Application of micro hydro power plant in Indonesia

By Ahmad Suhendra

Scheme "on the grid" is less attractive to investors because the electrical energy produced by microhydro or minihidro power plant valued more cheaply by PLN (in Java Rp 432/kWh) than the electrical energy produced by other sources (eg fossil) , resulting in payback period becomes longer than 5 years. Also invested too risky, because the rate of environmental degradation (forest), which is high at 1.08 million hectares per year that could threaten the availability of water for the survival of micro hydropower plant so that the old design is not achieved. For the scheme "off the grid" there are still opportunities for investors because they do not have to sell electricity to PLN, but directly to consumers, particularly for rural areas that are not grid.

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