IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i1p140-d125734.html
   My bibliography  Save this article

Perceived and Reported Reliability of the Electricity Supply at Three Urban Locations in Indonesia

Author

Listed:
  • Kunaifi

    (Department of Design, Production and Management, Faculty of Engineering Technology, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands
    Department of Electrical Engineering, Faculty of Science and Technology, UIN Suska Riau University, Jl. H.R. Soebrantas No. 115, Pekanbaru 28292, Indonesia)

  • Angèle Reinders

    (Department of Design, Production and Management, Faculty of Engineering Technology, University of Twente, P.O. Box 217, 7500 AE Enschede, The Netherlands)

Abstract

This paper focuses on the reliability of electricity supply at three different locations in Indonesia, namely in Sumatra, Timor, and Papua, through a comparison of reported indices of power reliability (SAIFI and SAIDI) and experimental results from user surveys and power measurements. The reason for this study is the lack of information about the actual, quantified reliability of power supplied by the main grid in Indonesia, while narratives of end-users indicate the reliability might be unsatisfactory. The study was executed using data from 114 randomly-selected respondents in the city of Pekanbaru in Sumatra, 65 in the city of Kupang in Timor and 26 in the city of Jayapura in Papua, totaling 205 respondents. These users experienced a higher unavailability of power delivered by the grid than expressed by the utility-reported SAIDI and SAIFI. Therefore, for this study, new indices are introduced, namely the Perceived (P) SAIDI and SAIFI, which are based on the frequency and duration of blackouts experienced by the users. It is concluded that the reported reliability indices do not always demonstrate the experience of the grid users. P-SAIFIs were 1.3 to 4.6 times higher in Pekanbaru and Kupang, respectively than the utility-reported SAIFIs for the same provinces. Also, P-SAIDIs were 2.6 to 3.9 times higher in Pekanbaru and Kupang, respectively, than the utilities’ SAIDIs. It is therefore not surprising that depending on the location, 14% to 65% of the users own a backup generator and that households are willing to pay $3 to $8 extra per monthly electricity bill or $1c–$3c per kWh for improved reliability.

Suggested Citation

  • Kunaifi & Angèle Reinders, 2018. "Perceived and Reported Reliability of the Electricity Supply at Three Urban Locations in Indonesia," Energies, MDPI, vol. 11(1), pages 1-27, January.
  • Handle: RePEc:gam:jeners:v:11:y:2018:i:1:p:140-:d:125734
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/1/140/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/11/1/140/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jimenez, Raul & Serebrisky, Tomas & Mercado, Jorge, 2016. "What does “better” mean? Perceptions of electricity and water services in Santo Domingo," Utilities Policy, Elsevier, vol. 41(C), pages 15-21.
    2. Sagebiel, Julian, 2017. "Preference heterogeneity in energy discrete choice experiments: A review on methods for model selection," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 804-811.
    3. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2016. "Achieving Universal Electricity Access in Indonesia," ADB Reports RPT167922, Asian Development Bank (ADB).
    4. Murphy, Patrick Mark & Twaha, Ssennoga & Murphy, Inês S., 2014. "Analysis of the cost of reliable electricity: A new method for analyzing grid connected solar, diesel and hybrid distributed electricity systems considering an unreliable electric grid, with examples ," Energy, Elsevier, vol. 66(C), pages 523-534.
    5. Ozbafli, Aygul & Jenkins, Glenn P., 2016. "Estimating the willingness to pay for reliable electricity supply: A choice experiment study," Energy Economics, Elsevier, vol. 56(C), pages 443-452.
    6. Bartczak, Anna & Chilton, Susan & Czajkowski, Mikołaj & Meyerhoff, Jürgen, 2017. "Gain and loss of money in a choice experiment. The impact of financial loss aversion and risk preferences on willingness to pay to avoid renewable energy externalities," Energy Economics, Elsevier, vol. 65(C), pages 326-334.
    7. Fredrik Carlsson & Peter Martinsson, 2007. "Willingness to Pay among Swedish Households to Avoid Power Outages: A Random Parameter Tobit Model Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 75-90.
    8. Shin, Jungwoo & Hwang, Won-Sik, 2017. "Consumer preference and willingness to pay for a renewable fuel standard (RFS) policy: Focusing on ex-ante market analysis and segmentation," Energy Policy, Elsevier, vol. 106(C), pages 32-40.
    9. Yusep Suparman & Henk Folmer & Johan H.L. Oud, 2016. "The willingness to pay for in-house piped water in urban and rural Indonesia," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 407-426, June.
    10. Kalkbrenner, Bernhard J. & Yonezawa, Koichi & Roosen, Jutta, 2017. "Consumer preferences for electricity tariffs: Does proximity matter?," Energy Policy, Elsevier, vol. 107(C), pages 413-424.
    11. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    12. Matsukawa, Isamu & Fujii, Yoshifumi, 1994. "Customer Preferences for Reliable Power Supply: Using Data on Actual Choices of Back-Up Equipment," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 434-446, August.
    13. Hasan, M.H. & Mahlia, T.M.I. & Nur, Hadi, 2012. "A review on energy scenario and sustainable energy in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2316-2328.
    14. Erahman, Qodri Febrilian & Purwanto, Widodo Wahyu & Sudibandriyo, Mahmud & Hidayatno, Akhmad, 2016. "An assessment of Indonesia's energy security index and comparison with seventy countries," Energy, Elsevier, vol. 111(C), pages 364-376.
    15. Kirubi, Charles & Jacobson, Arne & Kammen, Daniel M. & Mills, Andrew, 2009. "Community-Based Electric Micro-Grids Can Contribute to Rural Development: Evidence from Kenya," World Development, Elsevier, vol. 37(7), pages 1208-1221, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirosław Kornatka & Tomasz Popławski, 2021. "Advanced Metering Infrastructure—Towards a Reliable Network," Energies, MDPI, vol. 14(18), pages 1-12, September.
    2. Hyo-Jin Kim & Sung-Min Kim & Seung-Hoon Yoo, 2019. "Economic Value of Improving Natural Gas Supply Reliability for Residential Consumers in South Korea," Sustainability, MDPI, vol. 11(2), pages 1-10, January.
    3. Peter Holcsik & Judith Pálfi & Miklos Tompa & Janusz Grabara & Zsolt Čonka & Michal Kolcun & Mihai Avornicului & Karol Jędrasiak, 2020. "Management of Smart Switchboard Placement to Enhance Distribution System Reliability," Energies, MDPI, vol. 13(6), pages 1-13, March.
    4. Amrita Raghoebarsing & Angèle Reinders, 2019. "The Role of Photovoltaics (PV) in the Present and Future Situation of Suriname," Energies, MDPI, vol. 12(1), pages 1-16, January.
    5. Doo-Chun Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Valuing Improved Power Supply Reliability for Manufacturing Firms in South Korea: Results from a Choice Experiment Survey," Sustainability, MDPI, vol. 10(12), pages 1-12, November.
    6. Yuanqian Ma & Xianyong Xiao & Ying Wang, 2018. "Investment Strategy and Multi–Objective Optimization Scheme for Premium Power under the Background of the Opening of Electric Retail Side," Energies, MDPI, vol. 11(8), pages 1-25, August.
    7. Masako Numata & Masahiro Sugiyama & Wunna Swe & Daniel del Barrio Alvarez, 2021. "Willingness to Pay for Renewable Energy in Myanmar: Energy Source Preference," Energies, MDPI, vol. 14(5), pages 1-17, March.

    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. Majid Hashemi & Glenn P. Jenkins & Roop Jyoti & Aygul Ozbafli, 2018. "Evaluating the Cost to Industry of Electricity Outages," Development Discussion Papers 2018-14, JDI Executive Programs.
    2. Alastaire S na ALINSATO, 2015. "Economic Valuation of Electrical Service Reliability for Households in Developing Country: A Censored Random Coefficient Model Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 352-359.
    3. Musiliu O. Oseni, 2017. "Self-Generation and Households' Willingness to Pay for Reliable Electricity Service in Nigeria," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    4. Hyo-Jin Kim & Sung-Min Kim & Seung-Hoon Yoo, 2019. "Economic Value of Improving Natural Gas Supply Reliability for Residential Consumers in South Korea," Sustainability, MDPI, vol. 11(2), pages 1-10, January.
    5. Marcos Perroni & Luciano Luiz Dalazen & Wesley Vieira da Silva & Sergio Eduardo Gouv a da Costa & Claudimar Pereira da Veiga, 2015. "Evolution of Risks for Energy Companies from the Energy Efficiency Perspective: The Brazilian Case," International Journal of Energy Economics and Policy, Econjournals, vol. 5(2), pages 612-623.
    6. Doo-Chun Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Valuing Improved Power Supply Reliability for Manufacturing Firms in South Korea: Results from a Choice Experiment Survey," Sustainability, MDPI, vol. 10(12), pages 1-12, November.
    7. Lehmann, Nico & Sloot, Daniel & Schüle, Christopher & Ardone, Armin & Fichtner, Wolf, 2023. "The motivational drivers behind consumer preferences for regional electricity – Results of a choice experiment in Southern Germany," Energy Economics, Elsevier, vol. 120(C).
    8. Carlsson, Fredrik & Demeke, Eyoual & Martinsson, Peter & Tesemma, Tewodros, 2020. "Cost of power outages for manufacturing firms in Ethiopia: A stated preference study," Energy Economics, Elsevier, vol. 88(C).
    9. Mozumder, Pallab & Vásquez, William F. & Marathe, Achla, 2011. "Consumers' preference for renewable energy in the southwest USA," Energy Economics, Elsevier, vol. 33(6), pages 1119-1126.
    10. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    11. Deendarlianto, & Widyaparaga, Adhika & Sopha, Bertha Maya & Budiman, Arief & Muthohar, Imam & Setiawan, Indra Chandra & Lindasista, Alia & Soemardjito, Joewono & Oka, Kazutaka, 2017. "Scenarios analysis of energy mix for road transportation sector in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 13-23.
    12. Oseni, Musiliu O., 2015. "Assessing the consumers’ willingness to adopt a prepayment metering system in Nigeria," Energy Policy, Elsevier, vol. 86(C), pages 154-165.
    13. Amoah, Anthony & Ferrini, Silvia & Schaafsma, Marije, 2019. "Electricity outages in Ghana: Are contingent valuation estimates valid?," Energy Policy, Elsevier, vol. 135(C).
    14. Anna Kowalska-Pyzalska, 2019. "Do Consumers Want to Pay for Green Electricity? A Case Study from Poland," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    15. Meles, Tensay Hadush & Lokina, Razack & Mtenga, Erica Louis & Tibanywana, Julieth Julius, 2023. "Stated preferences with survey consequentiality and outcome uncertainty: A split sample discrete choice experiment," EfD Discussion Paper 23-16, Environment for Development, University of Gothenburg.
    16. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2021. "The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany," Energy Economics, Elsevier, vol. 100(C).
    17. Groh, Elke D., 2022. "Exposure to wind turbines, regional identity and the willingness to pay for regionally produced electricity," Resource and Energy Economics, Elsevier, vol. 70(C).
    18. Hashemi, Majid, 2021. "The economic value of unsupplied electricity: Evidence from Nepal," Energy Economics, Elsevier, vol. 95(C).
    19. Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2011. "The effect of power outages and cheap talk on willingness to pay to reduce outages," Energy Economics, Elsevier, vol. 33(5), pages 790-798, September.
    20. Taro Ohdoko & Satoru Komatsu & Shinji Kaneko, 2013. "Residential preferences for stable electricity supply and a reduction in air pollution risk: a benefit transfer study using choice modeling in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(3), pages 309-328, July.

    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:gam:jeners:v:11:y:2018:i:1:p:140-:d:125734. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.