Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)

Business Performance and Sustainability of On-Grid Mini Hydro Power Plants in Indonesia

Authors
Hari Yuwono, Margono Setiawan, Candra Fajri, Ananda Sudjatno
Corresponding Author
Hari Yuwono
Available Online 13 April 2020.
DOI
https://doi.org/10.2991/aebmr.k.200410.016How to use a DOI?
Keywords
business performance, sustainability, mini hydro, renewable energy, stakeholder theory, resource-based theory
Abstract

This paper analyses the business sustainability of on-grid mini hydropower plants. It helps to improve the implementation effectiveness of renewable energy in Indonesia. The sustainable business of on-grid mini hydropower plants is a key for increasing renewable portion and emission reduction. Twelve mini hydro installations with more than one-year operational record were studied. Panel data from 27 respondents were collected in 2018 and analysed qualitatively using stakeholder theory and resource-based theory. The on-grid mini hydropower plants were built and operated at certain cost and the revenue is derived from the sales of electricity. The feed-in-tariff determined by the government policy and each mini hydropower plant has different competitive advantage. Although five mini hydropower plants agreed on the business sustainability throughout the power purchase agreement, only one of them has met the profit expectation. Cost overrun in construction, less profitability and cash flow issue are problems identified in the mini hydropower plants business.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
13 April 2020
ISBN
978-94-6252-954-0
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200410.016How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Hari Yuwono
AU  - Margono Setiawan
AU  - Candra Fajri
AU  - Ananda Sudjatno
PY  - 2020
DA  - 2020/04/13
TI  - Business Performance and Sustainability of On-Grid Mini Hydro Power Plants in Indonesia
BT  - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
PB  - Atlantis Press
SP  - 102
EP  - 108
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200410.016
DO  - https://doi.org/10.2991/aebmr.k.200410.016
ID  - Yuwono2020
ER  -