Technical Note - Estimating Electricity Tariffs for a Utility-Scale Solar Power Plant

Introduction This technical note examines the financial considerations from the perspectives of both the solar power plant (SPP) developer and the state-owned electricity company (PLN) for a planned 50 MWp SPP project in the Future Capital City (IKN). It explores the key factors, such as investment, operational, and maintenance costs, as well as the target return on investment for the SPP developer, that will determine the electricity tariff or price per kilowatt-hour (kWh) charged to PLN. Conversely, it also considers PLN's decision-making process, which involves evaluating the cost of alternative electricity generation sources, the target selling price to end consumers, and government policies and subsidies, to determine the electricity tariff they are willing to pay. By understanding this nuanced interplay between the financial interests of the SPP developer and PLN, policymakers and industry stakeholders can gain valuable insights to facilitate the successful implementation of this renewable energy project. Methodology The methodology described in this technical note is based on the conceptual framework outlined in the note "Algorithm for Compiling and Aggregating Responses from Multiple AI Platforms" (Yogisworo, 2025).