Ministry identifies 33 coal power plants for early retirement

By Lambok Dominikus

The Ministry of Energy and Mineral Resource has identified 33 coal-fired power plants (PLTUs) with combined capacity of 16,810 MW as potential targets for early retirement program.

Ervan Mobi, an official at the ministry, said at the OECD Focus Group Discussion on 18 April, that 28 PLTUs (with total capacity of 13,531 MW, or 80%) are owned by state-owned electricity firm PT PLN and 5 PLTUs (3,279 MW, or 20%) are owned by independent power producers.

The 33 coal-fired power plants include PLTU Nagan Raya Unit 1-2 (220 MW), PLTU Pangkalan Susu 1-2 (400 MW), PLTU Labuhan Angin 1-2 (230 MW), PLTU Teluk Sirih 1-2 (224 MW), PLTU Ombilin 1-2 (100 MW), PLTU Bukit Asam 1-3 (195 MW), PLTU Keban Agung 2 (120 MW), PLTU Tarahan 3-4 (200 MW), PLTU Sebalang 1-2 (200 MW), PLTU Tj Balai Karimun 1-2 (14 MW), PLTU Air Anyir 1-2 (60 MW), PLTU Suralaya 1-2 (800 MW), PLTU Suralaya 5-7 (1,892 MW), Suralaya 8 (625 MW), PLTU Lontar 1-3 (945 MW), PLTU Labuan 1-2 (600 MW), PLTU Pelabuhan Ratu 1-3 (1,050 MW), PLTU Cirebon (660 MW), PLTU Cilacap 1-2 (600 MW), PLTU Indramayu 1-3 (990 MW), PLTU Adipala (600 MW), PLTU Rembang 1-2 (630 MW), PLTU Pacitan 1-2 (560 MW), PLTU Tj Awar-awar 1-2 (700 MW), PLTU Paiton 5-6 (1,732 MW), PLTU Paiton 1-2 (800 MW), PLTU Paiton 9 (660 MW), PLTU Celukan Bawang (380 MW), PLTU Anggrek 1-2 (55 MW), PLTU Amurang 1-2 (50 MW), PLTU Tidore 1-2 (14 MW), and PLTU Ende 1-2 (14 MW).

Read also: PLN seeks to cancel early retirement of coal plants through co-firing

The ministry’s list is much more aggressive than the plan made by state-owned electricity firm PT PLN. According to Ervan’s presentation, PLN and the Coordinating Ministry for Investment and Maritime Affairs have suggested a total PLTU capacity of 5.9 GW for early retirement program.

Meanwhile, according to the report of CIF (Climate Investment Fund) on Accelerating Coal Transition (ACT), as announced by the Ministry of Finance, PLN has proposed 9 PLTUs with combined capacity of 4.9 GW to be early retired before 2030.  The PLTUs include Suralaya 1 (400 MW), Suralaya 2 (400 MW), Suralaya 5 (600 MW), Suralaya 6 (600 MW), Suralaya 7 (600 MW), Suralaya 8 (625 NW), Paiton 1 (400 MW), Paiton 9 (615) MW dan Adipala (660 MW).  The 9 PLTUs have total book value of US$5.57 billion.

The government is planning early retirement of coal-fired power plants as part of a strategy to realize its 2060 net zero emission goal.  The government expects foreign donors to help finance the early retirement program of the PLTUs.  Late last year, the government signed the US$20 billion Just Energy Transition Partnership (JETP) agreement to help finance the program, but PLN said that it would require much greater funds to realize the program.

Editing by Reiner Simanjuntak

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