Carbon reduction and social cost–benefit analysis of shore-side electricity application in sustainable green port development

Purpose Port activities from ship engines cause increased air emissions and decreased air quality in the port area and other affected areas around the port. Efforts are needed to achieve green port status, one of which is by implementing shore-side electricity (SSE) system technology, acting as a substitute for auxiliary as a supplier of electrical power to ships when ships are docked. This study aims to see the potential and challenges of implementing SSE in developing country ports. Design/methodology/approach The study began by designing SSE on a case study at one of the container ports in Indonesia. The social cost–benefit analysis (SCBA) method was carried out to compare the techno-economic side with the carbon reduction benefits obtained in the implementation of SSE by implementing schemes from various scenarios that might be faced. Findings From the case study, the implementation of SSE produced approximately 3,380 tonsC in 2022 or around 5.2 tonsC/ship. From the calculation of the cost analysis, the investment costs required by the port to build the system are quite high, subsidies are needed for special construction and operations, such as the cost of purchasing electricity from the state electricity authority. In addition, the power plant’s reliance on coal actually has a negative impact on increasing CO2 emissions by 3% globally, even though it can eliminate all other emission inventories at the port locally. Originality/value The contribution of this study is to provide an overview of the opportunities for implementing shore-side electricity at the port. It is hoped that this study will be an encouragement or appeal to policymakers and port operators to support the mission of the commitment to reducing maritime emissions as well as being the basis for the potential birth of new regulations and standards for implementing greenport. In addition, more specifically, this study gets an overview of the opportunities and challenges faced by Indonesia in efforts to implement shore-side electricity.