Continuum-Discrete Models for Supply Chains and Networks

Reviewing the potential and cost-effectiveness of grid-connected solar PV in Indonesia on a provincial level

“…Compared with the subsidized residential electricity tariff of 0.08 $/kWh 3 (0.09 $/kWh for industry) [9,12], grid-connected PV ain't yet cost-effective in any province. However, the real generation cost of PLN is on average 0.12 $/kWh and ranging from 0.07 to 0.17 $/kWh [10].…”

“…The electricity price in Indonesia is heavily subsidized, for instance the government allocated an amount of 5.1 billion US dollar for electricity subsidies for the year 2012 [8] leading to a reduction of consumer price of electricity, which is significant lower compared with other Southeast Asian countries [5]. Especially on remote islands outside the main islands Java and Bali expensive diesel is used to generate electricity in a relatively inefficient way [2], which adds to the subsidy burden of the government, taking badly needed resources away from improving infrastructure [9]. For instance at the province East Nusa Tenggara the actual electricity production costs are about 15 $ct/kWh whereas the average price sold is less than 8 $ct/kWh [10].…”