QUANTIFIYING SOSIAL COSTS OF TENAYAN RAYA COAL-FIRED POWER PLANT Andewi Rokhmawati1*), Yulia Efni1, Rendra Wasnury1, and Agus Sugiyono2
1) The Faculty of Economics and Business Universitas Riau
2) Energy Resource Development Technology Center, Agency for the Assessment and Application of Technology
Abstract
Various studies show that coal still dominates the electricity supply in Indonesia for long-term power generation from fossil energy. The coal-fired domination is because the primary consideration in selecting generators is based on the low production costs. This cost makes the coal-fired generation seems cheaper than the electricity generation from renewable energies. The less expensive cost perceived of the generation costs is due to ignoring the social costs. At the same time, studies conducted to quantify the social costs produced from generation costs have been limited. Using QUERI-AirPacts Modeling, this study quantifies the social costs resulting from the Tenayan Raya coal-fired generation. The research result shows that there is an extra cost of USD15.98/MWh or USD0.01598/kWh of social cost that is not included in the generating cost. At a level of 1,301,821.96 MWh per year, there is expected an extra cost that has not been included in the electricity generating cost at USD2,0803,114.92. This result implies that the government should consider the source of funds to finance that cost and who will pay that cost.
Keywords: fossil-fired generation- social costs- AirPact model- Levelized cost of electricity
