Techno-economic feasibility analysis of Jatiluhur Reservoir floating solar photovoltaic 100 MW project in Indonesia utilising RETScreen to achieve NZE target by 2060

Floating Solar Photovoltaic systems have emerged as an important contributor to the energy transition in developing countries, but techno-economic analysis usually fails to consider the policy integration, investment risks, and environmental externalities. In this study, the RETScreen method is employed for the policy integration analysis of the 100 MW FSPV system at the Jatiluhur Reservoir, Indonesia. The initial investment cost for the project is USD 79.8 million, which generates 160,358 MWh annually, reducing 149,133 tCO2 annually. At the base case, the tariff is USD 0.0528/kWh, which results in an NPV of USD 5.45 million, IRR of 9.9%, payback period of 8.2 years, and LCOE of USD 0.051/kWh. However, after considering the policy incentives, the NPV increases to USD 243.13 million, IRR increases to 20.1%, the payback period reduces to 2.2 years, and the LCOE reduces to USD 0.047/kWh. Moreover, the Monte Carlo simulation results show that the NPV increases up to 100% probability for the policy integration analysis. Therefore, the study contributes to the techno-economic analysis of the reservoir-based floating solar photovoltaic system in the context of emerging economies.