A pumped storage hydroelectric generation (PSHG) has been studied as alternative peak power source of the oil-fired power generation in Indonesia. However, because there is no surplus base load electricity even in the night, the economic advantage can not be found. The possibility of solar thermal power generation (STPG) is investigated to restrain the increase of fuel consumption by the existing peak power source. The optimum system simulation and the analysis of economy and environmental impact by a multiobjective optimization method provide the following results. The optimum aperture area and thermal storage capacity of STPG are found by the simulation based on the climate and the solar condition in West Java. PSHG with STPG as the power source of storage pump shows lower generation cost and CO
2 emission than PSHG with existing oil fired peak power sources. Even if the fuel switch from oil to gas is supposed in future, PSHG with STPG will achieve the lower generation cost and CO
2 emission than PSHG with the oil/gas fired combined cycle by sharing the peak electricity supply with the oil/gas fired combined cycle in an appropriate ratio. Furthermore, if the crude oil price hike in future is considered, PSHG with STPG may be the optimal solution for the peak electricity supply of Java-Bari grid.
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