to power its remote areas with green electricity. This paper assesses economically the idea of hybrid power plant of solar and/or biomass to electrify Indonesian remote areas with green electricity. Furthermore, the carbon credit as an additional income of this project is estimated using CDM methodology. The project is proposed in Sakti, Batukandik, and Batumadeg villages in Nusa Penida Island, Bali; the ER are 7460.57, 2587.10, and 9044.84 tCO2e/year, accordingly. The IRR is analyzed under two scenarios: the initial electricity cost of USD 0.15/kWh and the reduced cost of USD 0.10/kWh including carbon credits and biochar sales. The sensitivity analysis is conducted to observe the effect of most tentative variables towards the IRR. Furthermore, determining the feasibility of this project by analyzing the ERR is assessed to be important, whether it is profitable for the community or not. For the ERR analysis, there are two results calculations. The ERR value with the application of carbon credits shows 32.66%. In comparison, the ERR value without the application of carbon credits shows 28.19%. These values are obtained from several parameter calculations in the ERR analysis in this study. It consists of a consumer surplus, which is computed from the benefits obtained by PLN. Then, the producer surplus and job increases are computed from the benefits obtained by the community if this project is executed. This paper result has essential role in contribution to social, economic, and environmental goal for sustainable development and supporting national economic activities.