Cost Benefit Analysis of Hybrid PV On Grid-Cold Storage Containers in Remote Areas of Indonesia

Abstract

Indonesia has a huge potential for fish resources, reaching 6.4 million tons annually. Cooling fish is one of the processes commonly used to treat fish spoilage. One of the popular types of fish cooling media is cold storage container (CSC). The reliability of the electricity supply for CSC is one of the obstacles in remote areas in Indonesia. Solar energy can be combined into Hybrid PV on the grid, potentially reducing CSC operational costs. Cost Benefit Analysis (CBA) is needed to assess the economic feasibility of the technology. This research was conducted by calculating athe investment and operational costs as well as studying the value of the benefits of implementing an On-Grid hybrid system with PV. The energy required for CSC operations is 30 kWh per day, and when the electricity supply is unreliable, it is 5 kWh per day. The energy produced in solar power plant is 25 kWh per day. The investment cost of the subsidy in this project is Rp. 539,556,000 and annual operating costs of Rp. 270,811,946. The NPV value reached Rp2,415,808,506.13; IRR of 16.15%; payback period of 8.56. The benefits obtained from implementing the PV On Grid hybrid system for the CSC project include CSC industrial production income, electricity cost savings from using PV On Grid, increasing business income in the fisheries sector, and energy reliability in supplying cold storage in remote areas.