Draft Feasibility Study of Saparua

Gas Engine Power Plant (5 MW)

EXECUTIVE SUMMARY
To meet the electricity needs in Maluku, PLN plans to build GEPP plants in several regions of
Maluku, one of which is the Saparua Gas Engine Power Plant with a capacity (5 MW).
The power plant location is open terrain, land elevation is relatively. Type of soil based on
visual observation is laterite, water source can be taken from sea near location. Location of power
plant is the location of former for housing development. Partly at this location land clearing has
been done. Landowners in this location is the private company and individual. The wide availability
of land for the new power plant is 5.0 hectares.
It’s possible to build a jetty near location which can be used for loading/unloading material during
construction phase, or to support power plant operation in the future.
The Saparua Power Plant will be built gas engine dual fuel type. The Saparua Gas Engine Power
Plant will be designed for dual fuel with 5 MW of capacity where the bio fuel (B30) as pilot fuel.
Natural gas will be provided in LNG package system by other parties.
LNG source in Indonesia is very sufficient to supply fuel for power plants in Saparua. LNG source
in Indonesia that divided into 6 region. Nearest gas supply for Saparua power plant will be
Bontang, Donggi- Senoro and Tangguh. If CNG will be used as gas fuel, Surabaya and Makasar
are location for CNG supply.
General specification of the gas engine:
• Type : Lean burn gas engine with sparkplug Ignited or dual fuel system;
• Maximum Speed : 750 rpm (50 Hz);
• Cooling System : Water jacket cooled by the radiator;
• Starting system : Compressed air starting;
• Fuel : Natural gas;
• Lubricating : Forced lubricating system, lube oil engine-driven pumps.
The EPC cost for the Plant takes the biggest portion of the EPC. Cost estimate of the EPC work
of the Project consists of three cost components: mechanical work & electrical works, instrument
& control cost, civil cost and others. Civil works cost must be estimated by using cost analysis and
bill of quantity method. Site preparation cost will be varied for each location depending on existing
site condition, which will be charge to investment cost.
For mechanical and electrical equipment, the EPC cost has been estimated by manufacture’s
quotation or historical data of similar equipment and projects with scale factor adjustment and
escalation method, as well as market price survey to manufacturers and suppliers.
EPC Cost Estimation
EPC COST
ITEM
(US $) PERCENTAGE
MECHANICAL WORKS 5,250,875 59.50%
ELECTRICAL WORKS 1,720,875 19.50%

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Draft Feasibility Study of Saparua
Gas Engine Power Plant (5 MW)

EPC COST
ITEM
(US $) PERCENTAGE
INSTRUMENTATION AND CONTROL 485,375 5.50%
CIVIL WORK 1,235,500 14%
OTHERS 132,375 2%
TOTAL 8,825,000 100.00%

Based on calculations done at rate of USD 0,1010/kWh using several alternative fuels and
scenario investment 70% debt and 30% equity, the following results are obtained:
Financial Result
Scenario 1 Scenario 2
Description Tarif BPP
Cent USD Cent USD
Internal Rate of Return (%) - - -
Net Present Value (US$) (19.695.351) (28.711.707) (6.434.297)
Benefit Cost ratio (3,89) (1,87) (13,42)%
Pay Back Period >20 years >20 years >20 years
Notes: *) The Net Present Value is
negative

Saparua GEPP 5 MW system can replace Diesel Power Plant with the same capacity. If the
Saparua GEPP 5 MW can be implemented and replace the Diesel Power Plant, then the IRR =
83.48%, NPV = 7,028,576 US $.

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Draft Feasibility Study of Saparua
Gas Engine Power Plant (5 MW)

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