Year: 2026 | Month: January | Volume: 13 | Issue: 1 | Pages: 42-50
DOI: https://doi.org/10.52403/ijrr.20260105
Techno-Economic Assessment Using LCOE for a Centralized Solar Power Plant Design at the PLN UIP3B Kalimantan
Agus Tego Santoso1, Achmad Syamsu Hidayat2, Kissinger3, Abdul Ghofur4
1Natural Resources and Environmental Management Study Program, Lambung Mangkurat University
2Fisheries Socio-Economic Study Program, Lambung Mangkurat University
3Forestry, Lambung Mangkurat University
4Mechanical Engineering Study Program, Lambung Mangkurat University.
Corresponding Author: Agus Tego Santoso
ABSTRACT
The transition toward low-carbon energy systems requires accelerated deployment of renewable generation technologies, including photovoltaic (PV) systems. This study evaluates the techno-economic feasibility of a proposed 809 kWp centralized off-grid solar PV installation for the PLN UIP3B Kalimantan operational facility in Banjarbaru, Indonesia. Annual energy demand was quantified using historical consumption data, resulting in a required annual energy production of 284,323.32 kWh. The economic assessment employed a Life Cycle Cost (LCC) framework, Levelized Cost of Electricity (LCOE), and financial feasibility indicators including Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost Ratio (BCR). LCOE values ranged between IDR 432.26/kWh and IDR 465.04/kWh across sensitivity scenarios, reflecting O&M cost variation of 1.0–2.0% of total capital cost. The financial assessment produced negative NPV and IRR values below the discount rate when externalities were excluded, indicating that the project is not financially viable under conventional economic assumptions. However, when environmental and public health externalities, quantified using the Social Cost of Carbon and pollution-related health damage coefficients, were integrated into the analysis, NPV and BCR values shifted significantly into viable ranges, demonstrating strong socio-economic feasibility. The findings conclude that while the centralized PV system is not commercially feasible under traditional investment criteria, it becomes economically justified when external benefits are monetized, supporting its deployment as a strategic clean-energy intervention aligned with Indonesia’s energy transition and emission-reduction objectives.
Keywords: LCOE, techno-economic analysis, off-grid photovoltaic power plant, externality valuation, Indonesia, renewable energy policy.
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