Long-Term Electricity Demand Forecast Using Multivariate Regression and End-Use Method A Study Case of Maluku-Papua Electricity System
Long-Term Electricity Demand Forecast Using Multivariate Regression and End-Use Method A Study Case of Maluku-Papua Electricity System
Edwin Nugraha Putra Rizki Firmansyah Setya Budi Candra Febri Nugraha
System Planning Division Department of Electrical and Department of Electrical and
PT PLN (Persero) Information Engineering Information Engineering
Jakarta, Indonesia Universitas Gadjah Mada Universitas Gadjah Mada
[email protected] Yogyakarta, Indonesia Yogyakarta, Indonesia
[email protected] [email protected]
Abstract— One of the most important stages in electric According to the national electricity portrait, Indonesia's
power system planning is load forecasting. An accurate demand electricity condition varies from one region to the next. This
forecast model is required to create the most optimal plan. picture is also supported by comparing the development in
Long-term demand forecasts are developed in this study using eastern Indonesia to that in Java. With its superior access to
regression and end-use models. Simulation is carried out to electricity compared to other areas, Java has emerged as a hub
determine the load demand of the Maluku-Papua system of economic activity. Meanwhile, the inability to mobilize
through 2050. The variables that have the greatest influence on investment in the productive sector in other regions, such as
demand forecasting, according to data analysis, are gross Maluku and Papua, is due to a lack of electricity supply.
regional domestic product (GRDP), population, electrification
ratio, and electricity price. The electricity demand in Maluku- One of the challenges in planning the Maluku-Papua
Papua is expected to rise by 5.7% in the business as usual (BaU) electricity system is the geographical nature of the
scenario and 6.7% in the High scenario. The peak load is archipelago and the uneven population distribution [6].
expected to increase by 5.6% in the BaU scenario and 6.5% in According to historical data, the electrification ratio in the
the High scenario. Furthermore, the results of the demand area was only 70.5% in 2020 [7]. Furthermore, the household
forecast can be used to determine policies and the planning of sector continues to dominate electricity demand in Maluku-
the electric power system. Papua, accounting for 65% of total electricity sales [7].
Keywords—electricity demand forecasting, multivariate Even though the electricity load is still low, demand in
regression, end-use method, Maluku-Papua Maluku-Papua experienced an average of 10.1% growth rate
from 2002 to 2019. In addition, according to the Indonesian
I. INTRODUCTION Ministry of Industry and the Coordinating Ministry for the
Electrical power is critical for improving people's well- Economy, there will be several potential large electricity
being and promoting economic growth. Electricity customers in Maluku and Papua. These potential customers
consumption per capita is a good indicator of a country's can be found in the Special Economic Zones (SEZ) and
electricity availability. Indonesia ranks sixth in the ASEAN Industrial Estates (IE) designated by the National Strategic
region, trailing Singapore (8,542 kWh/capita), Brunei (8,206 Project (PSN). To drive economic growth, it is necessary to
kWh/capita), Malaysia (5,097 kWh/capita), Thailand (2,485 provide an adequate electricity supply.
kWh/capita), and Vietnam (2,745 kWh/capita) [1], [2]. Load forecasting is an important part of the initial process
Meanwhile, in 2020, Indonesia's electricity consumption is of power system planning. Planning for additional capacity
expected to be around 1,039 kWh/capita [1]. As a result, of the electrical system is impossible without the data of
Indonesia must boost the growth of its electricity sector to electricity demand forecast. The accuracy of load forecasting
spur the economic growth. has an impact on electricity generation and transmission
The gross domestic product (GDP) and electricity planning. If the results are too high, there will be excess
consumption are inextricably linked. From 2009 to 2019, capacity and, as a result, excess investment. On the other
Indonesia's GDP increased by 5.3% per year on average [3]. hand, If the forecast is too low, rolling blackouts will occur,
On the other hand, electricity consumption per capita has causing customer dissatisfaction [8]. Consequently, selecting
increased at a similar rate [4], [5]. As a result, the government the appropriate method is critical to producing the most
has been attempting to accelerate the electrification ratio and accurate forecast possible.
equity in recent years through the State Electricity Enterprise There are several demand forecasting methods, including
(PLN). The provision of better electricity that reaches all of parametric methods, artificial intelligence, and end-use [8],
Indonesia is hoped to increase electricity consumption in the [9]. The parametric method is a forecasting method expressed
productive sector. As a result, the GDP will grow. in a mathematical model. It is based on the relationship
978-1-6654-1641-2/21/$31.00
Authorized licensed use limited to: ©2021 258on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
IEEE GADJAH MADA. Downloaded
UNIVERSITAS
between electricity demand and the factors that influence it.
The regression method is a subcategory of the parametric
method that is commonly used in electrical load forecasting 1,800
This study employs a multivariate regression method, TABLE I. SEZ AND IES IN MALUKU-PAPUA
which is widely used in many electric power companies
Province SEZ and IE
worldwide, in combination with the end-use method. It aims North Maluku SEZ of Morotai
to generate output that is more precise and closer to reality. IE of Buli
The Maluku-Papua system is being used as a test system for West Papua IE of Sorong
demand forecasting until 2050. This is the first study to IE of Bintuni Bay
conduct long-term demand forecasts in both regions to the The government of Indonesia through PSN policy aims to
best of the author's knowledge. promote growth and equitable development to improve
The following is how this paper is organized: The current people's well-being [17]. To achieve this, SEZs and IEs were
state of the Maluku-Papua electricity demand is described in established in several areas, some of which are located in
Section II. The concept of linear regression is discussed in eastern Indonesia. Maluku-planned Papua's SEZ and IEs are
Chapter III. The research methodology, including workflow, located in the provinces of North Maluku and West Papua, as
scenario, and data, is illustrated in Section IV. The forecasted shown in Table I.
demand results are presented in Section V. Finally Section VI
summarizes the conclusions and implications. III. DEMAND FORECAST: REGRESSION MODEL
Aside from representing the foundation for the electrical
II. MALUKU-PAPUA ELECTRICITY DEMAND system planning process, electricity demand forecasts are
Maluku-Papua is an area located in the eastern part of also used to prepare distribution planning, personnel
Indonesia. Maluku, North Maluku, Papua, and West Papua planning, financial projections, and other similar planning.
are the four provinces that make up its territory. Maluku has Regression is widely used for forecasting electricity demand.
the characteristics of a large number of islands. Papua, on the A simple linear regression model is depicted in (1).
other hand, is a large island in Indonesia's easternmost region.
= + + + ⋯+ + (1)
The industrial sector in Maluku-Papua is underdeveloped.
The gross regional domestic product (GRDP) in the region is
only 370,901 billion IDR. It is much lower than the GRDP in Alternatively, the regression equation can also be an
Java, which is 25 times larger [15]. It is also reflected in the exponential or polynomial model, as in (2) and (3).
location's electricity demand, as illustrated in Fig. 1. In 2019,
⋯ (2)
Maluku-energy Papua's sales were only 2,624 GWh, far less = . .
than other regions [16]. Historically, residential use = . . .… . . (3)
dominated electricity consumption as depicted in Fig. 2.
With,
Kalimantan
Sumatra
10.7 TWh : dependent variable
Sulawesi
36.7 TWh
10.8 TWh Maluku-Papua ,…, : independent variables
2.6 TWh
: constant (intercept)
,…, : regression coefficients
: error
Java
174 TWh
The variable to be searched is the dependent variable:
electrical energy consumption or energy sales. The
independent variables, on the other hand, are the factors that
Fig. 1 Electricity sales in Indonesia will influence the dependent variable. GDP, population,
electricity price, and other factors are among them.
259on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
Authorized licensed use limited to: UNIVERSITAS GADJAH MADA. Downloaded
IV. METHODOLOGY After that, the regression models that satisfy the statistical
tests are used to forecast the electricity sales by province.
A. Scenario Forecasted electricity sales are calculated for each demand
There are two forecasting scenarios in this study: Business sector, namely residential, commercial, public, and industrial,
as Usual (BaU) and High. These two scenarios were created and then added together to form the provincial demand. For
to represent various levels of economic growth. The BaU regular general customers, the electricity demand is
scenario assumes a low economic growth projection based on forecasted using a linear or non-linear multivariate regression
the 2020-2024 National Mid-Term Development Plan method, depending on the model obtained. Then, for the High
(RPJMN) [18]. Meanwhile, no end-use load is taken into scenario, large prospective customers are calculated
account because the potential of large loads in SEZ and IE separately using the end-use method. As a result, the final
are not considered. On the other hand, the High scenario demand is the sum of the forecasted demand based on the
represents optimistic growth by taking into account the regression and the end-use method.
medium growth of loads. The end-use loads considered are
all potential large customers in SEZ and IE that can be served Furthermore, energy production is calculated from energy
by the utility. Table II contains a summary of the scenario. sales by including own use in power plants and substations,
as well as transmission and distribution network losses. Peak
B. Workflow load is calculated for each province based on energy
The demand forecast workflow is depicted in Fig. 3. The production and the average load factor per year.
forecast is based on both historical and projection data. It C. Data
considers the major independent variables such as GRDP,
population, electrification ratio, and electricity prices. Time- Historical energy data, GRDP, total population,
series data for those variables are then generated from the electrification ratio, and electricity price are all required for
input data, ranging from 2020 to 2050. Inflation is assumed electrical energy demand projection. On the other hand, peak
to be the only factor influencing the forecast for the average load calculations necessitate the use of historical peak load
price of electrical energy. data, line losses, and system load factors. Table III and Table
IV contain information about the data that was used.
The model is created by repeatedly running the Simple
Econometric Simulation System, Expanded (Simple-E) with TABLE II. DEMAND FORECAST SCENARIO
different combinations of independent variables. The process Business as Usual (BaU) High
is repeated until the best-fitted regression equation is Low economic growth based on Medium economic growth based
obtained by incorporating multiple statistical test indicators. RPJMN 2020-2024 on RPJMN 2020-2024
The R2 and AR2 (Adjusted R2) tests are two of them. Normal load growth in SEZ and Considering all potential large
IE, without considering potential customers in SEZ and IE
major customers
Historical and
Simple-E Output
Projection Data
GRDP Data
Statistical Test
(~2000-2050)
(~2000-2050) Energy
R-squared
Demand
End-Use Peak
Electrification Ratio Data Forecast of
Demand Load
(~2000-2050) Residential,
Projection Forecast
Commerical,
Adjusted R-squared
Electricity Price Data Public, and
(~2000-2050) Industry
Province
Data
Maluku North Maluku Papua West Papua
Energy sales and Yearly historical data 2000-2019 2002-2019 2001-2019 2001-2019
production Average annual growth 10.34% 11.4% 9.95% 8.84%
GRDP Yearly statistical and forecast data 2000-2050 2000-2050 2000-2050 2000-2050
Average annual growth (BaU; High) 5.05%; 5.36% 5.38%; 5.69% 4.35%; 4.67% 5.49%; 5.81%
Total population Yearly statistical and forecast data 2000-2050 2000-2050 2000-2050 2000-2050
Average annual growth 1.65% 1.76% 2.19% 2.31%
Electrification ratio Yearly statistical and target data 56.15% (2000) 99.66% (2018) 24.3% (2001) 44.03% (2005)
100% (2050) 100% (2050) 100% (2050) 100% (2050)
Electricity price Price 1,017-1,352 (2019) 1,142-1,307 (2019) 1,159-1,393 (2019) 1,208-1,394 (2019)
Annual growth 3.5% 3.5% 3.5% 3.5%
260on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
Authorized licensed use limited to: UNIVERSITAS GADJAH MADA. Downloaded
TABLE IV. DATA FOR ELECTRICITY PEAK LOAD DEMAND FORECAST
Province
Data
Maluku North Maluku Papua West Papua
Peak load historical Yearly statistical data 2003-2019 2002-2019 2002-2019 2004-2019
data Average annual growth 9.42% 9.58% 10.64% 9.37%
Average power Transmission 1.11% 1.06% 0.17% 0.16%
system losses (2019-2050) (2019-2050) (2017-2050) (2020-2050)
Distribution 10.81% 8.37% 6.96% 8.8%
(2002-2050) (2002-2050) (2001-2019) (2003-2050)
Load factor Yearly statistical and forecast data 2002-2050 2002-2050 2001-2050 2003-2050
Yearly average 0.6 0.6 0.64 0.61
261on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
Authorized licensed use limited to: UNIVERSITAS GADJAH MADA. Downloaded
5,000 6,000
4,000 5,000
Energy (GWh)
Energy (GWh)
4,000
3,000
3,000
2,000
2,000
1,000 1,000
0 0
(a) (b)
8,000 5,000
4,000
6,000
Energy (GWh)
Energy (GWh)
3,000
4,000
2,000
2,000
1,000
0 0
(c) (d)
Fig. 4 Electrical energy demand forecast of (a) Maluku; (b) North Maluku; (c) Papua; (d) West Papua
100% 100%
Energy Use by Sector
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%
2020 2050 2020 2050 2020 2050 2020 2050 2020 2050 2020 2050 2020 2050 2020 2050
Maluku North Papua West Papua Maluku North Papua West Papua
Maluku Maluku
(a) (b)
Fig. 5 Electrical energy use by sector of (a) BaU scenario; (b) High scenario
262on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
Authorized licensed use limited to: UNIVERSITAS GADJAH MADA. Downloaded
Peak Load (MW) 1,000 1,000
(a) (b)
1,500 1,000
Peak Load (MW)
(c) (d)
Fig. 6 Peak load forecast of (a) Maluku; (b) North Maluku; (c) Papua; (d) West Papua
263on December 22,2022 at 07:50:20 UTC from IEEE Xplore. Restrictions apply.
Authorized licensed use limited to: UNIVERSITAS GADJAH MADA. Downloaded