Feasibility Study Analysis on Run-Off-Natural River Mini-Hydro Power Plant Business Development

Renewable energy is energy to produce electricity that can be obtained from natural resources that can be constantly replenished. One of the main potential sources of renewable energy in Indonesia is the mini-hydropower plant. The main objective of this paper is to present an analytical of technical and economic feasibility study of the run-off natural river mini-hydropower plant project. On the technical side, the most important element is a topographical and hydrological analysis which will affect the annual energy production. The hydrological analysis in this project are using methods of flow rate from the current meter and manning equation. On the economical side, the most important elements are financial and investment analysis. The studied site is located at Banjaran river, Ketenger village, Banyumas district, Central Java province. In this location, get flow rate is 3.15 m3/s, and the head is 68.5 m. From experimental, calculation and analysis, this mini-hydropower plant can generate power at 10 GWh per year, In terms of economic feasibility, after-tax IRR equity at 34.5%, after-tax IRR assets at 13.7%, the Payback Period for this project is 4.9 years. Respectively the development of the run-of-natural river mini-hydropower plant has an advantage, such a feed-in tariff trends continues to increase, direct sales, long time power purchase agreement duration, high net income, and no penalties. Based on all of the experimental, calculations and analysis mean that development on the run-of-natural river mini-hydropower plant is feasible to the renewable energy business.