Techno – Economic Evaluation of Utilizing CPO as Fuel Replacement for Existing Diesel Power Plant
Arionmaro Asi Simaremare (a*), Nur Cahyo (a), Harry Indrawan (a)

Generation Research Division, PLN Research Institute, Jl. Duren Tiga Selatan No. 102, Jakarta Selatan 12760, Indonesia

Abstract

Indonesia as stated in General National Energy Plan (RUEN) aims to achieve 23% of new and renewable energy in its energy mix by 2025. One of the ways to achieve this goal is by replacing existing diesel power plant fuel from fossil based diesel to biofuel and crude palm oil or CPO. CPO is envisaged very potential fuel substitutes especially for low and medium speed diesel engine due to its simple process to acquired and availability in Indonesia. This study aims to evaluate the viability of CPO utilization as fuel replacement for low and medium speed diesel engine compared to high speed diesel from economic perspective using levelised cost of electricity (LCOE) calculation taking into account technical considerations. The impact of CPO usage for energy production to the palm fruit farmer community also briefly discussed. This study finds that CPO is economically viable to be used as diesel engine fuel replacement under certain technical and diesel price considerations. The continuity of the replacement project also plays important role in determining the economic feasibility of fuel replacement by CPO. Certain incentives to palm farmers may also need to be passed on by the government to maintain the sustainability of the fuel replacement project.

Keywords: CPO, LCOE, diesel power plant

Topic: Electrical Engineering