Benefits and Costs Analysis of Micro Hydro Electric Power Generation of Enim Watershed Tanjung Tiga for Sustainable Development

Abstract

The electricity demand of the population in Indonesia continues to increase over time, in line with the population growth. Currently, Indonesia highly demands on electrical energy which is mainly derived from fossil resources, while the availability of fossil endowment declines continuously. In 2009, the electricity demand in Indonesia exceeded the electricity supply, so the deficit is 15.22%. It is necessary to find alternative energy sources to meet the demand. Water is one of the alternative resources. If it is discerned from the potential of existing water resources, the availability of water resources in Indonesia is relatively abundant in the area, both located in upper and in the coastal watershed of cities. Mostly those located in the upper watersheds are not easily rechargeable by the electrical energy supported by State Electricity Company. Electrical energy can be supplied from the existing water resources in the watershed by using technology. Existing technology is used to build a source of electrical energy through micro hydro electric power generation that converts the water flow energy into electrical energy. Tanjung Tiga village is a village in the sub district of Semende Darat Ulu, Muara Enim Regency, South Sumatra Province, Indonesia. This village is one of the villages in Indonesia that has not been affordable electricity from the State Electricity Company. The flowing of Enim river is a part of Musi sub wathershed. In the past, people used kerosene of fossil for lighting. In 2003, people consumed electricity for television, computer other devices that used electrical energy. The villagers of Tanjung Tiga currently consume energy in the sources derived from micro hydro electric power generation, with a power of 200 watts per house. The economic value of water used for micro hidro electric power needs to be calculated, so that people understand how important protecting water resources to maintain sustainability with its economic value. Calculation of economic value is done in an effort to increase investment in the protection of natural water resources and as a basis for a policy. The policy can be used as the basis for ecological or environmental service payments on water resources and to optimally manage environmental condition. This paper aim to desk assess the value of micro hydro electric power generation respect to utilizing for a living in the areas. The paper encountered several questions: (i) How much the benefit and cost of water taken if the water used for electrical energy through micro hydro electric power generation, (ii) How long the micro hydro electric power generation can still be used to electricity demand of communities of Tanjung Tiga so that water resources in the village is still able to meet the demands of communities in the future. It is necessary to re-count on economic valuation of available water resources in Tanjung Tiga by using benefits and costs analyses. The results can cover the duration of micro hydro electric power and when it maintained properly, the people would use it longer.

Keywords: electricity demands, electricity supply, the village of Tanjung Tiga, micro hydro electric power generation, benefits and costs analysis