Feasibility Study of a Microgrid for Electrifying the Isolated Area

Tengku Reza Suka Alaqsa; Zulfatri Aini; Ewe Win Eng

doi:10.21831/jee.v9i1.78828

Feasibility Study of a Microgrid for Electrifying the Isolated Area

Tengku Reza Suka Alaqsa, Universitas Islam Negeri Sultan Syarif Kasim Riau, Riau, Indonesia, Indonesia
Zulfatri Aini, Universitas Islam Negeri Sultan Syarif Kasim Riau, Riau, Indonesia, Indonesia
Ewe Win Eng, Research Associate at the University of Strathclyde, Glasgow, United Kingdom, United Kingdom

10.21831/jee.v9i1.78828

Abstract

Guha Village in Aceh Singkil lacks access to electricity from PLN, with challenging road conditions further complicating energy access. This study explores a feasible microgrid solution, assessing local renewable energy potential and economic viability using HOMER Pro software. Calculations reveal an annual energy demand of 97,334 kWh for 41 households. The analysis identifies a standalone micro-hydro system as the most cost-effective option, capable of partially meeting this demand with an annual output of 296,077 kWh. However, due to a distribution efficiency of 79.6%, the effective supply is 235,961 kWh per year. Financially, the micro-hydro system offers significant advantages, reducing the Net Present Cost (NPC) from Rp5.82 billion to Rp1.10 billion, despite a higher initial capital requirement of Rp825 million. With minimal O&M costs of Rp15 million annually and a Levelized Cost of Energy (LCOE) of Rp987.66/kWh, the system demonstrates substantial long-term savings. Investment metrics show a 49% Internal Rate of Return (IRR), 44% Return on Investment (ROI), and a two-year payback period, making the micro-hydro system a sustainable as cost effective energy solution for Guha Village.

Keywords

microgrid, feasibility, isolated area, HOMER Pro

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DOI: https://doi.org/10.21831/jee.v9i1.78828