Circular Economy Approach for PV-Grid Charging Station and Economic Feasibility Analysis. Case Study: Central Java Provinces, Indonesia
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Abstract
This study identifies the sustainability challenges of transportation carbon emissions in Central Java, which remains dominated by coal-fired power plants (62%), rendering electric vehicle (EV) adoption less effective in reducing carbon emissions while simultaneously facing limited Public Electric Vehicle Charging Station (PEVCS) infrastructure. To address this gap, this study develops a hybrid solar-grid PEVCS business model using a circular economy 9R framework approach—with a specific focus on the R2 (Reduce) strategy to minimize carbon emissions as non-recyclable waste by reducing PEVCS dependence on fossil fuel-based grid electricity—and engineering economic feasibility analysis. A three-stage sensitivity simulation was conducted, iterating from 100% to 30% solar PV ratios, to identify the optimal energy mix that maximizes carbon reduction while satisfying all four engineering economics feasibility criteria (NPV > 0, ROI > 10%, PP < investment horizon, and BC Ratio > 1). Results reveal an optimal ratio of 36% solar PV and 64% grid power, which constitutes the mathematical realization of the R2 strategy, capable of reducing carbon emissions by 36% compared to grid-powered PEVCS—from 302,940 kg CO2 to 193,882 kg CO2 annually—while remaining economically viable with an NPV of IDR 2.461 billion, ROI of 10.5%, BC Ratio of 1.5, and a payback period of 9.5 years. This study provides practical solutions for policymakers and entrepreneurs in accelerating sustainable electric vehicle transition in Central Java.
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