Archive for the ‘Business Electricity’ Category

The Importance of Electricity in Support of Business

Another thing that is very detrimental to educate this nation to regard electricity as a cheap mass product that can be used arbitrarily. As a result, what? We become the nation’s wasteful of electrical energy, from the world of energy-intensive industries with the use of the means of production of low thermal efficiency up to the culture of home electricity use in households in Indonesia. If we look at households in developed countries that electricity tariffs are not distorted, we will not see the lights in the house of a brightly lit, unless people are really rich, when the residents had gone to bed or do not use it anymore. Differences with in Indone

Big Bend Power Station in Apollo Beach. Figure(1)

sia, let alone at night, sometimes in broad daylight, the bulb lights flashing on and sometimes it is not turned off.

Other issues in a vertically integrated system are:

* Consumers do not have a choice
* Economic inefficiency in the short term due to electric rates based on the average price of all power plants. Another case in the restructured electricity market, consumers get electricity tariffs based on marginal cost or price of electricity from power plants were sold last.
* Incentives are less powerful to reduce the price
* Heavy financial burden for the government (government subsidies for fuel PLN Rp 37.3 trillion in 2007)

As an illustration, the current price of electricity is basically the average price of production of the entire generator (known as the Cost of Production), from the cheapest, hydro plants to very expensive based fuel (fuel oil) such as plant oils, diesel , oil power plant. PLN’s BPP predictable result is more expensive than electricity prices in many other countries, as is often complained of by the consumer. For example RRP (regional retail price) of a region in Australia (the electricity market deregulation) ranged between $ 15 – $ 30/MWh or about Rp120 – Rp300/kWh. According to the news on the price of BPP web.bisnis.com PLN in Java-Bali region at this time in 2008 approximately Rp831 – Rp936 per kWh for low voltage, Rp745-Rp840 and Rp704 for medium voltage – Rp794 per kWh for high voltage.

The Domestic Electricity Market and The Challenge

Electricity pole near Mäntyluoto harbour.

Prior to a deregulated electricity market, the ownership and exploitation of electric power systems (STL) is done by a legal entity of a vertically integrated generation, transmission through controlled distribution in one hand. In this case, PLN is a business entity, which holds the power of the electricity business in Indonesia. Within this state there is a section that serves as a control center that regulates electrical power system energy management system (SME), in this case is P3B for Java, Madura, Bali system. SME is based SCADA (Supervisory Control and Data Acquisition) which have facilities planning and analysis functions of the operating system is aimed at optimizing the generation and distribution of electrical energy.

SME functions:

* Prediction of short-term load
* Set the unit commitment
* Dispatch (orders) the operation of power plants
* Controlling the reactive power
* Assess the condition of the system
* Controlling the power automatically
* Prevention and control of emergency safety

This control center also regulate power flow between the regions to enhance system security and back up. In addition to the control center, there is usually also the body that establishes the reliability and planning criteria for STL. But it has not been deregulated, again this criteria set by PLN itself.

The characteristics of typical STL is still dominated by the vertically integrated business:

* Monopoly (naturally occur due to a very large investment properties), but regulated by the Law
* Relying on the principle of “least cost” (least cost) for the planning and operation
* This fee covers the generation, transmission and distribution up to a connection point on the consumer
* Rates are determined or regulated electricity consists of the cost of production plus profit set by the government, but often the price distortion caused by political intervention.
* Rules electricity tariff rate of return is intended to ensure that manufacturers can cover all the costs of production

Examples of distorted tariff is the most obvious place in Indonesia, the New Order era, subsidized electricity rates are so great that people feel have electricity “cheap”. Even worse, some governments afterwards did not dare to raise electricity tariffs if before the election, although there are arguments rising rates will cause new costs, social costs of the turmoil in the community and certainly an unpopular incumbent. Cheap fare is actually false, because the state is actually the one who should pay the subsidies, which in fact is the people of this country financed from taxes. If countries are not burdened with subsidies for electricity, the existing budget can be used for other things, for example for education, small business development and so on.

Developments in the U.S. Electricity Business

there is a short article that reported “U.S. Grid Gets Less Reliable “. Wow, of course somewhat surprising, because during the American (U.S.) is the mecca of electric power system technology. To the extent that we often compare (benchmark) performance index “world class” with a performance index in North America (NERC). In that article. mentioned that the performance of power systems in the U.S. worsened in the last 15 years. Within a year, the average length of interruption (blackouts) reached 92 minutes in the area of ​​the Midwest and 214 minutes in the Northeast area. Comparison with Japan is on average only went out 4 minutes per year. Data EIA (Energy Information Administration U.S. Department of Energy) and NERC (North American Electric Reliability Corp..) Indicates that the disorder increases. If the period of 2000-2004 there are 156 outages greater than 100 MW, then in the period 2005-2009 increased to 264 disorders. Similarly to outages that affect more than 50,000 customers, if in the period 2000-2004 there are 149 disturbances, then the period 2005-2009 to 349 pieces.

Why did this happen? Since 1995, amortization and depreciation rate of infrastructure development spending has exceeded the system. In other words, in the last 15 years, the industry STL (utilities) more “harvesting” rather than “planting”. Consequently the STL became increasingly depressed. The cost of research and development (R & D) in the electricity sector fell 74%, from $ 741 million in 1993 to only $ 193 million in 2000. When compared with the revenue, cost of R & D is only 0.3% (for the period 1995-2000). Compare with other sectors of industry to another, eg the computer industry 12.8%, 10.4% of pharmaceutical industry and even the hotel also was more intensive R & D spend at 0.7% level. By investing in STL actual cost will be returned in the form of avoiding interference and increasing the efficiency improvements. So as has been mentioned in previous articles, it looks very clear trade-off between reliability vs. cost.

Should You Switch Your Business Electricity Provider?

The process of switching business electricity providers may be quite simpler than you might think. Once you know this, you can begin to take a closer look at how making this change might affect your business. The good news is that it costs nothing to receive a pricing estimate. Armed with this estimate, you can closely examine your options.

Price and quality of service are two things that must be considered when trying to make this decision. Obviously, you will likely not want to make a change unless savings are in store for you. It is also not advisable to change unless you can receive a level of service that is equal to, or greater than, the current level you are experiencing.

You may also wish to consider making the change to a company that is staying on top of the current changes in regard to environmental issues. Alternative energy sources may be quite important in the future, and you may want to select a progressive company that is aware of this fact.

Both current, as well as future business electricity prices should be taken into account when trying to make your decision. If you can lock in a low rate now, you may be guaranteed this rate for a period of one or more years. Locked in rates are an excellent way to gain control of your spending.

Prepare Rp 8.5 trillion, Japan Aims Solar Power Business in RI

Japanese investors Sharp is committed to investing to develop solar power plants in Indonesia. The funds will be prepared is U.S. $ 1 billion or about Rp 8.5 trillion.

This was stated by Minister Jero Wacik when found in Bali Nusa Dua Convention Center, Nusa Dua, Bali, Saturday (11/19/2011).

“They (Sharp) will explore where the exact location. DG I’ve been to Japan to see Sharp, there are examples of projects in Thailand covering an area of ​​160 ha fitted with solar panels. The result is power 73 MW (megawatts) at a price of U.S. $ 23 cents per kwh,” Jero clear.

He said the cost of solar electricity is much cheaper than electricity generated from fuel oil-fired power plants. “After the depreciation period is completed, its value to U.S. $ 3-5 cents per kwh,” he added.

“Indonesia has vast land and was granted exceptional solar abundance. If not utilized, we are mistaken,” Jero said.

Japanese investment is a new investment. Jero said Sharp had met with the boss.

“At first they were not sure we’re serious, but after meet our commitments clear. This collaboration is a logical and serious, so we will continue to pursue,”

Electrical and Business Opportunities

There is good news for those of you who want to open a business or seeking business opportunities with a capital of a mediocre, this business is perfect for you. Especially for those who verisimilitude in Greater Jakarta. Electrical business is a business that is right for cultivated. You just provide a place for the payment of electricity bills, you might already have a business.

All you do is visit the Business of Electricity and download from proposal right now, because the place is available only for first 500 registrants. Business payment of electricity bills can be a pretty good side income, especially if you live in densely populated areas but do not have a place of payment of electricity.

What are the benefits when joining?

You’ll get direct profit for Rp.500/transfusion and also the amount of administrative costs that you can specify your own discretion, but it is best not more than Rp.1500, – it aims to win the competition among the other competitors. Benefits you get from this business large enough, if in your area to have 1000 subscribers: the income Rp.2.000.000, – what you get.

The cost to open a business is very affordable at all, you will not be burdened with other costs just to buy equipment for transaction.So GPRS, do not miss this opportunity.