Potential and Feasibility Analysis of Biomass Energy from Palm Oil Mills on North Penajam Paser Regency Region

Abstract

This paper would present a techno-economic potential and feasibility analysis in the planning of renewable energy from palm oil mills on the North Penajam Paser Regency. The analysis was done based on the last three-year production data history of 7 (seven) palm oil processing factories in the region. The total fresh fruit bunches processed were about 891.624 tons/year. The total potential electricity generated from palm oil residue reached 28.009 kWh. This analysis aimed to get a comprehensive insight from the potential biomass energy that exists at the research locations and conduct a feasibility study based on techno-economic analysis to develop renewable energy of new state capital Indonesia and the supporting regions. The technology helps evaluate the technical planning of installations that are possible to build in the area. The economic aspect of sustainability evaluates the net present value (NPV), internal rate of return (IRR), and the payback period of renewable energy installation. The results showed that North Penajam Paser Regency could generate 78,927,223 kWh in a year with a feed-in tariffs is 1,223.481 IDR/kWh. The electricity was feasible to offer to the government electrical company. Moreover, this project had a good NPV and IRR for private investors.