The ambitious mega project 35 GW of power generation by Indonesian government is targeted to be completed by 2019. This mega project was planned to meet the growth of electricity demand aligned with the government ambitious goal of achieving of seven (7) percent annual economic growth. Notwithstanding the fact, the electricity demand growth has currently declined due to the weakening economic growth, which only achieves of five (5) percent by the year of 2016 and 2017. Furthermore, the development is mostly focused to build power plant as a base-load, no concern yet on developing power plant as peaking load or load-follower due to economic reasons. Therefore, at current development rate, for Java-Bali region currently has the electricity supply up to 30,000 MW, leaving a surplus of power about 8,000 MW.
With the development of several new power generations that use the latest technology along with a more efficient and reliable performance, the existing power generations will no be longer competitive in the market. As PLN subsidiary, PJB has several power generations that are in wear-out period and non-competitive, for instances 2x100 MW and 2x200 MW Thermal Power Plant in Gresik, 2x200 MW Thermal Power Plant in Muara Karang and 1x200 MW Gas Combine Cycle Power Plant in Muara Tawar. Some of those power generations are now critically in the idle state of reserve shutdown for some economic reasons until demand for electricity rises.
Therefore, in order to optimize the utilization of those power generations, the study has been conducted through two (2) possible solutions, specifically repowering, and relocation. This paper presents a comprehensive analysis of three solutions by focusing the case study on Thermal Power Plant in Muara Karang by conducting decision criteria and model throughout technical and financial assessment.