Loso Judijanto, Arlinta Prasetian Dewi, Mohammad Gifari Sono

Economic Feasibility Analysis of Integrated Energy Implementation in Industrial Areas in Indonesia

Introduction

Economic feasibility analysis of integrated energy implementation in industrial areas in indonesia. Study economic feasibility of integrated energy in Indonesia's industrial areas. Finds high investment & long payback are barriers despite energy savings. Recommends cost reduction & better incentives.

Abstract

This study analyzes the economic feasibility of implementing integrated energy systems in industrial areas in Indonesia. Using a quantitative approach, data was collected from 35 industrial areas through a Likert scale survey, and analyzed using SPSS version 26. The analysis focused on key variables such as investment costs, energy savings, payback period, government support, technical feasibility, and energy efficiency. The results revealed that while energy savings and government support were perceived as key benefits, high investment costs and long payback periods posed significant barriers to adoption. Additionally, the findings highlighted a strong correlation between technical feasibility and energy savings, underscoring the importance of infrastructure compatibility. The study suggests that reducing investment costs, improving access to capital, and enhancing government incentives are essential to promoting the adoption of integrated energy systems in Indonesia’s industrial sectors.

Review

This study provides a timely and relevant analysis of the economic feasibility of integrated energy system implementation within industrial areas across Indonesia. Employing a quantitative approach, the research effectively gathers perception data from 35 industrial areas using a Likert scale survey, subsequently analyzed with SPSS. The findings highlight a critical dichotomy: while energy savings and government support are recognized benefits, high investment costs and extended payback periods emerge as substantial barriers. Furthermore, the study importantly identifies a strong correlation between technical feasibility and the potential for energy savings, underscoring the foundational role of infrastructure compatibility. The authors conclude with practical recommendations, emphasizing the need for reduced investment costs, improved access to capital, and enhanced government incentives to accelerate adoption. A key strength of this research lies in its direct engagement with industrial stakeholders to gauge perceptions regarding integrated energy systems. The identification of both perceived advantages and significant adoption hurdles provides valuable insights for policymakers and industry leaders alike. The specific finding regarding the strong link between technical feasibility and energy savings is particularly insightful, suggesting that efforts must not only focus on financial aspects but also on ensuring the technical readiness and compatibility of existing industrial infrastructure. The recommendations, aimed at mitigating financial barriers and boosting government support, are well-aligned with the study's findings and offer actionable pathways for fostering sustainable energy transitions in Indonesia's industrial sector. While the study offers valuable insights, a potential limitation lies in its reliance on Likert scale perceptions for complex economic variables such as "investment costs" and "payback periods." While useful for gauging perceptions, a more rigorous economic feasibility analysis might benefit from detailed financial modeling (e.g., Net Present Value, Internal Rate of Return calculations) based on actual cost and revenue projections for various integrated energy scenarios. Future research could expand upon this by conducting in-depth case studies of successful and unsuccessful implementations, exploring the specific types and efficacy of government incentives, or differentiating feasibility across various industrial sub-sectors. Additionally, incorporating qualitative data could provide a richer understanding of the underlying reasons behind the observed perceptions and correlations.

Full Text

Comments

You need to be logged in to post a comment.