Feasibility and sensitivity assessment of various heads for micro-hydropower plant design in the Deluwang watershed, Indonesia

The escalating global demand for electrical energy, including in Indonesia, underscores the need for renewable energy sources like micro-hydropower plants (MHPs). This study examines the financial feasibility and sensitivity of MHP projects in the Deluwang watershed, Situbondo Regency, Indonesia. Three cases with varying head elevations and discharge rates were analyzed, utilizing crossflow turbines. Case 1, with the highest head and discharge, emerged as the most profitable, demonstrating the highest values for Net Present Value (NPV), Benefit–Cost Ratio (BCR), and Internal Rate of Return (IRR). The study found that on-grid systems, despite higher initial costs, offer more stable revenue and faster payback periods compared to off-grid systems. Sensitivity analysis revealed the on-grid method's resilience to fluctuations in interest rates, project lifespan, and river discharge, maintaining feasibility with up to an 80% reduction in discharge over 15 years. This highlights the importance of strategic planning in MHP design, considering head and discharge rates to optimize power generation. The findings provide valuable insights for renewable energy development, contributing to Indonesia's energy needs and local socio-economic benefits. Future research should further explore the socio-economic impacts of MHP installations to enhance their development and sustainability.