Financial and Economic Feasibility of Developing an Eco-Edu-Park Based on Renewable Energy from RDF Plant Cilacap, Central Java, Indonesia
Abstract
The development of an Eco-Edu-Park integrated with Refuse-Derived Fuel (RDF) technology offers an innovative solution for waste management, renewable energy production, and regional economic development. This study evaluates the financial and economic feasibility of an RDF-based Eco-Edu-Park in Cilacap Regency using Cost-Benefit Analysis (CBA) and Extended Cost-Benefit Analysis (ECBA). Financial feasibility was assessed using the Net Present Value (NPV), Net BenefitCost Ratio (Net B/C), Internal Rate of Return (IRR), and Payback Period (PP), whereas the economic analysis incorporated the Carbon Economic Value (CEV) from greenhouse gas emission reductions. Financially, the project was feasible, with an NPV of IDR 5.18 billion, net benefit-cost (B/C) of 2.36, IRR of 20.58%, and payback period of 3 years and 11 months. However, the economic analysis indicated a negative NPV of IDR 1.87 billion, a Net B/C of 0.51, and an IRR of 1.66%, despite reducing methane emissions by 24,582 tCO₂e annually. The analysis assumes stable operations, waste supply, and carbon values. A key limitation of this study is its reliance on projected data from a single case study. These findings can support policymakers in developing financing mechanisms, institutional support, and regulations to improve the long-term sustainability of RDF-based Eco-Edu-Park projects.
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