IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-05-8.html
   My bibliography  Save this article

An Optimum Financing Scheme for Baseload Thin-film and Monocrystalline PV Plants in Indonesia

Author

Listed:
  • Zainal Arifin

    (PT PLN (Persero), Jakarta Selatan 12160, Indonesia)

  • Ria Septiyanthy

    (Institut Teknologi PLN, Jakarta Barat 11750, Indonesia)

  • Desti Alkano

    (Energy Academy Indonesia, Kediri 64112, Indonesia,)

  • Fauzan Hanif Jufri

    (Department of Electrical Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16425, Indonesia)

  • Budi Sudiarto

    (Department of Electrical Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16425, Indonesia)

Abstract

This paper investigates the most optimum financing scheme for medium-scale grid-connected PV plant investments in Indonesia. Eleven (11) financing schemes, composed through the combination of Viability Gap Fund (VGF), international grant, tax incentives, and low loan interest, are studied. The electricity tariff resulted from each financing scheme is analyzed and compared to the applicable feed-in tariff to find the optimum financing scheme. Moreover, this paper also includes two types of PV modules, such as thin-film and monocrystalline. The result shows that the funding combination consists of 50% of capital expenditure (CAPEX) from VGF provided by the Government of Indonesia (GoI), 30% of CAPEX provided by the international grant, and 5% of loan interest results in the optimum financing scheme. The resulting electricity tariffs from this financing scheme are 571.04 IDR/kWh and 761.76 IDR/kWh for thin-film and monocrystalline PV plants, respectively, which is below the lowest existing feed-in tariff (985 IDR/kWh).

Suggested Citation

  • Zainal Arifin & Ria Septiyanthy & Desti Alkano & Fauzan Hanif Jufri & Budi Sudiarto, 2021. "An Optimum Financing Scheme for Baseload Thin-film and Monocrystalline PV Plants in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 52-58.
    • Handle: RePEc:eco:journ2:2021-05-8
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/11387/6000
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/11387/6000
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Amin, Nowshad & Lung, Chin Wen & Sopian, Kamaruzzaman, 2009. "A practical field study of various solar cells on their performance in Malaysia," Renewable Energy, Elsevier, vol. 34(8), pages 1939-1946.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Syed Zahurul Islam & Mohammad Lutfi Othman & Muhammad Saufi & Rosli Omar & Arash Toudeshki & Syed Zahidul Islam, 2020. "Photovoltaic modules evaluation and dry-season energy yield prediction model for NEM in Malaysia," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-25, November.
    2. Nadda, Rahul & Kumar, Anil & Maithani, Rajesh, 2018. "Efficiency improvement of solar photovoltaic/solar air collectors by using impingement jets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 331-353.
    3. Muhammad Aslam Mohd Safari & Nurulkamal Masseran & Alias Jedi & Sohif Mat & Kamaruzzaman Sopian & Azman Bin Abdul Rahim & Azami Zaharim, 2020. "Rural Public Acceptance of Wind and Solar Energy: A Case Study from Mersing, Malaysia," Energies, MDPI, vol. 13(15), pages 1-24, July.
    4. Siddiqui, Osman K. & Zubair, Syed M., 2017. "Efficient energy utilization through proper design of microchannel heat exchanger manifolds: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 969-1002.
    5. Adinoyi, Muhammed J. & Said, Syed A.M., 2013. "Effect of dust accumulation on the power outputs of solar photovoltaic modules," Renewable Energy, Elsevier, vol. 60(C), pages 633-636.
    6. Rajkumar, Vikram A. & Weijers, Cees & Debije, Michael G., 2015. "Distribution of absorbed heat in luminescent solar concentrator lightguides and effect on temperatures of mounted photovoltaic cells," Renewable Energy, Elsevier, vol. 80(C), pages 308-315.
    7. Zaihidee, Fardila Mohd & Mekhilef, Saad & Seyedmahmoudian, Mehdi & Horan, Ben, 2016. "Dust as an unalterable deteriorative factor affecting PV panel's efficiency: Why and how," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1267-1278.
    8. Md Muhibbullah & Rafia Afroz & Jarita Duasa, 2021. "Solar Photovoltaic Panels in Malaysian Homes: An Economic Analysis and Survey of Public Opinion," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 454-464.
    9. Lau, K.Y. & Muhamad, N.A. & Arief, Y.Z. & Tan, C.W. & Yatim, A.H.M., 2016. "Grid-connected photovoltaic systems for Malaysian residential sector: Effects of component costs, feed-in tariffs, and carbon taxes," Energy, Elsevier, vol. 102(C), pages 65-82.
    10. Mekhilef, S. & Saidur, R. & Kamalisarvestani, M., 2012. "Effect of dust, humidity and air velocity on efficiency of photovoltaic cells," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2920-2925.
    11. Humada, Ali M. & Aaref, Ashty M. & Hamada, Hussein M. & Sulaiman, Mohd Herwan & Amin, Nowshad & Mekhilef, Saad, 2018. "Modeling and characterization of a grid-connected photovoltaic system under tropical climate conditions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2094-2105.
    12. Bahaidarah, Haitham M.S. & Baloch, Ahmer A.B. & Gandhidasan, Palanichamy, 2016. "Uniform cooling of photovoltaic panels: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1520-1544.
    13. Muhammad-Sukki, Firdaus & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & McMeekin, Scott G. & Stewart, Brian G., 2011. "An evaluation of the installation of solar photovoltaic in residential houses in Malaysia: Past, present, and future," Energy Policy, Elsevier, vol. 39(12), pages 7975-7987.
    14. Muhammad-Sukki, Firdaus & Munir, Abu Bakar & Ramirez-Iniguez, Roberto & Abu-Bakar, Siti Hawa & Mohd Yasin, Siti Hajar & McMeekin, Scott G. & Stewart, Brian G., 2012. "Solar photovoltaic in Malaysia: The way forward," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5232-5244.
    15. Saber, Esmail M. & Lee, Siew Eang & Manthapuri, Sumanth & Yi, Wang & Deb, Chirag, 2014. "PV (photovoltaics) performance evaluation and simulation-based energy yield prediction for tropical buildings," Energy, Elsevier, vol. 71(C), pages 588-595.
    16. B, Prabhu & A, Valan Arasu & P, Gurusamy & A, Amala Mithin Minther Singh & T, Arunkumar, 2024. "Solar photovoltaic cooling using Paraffin phase change material: Comprehensive assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    17. Lau, K.Y. & Tan, C.W. & Yatim, A.H.M., 2015. "Photovoltaic systems for Malaysian islands: Effects of interest rates, diesel prices and load sizes," Energy, Elsevier, vol. 83(C), pages 204-216.

    More about this item

    Keywords

    Thin-film PV; Monocrystalline PV; feed-in tariff; economic feasibility; financing scheme;
    All these keywords.

    JEL classification:

    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • P49 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-05-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.