Power generation and transmission system analysis by using cooperative game theory (case study: Electricity in Kalimantan)

Electricity is a part of national infrastructure that indeed has a role in developing economy. Being economic driving force of a country, the electricity supply must be adequate in accommodating the demand. In fact, electricity supply in Indonesia is not adequate enough to meet the demand. According to RUPTL (long term corporate planning) of PLN (state-owned electricity company) for 2017-2026, the demand in Indonesia has not been satisfied especially in Kalimantan island. The statistic shows there exists 9,7% gap growth between electricity sales and generator capacity. Government has made some programs to overcome electricity problem and one of them is a 35.000 MW electricity development program. With the abundant potential primary energy, Kalimantan Island is considering to build thermal and hydro power plant with 275 kV or 500 kV transmission voltage systems. This research aims to develop a model to seek the lowest cost in power generation and transmission system among some alternatives. This model supposes be able to support PLN in making decision on which alternative to invest. Such model represents two alternatives of scenario namely regional balance and interconnectivity. Cooperative game theory is used to solve this problem since coordination (coalition) among players is important to reduce the costs. The result shows that the best alternative is area 1 and area 2 interconnectivity alternative. This alternative produces total cost of 123,5 trillion rupiahs. One way and two way sensitivity analysis are conducted to enrich the decision. The current decision will be shifted to regional balance alternative if the coal price is reduced 50% from its initial value or more.