January 22, 2018 Read More →

Government Urged to Abandon the Construction of Coal-fired Power Plants in Java

BBC Indonesia:

Environmentalists joining the coalition of Break Free from Coal have rejected the construction of nine coal-fired steam power plants in Java on the grounds that they are not environmentally friendly as well as the need for Java’s electricity is sufficient.

“This is a big project worth trillions of rupiah that will be wasted,” said Hindun Mulaika, Greenpeace Indonesia climate and energy campaigner on Friday.

A total of nine coal-fired power plants will supply nearly 13,000 MW, with an investment value of US $26 billion. The construction is part of a 35,000 MW electricity procurement project set by President Joko Widodo. The Directorate General of Electricity is determined to continue the coal-fired power plant project as part of the 35,000 MW project, choosing coal because of its economic value.

But environmentalists say Java is no longer in need of additional electricity supply because it still has reserve margin of 41%. Whereas if nine coal-fired power plants were to be built, the reserve margin will be 71%, which is considered as waste.

The activists also highlighted the financial scheme of coal-fired power plant development in Java, related to PT PLN’s obligation as a state-owned company to purchase electricity from private power plants. Funds to build nine power plants generally come from loans or foreign debt, which will burden the government and the need to buy electricity and loan interest can also worsen the financial condition of PT PLN.

Based on data from the Committee for the Acceleration of Priority Infrastructure Provision (KPPIP), Darmin said that the demand for electricity is not as high as the 35,000 MW program.
An Institute for Energy Economics and Financial Analysis (IEEFA) report, for example, also mentions PLN’s potential loss due to capacity payments of up to US $3.16 billion for every unused gigawatt in the Java-Bali generation system.

The construction of nine coal-fired power plants is expected to increase carbon emissions that trigger global warming. “About 70 million tons of carbon emissions will be released,” said Irfan Toni, activist of Digital 350.org, which is engaged in climate change advocacy.

Toni added that construction is at odds with the Paris Agreement, which was signed by Indonesia as a determination to reduce carbon emissions.

Government Urged to Abandon the Construction of Coal-fired Power Plants in Java

Posted in: IEEFA In the News

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