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Integrated Nuclear-Renewable Energy System for Industrialization in West Nusa Tenggara Province, Indonesia: Economic, Potential Site, and Policy Recommendation

Author

Listed:
  • Erwan Hermawan

    (Directorate Research, Technology, and Innovation Policy, National Research and Innovation Agency, Jl. Thamrin, Jakarta, Indonesia,)

  • Usman Sudjadi

    (Center for Nuclear Fuel Technology, National Research and Innovation Agency, Kawasan PUSPIPTEK Gd. 20, Indonesia)

Abstract

Industrialization on renewable energy is needed to begin to avoid dependence on fossil fuels. West Nusa Tenggara (NTB) Province has the potential for the development of bioethanol which is integrated with the Small Modular Reactor (SMR) nuclear reactor. Through this study, the economics of sugar- ethanol plant and SMR reactors was calculated, as well as development schemes supported by policy recommendations will be presented. This study uses cash flow modelling from a sugar-ethanol plant and SMR to determine the economics of the project. The potential site is mapped by using scoring method to obtain the best location. The SMR reactor can operate with Internal Rate of Return (IRR) of 9%, Net Present Value (NPV) USD 2,325,347,181, and payback period 13 years. The sugar-ethanol plant has IRR of 12.6%, NPV 441,278,716, and payback period of 10 years. The appropriate locations for the construction of the SMR reactor are in Bima and Dompu districts, based on mapping analysis both locations have potential for future development.

Suggested Citation

  • Erwan Hermawan & Usman Sudjadi, 2022. "Integrated Nuclear-Renewable Energy System for Industrialization in West Nusa Tenggara Province, Indonesia: Economic, Potential Site, and Policy Recommendation," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 146-159, July.
    • Handle: RePEc:eco:journ2:2022-04-19
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    References listed on IDEAS

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    More about this item

    Keywords

    Small Modular Reactor; Sugar; Ethanol; Economics; Mapping; Policy;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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