3rd South American International Conference on Industrial Engineering and Operations Management

SELECTION OF POWER PLANT MANAGEMENT IN ORDER TO DE-DIESELISATION PROGRAM OF PLTD KANGEAN USING ANALYTICAL HIERARCHY PROCESS (AHP) AND GOAL PROGRAMMING

Dwi Septyan Waluyo & Udisubakti Ciptomulyono
Publisher: IEOM Society International
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Track: Masters Thesis Competition

Various challenges have been faced by PLN in carrying out its commitment to providing electricity to all corners of the archipelago and improving the reliability of services at affordable rates. Reduce the cost of supply (BPP) including by continuing to reduce the use of fossil fuel and optimizing cheaper primary energy sources in order to carry out the Government's mandate to maintain electricity prices to stabilize people's purchasing power, industrial competitiveness and target renewable energy (RE) in the energy mix by 2025 of at least 23%, a De-dieselization program was created. Several alternatives are offered in the form of isolated plant management models. Whether later the management of the plant will continue to be carried out by PLN or assignment to subsidiaries with Independent Power Producer (IPP) with Power Purchase Agreement scheme based on the calculation of the optimum Levelized Cost of Energy (LCoE). Decision making uses the AHP method as a quantitative weighting method from qualitative data by PLN management respondents which is integrated with the Goal Programming method. Based on the AHP weighting on the sub-criteria, it was found that the LCOE / BPP had the highest weight of 0.304 and the respondents' preference for alternative PV-Diesel (IPP) was 24.4% compared to other alternatives. Based on the integration of AHP-Goal Programming, the most optimal achievement vector value was obtained in the alternative PV-Diesel (PLN) with Min Z of 873.90 (4 of the 6 Goals achieved), IRR 11.53%, LCOE / BPP Rp 2,860 / kWh and EAF 93.28%.

Published in: 3rd South American International Conference on Industrial Engineering and Operations Management

Publisher: IEOM Society International
Date of Conference: May 10-12, 2022

ISBN: 978-1-7923-9159-0
ISSN/E-ISSN: 2169-8767