Application of LPG for power generation in Indonesia can be replacing the usage of fuel-oil at the existing power plant. It turns out that LPG is also a flexible and low-emission alternative to other fuel types within power generation that equal with other natural gas such as LNG or CNG. The main LPG advantages are the distribution which very well developed in Indonesia, handling LPG is also cheaper and saver since it does not have to be transported in cryogenic temperatures like in the case of

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... LNG, neither high pressurized tank in the case of CNG terminal. Therefore, LPG might be a good solution for gasification program for the fuel-oil-driven power plants, which currently facing obstacles in the high cost of LNG regasification infrastructure, whereas this is a major concern in a long term investment in the power industry. This paper presents a techno-economy and distribution analysis start with the analysis matrix of how feasible a power plant to be converted to LPG until the calculation of capital expenditure, operation expenditure includes the distribution cost and distribution clustering scheme for the LPG supply chain. The existing power plants were divided into 13 clusters, where the study found 5 clusters are very competitive with the energy price less than 4 USD/MMBTU, 4 clusters are average competitive with the energy price between 4 to 6 USD/MMBTU, and 4 other clusters are not competitive with the energy price more than 6 USD/MMBTU.