Planning of Garbage Power Plant (PLTSA): Case in Medan City
E. Warman
1
, N. Purba
1
and F. Fahmi
1
1
Department of Electrical Engineering, Universitas Sumatera Utara, Jl.AbdulHakimNo.4,Medan,Indonesia
Keywords: Net Present Value, Internal Rate of Return, Benefit Cost Ratio
Abstract:: Electricity crisis in Medan city causing serious problem and this problem can be overcome by building Waste
Power Generation (PLTSa) in Medan City. Therefore this study aims to determine the feasibility of planning
of Waste Power Generation (PLTSa) from the economic aspect conducted at TPA Terjun in Medan city by
using incenerator type. The method used was the least cost method to calculate the economic aspect analysis
by determining the value of NPV (Net Present Value), IRR (Internal Rate of Return), BCR (Benefit Cost
Ratio), and PP (Payback Period). From the research results it can be seen that to build PLTSa in Medan city
it required investment cost of Rp 70,268,968,000 from the production of electricity 22.90 MW. To determine
the feasibility of this project planning is obtained NVP value = Rp 249.136.817.059, IRR = 54.6%, BCR =
13.71 and PP = 1.8 years, so from the results PLTSa development planning project in the city of Medan can
meet the criteria feasibility to build.
1 INTRODUCTION
Waste into energy is a renewable energy source that
can be converted into electrical energy through heat
generated in combustion process above 850 ° C
(Safrizal, 2014). Currently, power generation using
waste power into the world's attention where garbage
that usually becomes so disgusting for everyone now
can be used as Power Plant (PTLSa).
In addition to electricity that has become a
primary need in human life, it must have the power
that available to meet the needs in the midst of
society. The higher the desired demand than the
existing power supply. So there was a blackout (byar
pet) in various regions, especially in the city of
Medan. Until now the Government and PLN are
struggling to continue to meet the needs of the
community supported by the Government's plan to
create electrical power of 35,000 MW in Indonesia to
remove pet byar from Indonesia.
The city of Medan, the capital of North Sumatra
Province, is the 3rd largest city in Indonesia with a
population of more than 2 million people with a
population density of 7,657 inhabitants/km
2
. The
multitude of activities undertaken by millions of
people in the city of Medan forces the existence of a
quality and continuous plant to fulfill services and
activities in government, education, industry, and
many other things that must be met. But as we already
know today, many of the existing generating units to
meet the electric power of the city of Medan are
getting old and unable to operate maximally, plus the
difficulty of obtaining licenses to establish a
generator either from the government or from the
surrounding community.
Therefore, the choice of waste to be a renewable
energy source is potential choice, which is where
today many generating units depend on unstable and
unstable fossil fuels and fossil fuels. While the waste
is a thing that has been much wasted and like useless,
but if the meticulous or in good use can make an
important need such as making it a renewable power
station in the city of Medan.
2 MATERIAL AND METHODS
2.1 Trash
Waste is the residual material in solid form from the
end result of a process. In accordance with the Law
No.18 Year 2008 on Waste Management, clearly
Warman, E., Purba, N. and Fahmi, F.
Planning of Garbage Power Plant (PLTSA): Case in Medan City.
DOI: 10.5220/0010090903170322
In Proceedings of the International Conference of Science, Technology, Engineering, Environmental and Ramification Researches (ICOSTEERR 2018) - Research in Industry 4.0, pages
317-322
ISBN: 978-989-758-449-7
Copyright
c
2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
317
stated in Article 4 it says "Waste processing aims to
improve public health and environmental quality and
make as a resource" (UU RI No 18, 2008). Making
resources here means that waste can be used as a
renewable power source for Indonesia.
There are 2 types of waste that is Organic Waste
which consists of materials composing plants and
animals taken from nature or produced from
agricultural activities, fisheries or others. Inorganic
waste originates from non-renewable natural
resources such as minerals and petroleum, or from
industrial processes. Judging from the composition of
waste in major cities of Indonesia, organic waste
reached 70% of the total of all waste, while inorganic
28% and the rest of B3 waste (Hazardous Materials
Toxic) of 2% (Safrizal, 2014).
Geographical Location of TPA (Final Disposal
Site) Namo Bintang, Pancur Batu Subdistrict, Deli
Serdang Regency which has 16 Ha of land area. As
shown in Figure 1.
Figure 1. Geographic Map of TPA Terjun, Marelan
With the condition of garbage in TPA plunge can be
seen in Figure 2.
Figure 2. Waste Condition at Landfill Terjun
2.2 Garbage Power Plant (PLTSa)
Electricity is an energy that is needed by society to
live everyday life. Currently, the existing municipal
waste in the TPA Terjun can be a source of energy if
it can be managed and built Garbage Power
Generation (PLTSa).
Renewable energy sources are energy sources
that do not cause a variety of environmental problems
such as environmental pollution and global warming
(Indoenergi.com,2014). The working principle of
PLTSa is shown in Figure 3.
Figure 3. PLTSa Working Principles
2.3 Economic Accounting
a. NPV (Net Present Value)
NPV is the current value of the entire Dicounted
Cash Flow or the total cost picture or total
project revenue seen with the present value (the
value at the start of the project). Mathematically
the NPV value can be expressed as Equation 1.
(1)
where :k = Discount rate used, COF= Cash out
flow / Investment, CIFt= Cash in flow in period
t, N = The last period of cash flow expected
b. IRR (Internal Rate Of Return)
IRR is the level of profit used to pay the amount
borrowed in order to achieve a balance toward
zero with the consideration of profit. IRR is
shown in% / period and is usually positive (I>
0). To calculate the IRR can use Equation 2.
(2)
where : IRR = Internal Rate of Return (%),
NPV
1
= Net Present Value with low interest rate
ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramification Researches
318
(Rp), NPV
2
= Net Present Value with high
interest rate (Rp), i
1
= First Interest Rate (%), i
2
= Second Level of Interest (%)
c. BCR (Benefit Cost Ratio)
Benefit Cost Ratio is the ratio of the ratio
between total revenue over the time of the
generator operation with the initial investment
cost. Formulated in Equation 3.
(3)
d. PP (Payback Period)
Payback Period is the length of time it takes to
recover the investment fund. Formulated in
Equation 4
(4)
2.4 Experimental Setup
The location of the research was conducted at TPA
Terjun, Kec.Medan Marelan and in Sanitation
Department of Medan City. It is hoped that with this
research the achievement of PLTSa development and
provide investment opportunity and make PLTSa
become BUMD Medan City. The time for data
collection starts from May 2016 to June 2016. It
begins by searching the garbage data at the Sanitation
Office of Medan City, then looking at the location of
the TPA Terjun landfill, followed by processing the
data and summarizing the research results.
The materials used in this study are the data
collected from TPA Terjun, Sanitation Department of
Medan City and research on the journal that has been
done. For the equipment used is the Laptop by using
Microsoft Excel Software. While the method used is
the method of data collection and processing.
Considering the absence of Waste Power Generation
(PLTSa) in Medan City, one of the results of research
on waste becomes a reference entitled "Analysis of
Waste Business Feasibility to Waste Power Plant
(PLTSa) in Bogor City" which is attached on
appendix sheet (Siti, 2009). Since the data in this
reference is used in 2009 with the effect of the
Indonesian economy because inflation averages 5%
each year then each data from this study multiplied
35% to obtain economic value in 2016.
a. TPA Terjun
By conducting a personal interview on the
head of UPP TPA Terjun cpc. Sutikno then
found that TPA Terjun which has a landfill
area of 14 hectares with a population of
2,125,591 people and population density
of 7,929.5 km
2
can produce garbage up to
7274 m
3
/day equivalent to 1818 tons/day.
b. Sanitation Office of Medan City
Data collection at Sanitation Department of
Medan City to get the cost of retribution and
garbage transportation cost in Medan City
and in Table 1 is the data obtained.
Table 1. Garbage Retribution Medan City
Table 1 shows comparison of target city waste levy
target value with the realization of garbage levy
which has been running for the last 5 years.
2.5 Flow Chart
The sequence of this research procedure is
represented in the flow diagram in Figure 4.
Year Target Realization
Retribution Retribution
(Rupiahs) (Rupiahs)
2011 27.000.000.000 16.152.471.550
2012 31.000.000.000 12.768.304.000
2013 21.300.000.000 18.134.728.282
2014 25.000.000.000 20.256.904.605
2015 27.500.000.000 20.534.958.850
Planning of Garbage Power Plant (PLTSA): Case in Medan City
319
Figure 4. Flow Diagram of Research
3 RESULT
3.1 Estimated Production Type
Incenerator
The burning of the organic waste which has been
left to reduce the water content contained in the
garbage to the moisture content of the garbage is
only 50-60%, then burning with early fire
triggers using kerosene and produce heat
temperature above 850°C in the furnace burning
and has a calorific value of 15500 kcal/ton
(Ikhsan, 2014).
3.2 Estimated Power Production
Based on the results of the research from the Medan
Landfill will continue to increase every year, as
shown in Table 2.
Table 2. Potential of Garbage in Medan City
Year Weight of
Trash Organic Inorganic
(Ton/day) (Ton/day) (Ton/day)
2010 1718 1202,6 515,4
2011 1735 1214,5 520,5
2012 1752 1226,4 525,6
2013 1768 1237,6 530,4
2014 1785 1249,5 535,5
2015 1807 1264,9 542,1
2016 1818 1272,6 545,4
2017 1835 1284,5 550,5
2018 1852 1296,4 555,6
2019 1868 1307,6 560,4
2020 1885 1319,5 565,5
2021 1902 1331,4 570,6
2022 1919 1343,3 575,7
2023 1935 1354,5 580,5
2024 1952 1366,4 585,6
2025 1969 1378,3 590,7
Table 2 shows in 2016 TPA Terjun accommodates
1818 tons of waste / day with specific inorganic waste
of 545.4 tons / day and organic waste of 1272.6 tons
/ day. Based on TPA data from EBTKE (New
Renewable Energy and Energy Conversion) that
potential is calculated with the provision of 1 ton of
waste / day equivalent to 18 kW it can be concluded
that 1272.4 ton / day x 18 kW = 22.903.2 kW or 22.90
MW. While the electric energy generated in a year is
22,903.2 kW x 8760 hours / year = 200.637.032 kWh
/ year. So that the electric power generated from the
Waste Power Plant (PLTSa) in Medan City with 20%
efficiency assumption is 20% x 22,903.2 kW x 8,760
hours / year = 40.126.406,4 kWh / year.
3.3 Economic Analysis
a. Investment Cost
To obtain capital in the development of PLTSa in
Medan city, it is necessary to detail the investment
cost, where the investment cost incurred at the
beginning of project age as a whole is shown in
Table 3.
ICOSTEERR 2018 - International Conference of Science, Technology, Engineering, Environmental and Ramification Researches
320
Table 3. Total Investment Cost of PLTSa in Medan
City
No Description Total
Investment
(Rupiah)
1 Investment Cost of
Machine and Operating
S
y
ste
m
44.093.700.000
2 Building Investment
Cos
t
19.825.699.050
3 Pre-Investment Fee 4.050.000.000
4 Re-Investment Cos
t
2.299.568.950
TOTAL
INVESTMENTS
70.268.968.000
The total investment required is Rp
70,268,968,000,- with the biggest cost being the
investment cost of machinery and information
system
.
b. Maintenance and Operational Cost
Operational costs are the overall costs associated
with the operations (production) of the PLTSa
business unit in Table 4.
For total maintenance and operational costs of Rp
19,641,972,585, -from the three parts to be
calculated are fixed costs for labor, variable costs,
office and vehicle factory overhead costs. The
biggest cost is the variable cost.
Table 4. Total Cost of Maintenance and Operational
PLTSa in Medan City.
c Electricity sales
The value of electricity sales is obtained from the
volume of electricity production multiplied by the
selling price of electricity. Determination of
electricity price based on the basic tariff price set
by PLN. The production of electricity in PLTSa
Medan City 2016 is 1272,4 ton/day x 18 kW =
22,903,2 kW or 22,90 MW. Assuming 20% power
generation efficiency, 20% x 22,903.2 kW =
4,580,64 kW and 8760 hours/year x 4580,64 Kw
= 40,126,406,4 kWh/year. Then the energy that
can be sold to PLN from burning organic waste is
1,272.6 tons/day (464,499 tons/year) is
40,126,406,4 kWh/year.
PLN purchases electricity from PLTSa
according to the Ministerial Regulation No.19 of
2013 has been fixed (zero waste: Rp 1,450 - 1798
/kWh; sanitary landfill: Rp1.250 - 1.598 /kWh;
incenerator Rp/kWh 1.450 medium voltage).
Acceptance of the cost of electricity sales PLTSa
production of Medan city in 2016 is Rp 1.450 x
40.126.406,4 kWh/year = Rp 58.183.289.280.
3.4 Assessing Eligibility
With Discount Factor (DF) required to view the
projected value of money for a certain period during
the project, if the interest rate is determined at 15%,
DF can be calculated by Equation 5.
DF = 1/(1+i)
n
(5)
Where i = discount rate, n= Year Period, DF=
Discount Factor
Obtained present value operational and
maintenance and present value of total income each
during the project lasted 25 years is Rp
126.968.639.118 and Rp 376.105.456.177.
3.5 Investment Rating
To analyze the feasibility of a project it is necessary
to evaluate the project investment by calculating
NPV, IRR, BCR, and PP which can be seen in the
following description (Ikhsan, 2014):
a. NPV (Net PresentValue)
After calculation using Equation 1 then the value
of NPV obtained is Rp 249.136.817.059. After
deducting the revenue from electricity sales with
operational expenses, the NPV value is Rp
249,136,817,059, - or greater than zero, so the
project can be considered feasible.
b. IRR (Internal Rate of Return)
After calculation using Equation 2 then the value
of IRR obtained is 54.6%. Because the value of
IRR obtained is 54.6% or greater than 0%, in
No Description Total
Investment
(Rupiah)
1 Fixed Costs for Labo
r
6.624.180.000
2 Variable Cos
t
10.614.837.600
3 Factory Overhead,
Office and Vehicle
Expenses
2.402.954.985
Total Cost of
Maintenance and
Operational
19.641.972.585
Planning of Garbage Power Plant (PLTSA): Case in Medan City
321
accordance with the terms of project feasibility on
IRR that must be positive (I> 0) then the project
is said feasible.
c. BCR (Benefit Cost Ratio)
After calculation using Equation 3 then the value
of BCR obtained is 13,71. Because the value of
BCR obtained is 13.71 or more than zero, the
project is considered feasible.
d. PP (Payback Period)
After the calculation using Equation 4 then the
value of PP obtained is 1.8 or (1 Year 9 months).
Because the value of PP obtained for 1.8 years,
with payback time for 1 year 9 months. The quick
payback period makes investors interested in this
project.
4 CONCLUSIONS
The amount of electric potential generated by using
incenerator type in PLTSa business unit of Medan
city with garbage capacity of 1272,2 ton / day can
generate electricity equal to 40.126.406,4 kWh and
electric power equal to 22,90 MW with sales Rp
1,450 for type incenerator with medium voltage.
Of the generated power of 22.90 MW it can
provide input to the government in overcoming the
electricity crisis in North Sumatra, especially Medan
City.
Using the least cost method of NPV calculation is
Rp 249.136.817.059 which means the project is
profitable in accordance with the eligibility criteria of
the NPV> 0 project and the payback period also
exceeds the economic time of a power plant. Profit
ratio between cost shown by BCR is positive number
that is 13,71 and the payback period shown in PP is
for 1 year 9 months and the last is IRR obtained equal
to 54,6%. Therefore, based on the feasibility study,
PLTSa development project in TPA Terjun Medan
can be realized because it meets the criteria of
feasibility study.
Economic feasibility PLTSa in the city of Medan
has been tested feasibility, this will provide an
opportunity for investment opportunities for energy
and electricity development in the city of Medan.
REFERENCES
Safrizal. “Distributed Generation Pembangkit Listrik
Tenaga Sampah (PLTSa) type incenerator solusi
listrik alternatif kota Medan”, Jepara : Unisnu, 2014
Undang-Undang Republik Indonesia Nomor 18 Tahun
2008 Tentang Pengolahan Sampah
Siti Ade Fatimah, 2009 “Analisis kelayakan usaha
pengolahan sampah menjadi pembangkit listrik
tenaga sampah (PLTSa) di kota Bogor” Skripsi
Program Sarjana Ekstensi Manajemen Agribisnis
Fakultas Pertanian Institut Pertanian Bogor
Ikhsan, Rachmad. “Study kelayakan pembangunan
Pembangkit Litsrik Tenaga Sampah (PLTSa) di TPA
kota Banda Aceh”, Banda Aceh : Unsyiah, 2014
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