A Techno-Economic Evaluation of Municipal Solid Waste (MSW) Conversion to Energy in Indonesia

Muhammad Mufti Azis, Jonas Kristanto and Chandra Wahyu Purnomo
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Muhammad Mufti Azis: Department of Chemical Engineering, Faculty of Engineering, Universitas Gadjah Mada, Yogyakarta 55281, Indonesia
Jonas Kristanto: Department of Chemical Engineering, Faculty of Engineering, Universitas Gadjah Mada, Yogyakarta 55281, Indonesia
Chandra Wahyu Purnomo: Department of Chemical Engineering, Faculty of Engineering, Universitas Gadjah Mada, Yogyakarta 55281, Indonesia

Sustainability, 2021, vol. 13, issue 13, 1-10

Abstract: Municipal solid waste (MSW) processing is still problematic in Indonesia. From the hierarchy of waste management, it is clear that energy recovery from waste could be an option after prevention and the 5R (rethink, refuse, reduce, reuse, recycle) processes. The Presidential Regulation No 35/2018 mandated the acceleration of waste-to-energy (WtE) plant adoption in Indonesia. The present study aimed to demonstrate a techno-economic evaluation of a commercial WtE plant in Indonesia by processing 1000 tons of waste/day to produce ca. 19.7 MW of electricity. The WtE electricity price is set at USD 13.35 cent/kWh, which is already higher than the average household price at USD 9.76 cent/kWh. The capital investment is estimated at USD 102.2 million. The annual operational cost is estimated at USD 12.1 million and the annual revenue at USD 41.6 million. At this value, the internal rate of return (IRR) for the WtE plant is 25.32% with a payout time (PoT) of 3.47 years. In addition, this study also takes into account electricity price sales, tipping fee, and pretreatment cost of waste. The result of a sensitivity analysis showed that the electricity price was the most sensitive factor. This study reveals that it is important to maintain a regulated electricity price to ensure the sustainability of the WtE plant in Indonesia.

Keywords: techno-economic analysis; waste to energy; municipal solid waste; Indonesia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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