Cirebon power station
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Cirebon power station is an operating power station of at least 1584-megawatts (MW) in Kanci Kulon, Astanajapura, Cirebon, West Java, Indonesia with multiple units, some of which are not currently operating. It is also known as 井里汶电站.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Cirebon power station | Kanci Kulon, Astanajapura, Cirebon, West Java, Indonesia | -6.770286, 108.614858 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1, Unit 2, Unit 3: -6.770286, 108.614858
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year | Retired year |
|---|---|---|---|---|---|---|
| Unit 1 | operating | coal: unknown | 660 | supercritical | 2012 | 2035 (planned) |
| Unit 2 | operating | coal: unknown | 924 | ultra-supercritical | 2023 | – |
| Unit 3 | cancelled | coal: unknown | 1000 | ultra-supercritical | – | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1 | PT Cirebon Electric Power [100%] | Marubeni Corp [32.5%]; Korea Electric Power Corp [27.5%]; PT Indika Energy Tbk [20.0%]; Samchully Co Ltd |
| Unit 2 | PT Cirebon Electric Power [100%] | Marubeni Corp [32.5%]; Korea Electric Power Corp [27.5%]; PT Indika Energy Tbk [20.0%]; Samchully Co Ltd |
| Unit 3 | PT Cirebon Electric Power [100%] | Marubeni Corp [32.5%]; Korea Electric Power Corp [27.5%]; PT Indika Energy Tbk [20.0%]; Samchully Co Ltd |
Background
The Cirebon power station is a coal-fired power plant developed by Cirebon Electric Power (CEP) in the Kanci area to the southeast of Cirebon, Indonesia.[1] CEP is a joint venture between four companies: Japan-owned Marubeni Corporation (32.5%), Korea Midland Power Co (27.5%), South Korean company Samtan Co Ltd (20%) and Indonesian company PT Indika Energy (a subsidiary of the Indika Group) (20%).
Like other IPPs in Indonesia, the plant will sell the electricity produced to the PLN at an agreed feed-in tariff price. The initial agreed rate was reported to be US 4.43 cents per kWh (USD 0.0443/kWh) although, because of high coal prices, it was reported that the PLN would adjust the purchase price upwards to US 5.2 cents per kWh (USD 0.052/kWh).
The first unit of the plant was launched in mid October 2012. The reported cost of the plant was nearly $850 million. Construction began in 2008 and was completed in mid-2012. Sales from the plant to the Indonesian state-owned electricity company PLN began in July 2012.[1]
In November 2022, Indonesia committed to capping power sector emissions and doubling renewable energy generation by 2030, utilizing US$20 billion in grants and concessional loans. Indonesia’s Energy Transition Mechanism signed a non-binding agreement to close Unit 1 of the Cirebon power station. The target was retirement by 2037, which was 15 years before the initial targeted lifespan.[2][3]
A February 2023 article highlighted environmental and social concerns that had not yet been addressed by retirement plans. Friends of the Earth Indonesia (WALHI) stated that over 3,000 farmers and fishermen have had their livelihoods disrupted by the power station. The article argues that the November 2022 announcement was insufficient without reparations for the local community, especially because the expansion unit was expected to begin operation soon under the same ownership.[4]
In July 2023, the government announced that an early retirement of Cirebon 1 would be announced in 2023 as part of a PLN trial project on coal plant early retirements.[5] As of August 2023, negotiations on refinancing the plant for early retirement were ongoing among the Asian Development Bank (ADB), private sector banks, and the power station's investors.[6]
In December 2023, the Government of Indonesia and ADB officially announced the deal to retire Unit 1 of Cirebon power station at the end of 2035. The deal was revealed at the COP28 conference in Dubai. Cirebon 1's power purchase agreement would be ended 7 years early through a first of its kind Energy Transition Mechanism (ETM) framework. ADB hoped to replicate the deal for other projects.[7]
In January 2024, a Center of Economic and Law Studies analysis found that the retirement of Cirebon power station and Pelabuhan Ratu power station would eliminate up to 14,022 jobs, but their replacement by renewable energy alternatives would create up to 639,269 jobs.[8]
Description of Expansion
There are plans to extend the Cirebon plant with the installation of an additional 2 x 1,000-MW units, units 2 and 3, costing around US$2 billion.[1] In November 2013, CEP announced that it was set to start the construction of the plant's second unit, which will provide an additional power supply of 1,000 megawatts (MW) in 2014, with completion targeted for 2018.[9] This plant is also shown in PLN's 2013-2022 long-range plan with a 2018 completion. [10] Funding for the project would come from loans from the Japan Bank for International Cooperation and the Export-Import Bank of Korea.[11] The PT PLN 2018-2027 long range plan lists Unit 2 as 924 MW with a completion date of 2020.[12]
In December 2014, government officials allocated land for the project. At that time, construction was planned to begin in 2015, with completion in 2020.[13]
In April 2015, project co-sponsor Indika withdrew from the power station, citing financial difficulties.[14]
In May 2015, PT Cirebon Energi Prasarana (CEPR), the developer of Cirebon II power plant, said construction of Cirebon II would begin near the end of 2015,[15] later pushed to January 2016.[16]
In March 2016, Director of Corporate Planning of PLN Nicke Widyawati said PLN expects to begin construction of the plant within the month.[17]
In May 2016, it was reported that initial construction prep on unit 2 was underway, and a 1,000 MW ultra-supercritical unit 3 was planned.[18]
In December 2016, a legal challenge to the project was filed by The People for Environmental Protection (RAPEL), with legal representation by the Advocacy Team for Climate Justice. At the heart of the legal challenge was RAPEL’s claim that local planning law only permitted power plant development in the district of Astanajapura, and that the Cirebon 2 expansion also extended into Mundu district, which was zoned for local livelihoods. On April 19, 2017, the regional court in Bandung ruled the environmental permit for the plant was issued illegally.[19]
A coalition of Japanese groups are calling on JBIC to immediately review and repeal its decision to provide financing for Cirebon 2, saying the project is illegal according to local law and in violation of the “JBIC Guidelines for Confirmation of Environmental and Social Considerations,” which require “the compliance with environmental laws of the host nation and local governments concerned” and “the submission of environmental permit certificates issued by the host governments.”[20]
In October 2017, the Head of Communications at Cirebon Electric Power, Yuda Panjaitan, said problems around Spatial Planning (RTRW) and licensing in the State Administrative Court (PTUN) had been resolved, and Unit 2 had now obtained an environmental permit from the West Java Provincial Government under the legal umbrella of Government Regulation No. 13 of 2017. The plant was reported as under construction,[21] but Google Earth (dated November 1, 2017) shows only leveling of the site has begun, but no visible construction of the power station.
In September 2018, it was reported that construction of Cirebon 2 was 24% complete.[22]
In October 2018, the KOMIPO CEO told a Korean National Assembly hearing that “construction on Cirebon 3 has been suspended” and “we plan to do renewables.” The statements came while the CEO was being questioned by Assemblywoman Bae-sook Cho of the Trade, Industry and Energy Committee, who criticized the lack of emission controls attached to Cirebon 1 compared to Korean coal plants, and said coal will be an unreasonable choice in six to seven years when Cirebon 2 is completed, given the LCOE trends. According to an anonymous source within KOMIPO: “As of now we are not in the condition to proceed with the construction of Unit 3. This is because the Indonesian Government did not reflect the plant (Cirebon 3) in its power supply and demand plan.”[23]
In February 2019, the government's long-range plan for 2019-2028 listed the project with a completion date of 2022.[24] Construction was 28% complete as of February 2019.[25] Construction was 61% complete as of September 2019.[26]
In March 2020, the project's sponsor declared force majeure and stated that development would be delayed as a result of the COVID-19 pandemic.[27] As of June 30, 2020 construction was reported to be 81.15% complete by the Directorate General of Electricity.[28]
In February 2021, PLN's Regional Business Director for Java, Madura and Bali said that Unit 2 would be commissioned in 2022.[29]
In April 2023, Unit 2 was reportedly 99.8% complete and was slated for commercial operation in mid-May 2023.[30]
As of mid-June 2023, the unit was not yet operating.[31]
In September 2023, an article stated that Cirebon II had been operating for "a matter of months". The unit appeared to have gone online in July or August 2023.[32]
Cancellation of Unit 3
As of June 2020 there had been no progress on Unit 3 since a May 2016 by Marubeni and other potential sponsors, and the unit appears to be cancelled.
Financing
Unit 1: The financing agreement for Unit 1 was closed in March 2010. US$595 million in debt was provided by the Japan Bank of International Cooperation, the Export-Import Bank of Korea, ING Group, Sumitomo Mitsui Banking Corporation, Mizuho Financial Group, and MUFG Bank. US$255 million in equity was provided by KEPCO, Marubeni, PT Tripatra Engineers & Constructors, and ST International.[33]
Unit 2: In May 2016 a press article listed a consortium of five banks (ING, Crédit Agricole, Mizuho, SMBC, MUFG) set to provide a US$640 million loan for financing of Unit 2, aiming to reach financial close by the beginning of the third-quarter of 2016. The export credit agencies Exim Bank of Korea, JBIC, and Nippon Export and Investment Insurance (NEXI) are also considering financing for the project.[34]
In April 2017, a loan agreement was finalised to provide US$1.74 billion for Cirebon 2. The export credit agencies Japan Bank for International Cooperation (JBIC) and the Export–Import Bank of Korea (Kexim) will provide 66% of project debt (US$1.148 billion). The private banks ING, Mitsubishi UFJ Financial Group, Mizuho Bank and Sumitomo Mitsui Banking Corporation are providing the remaining 34% of project debt (US$592m). The commercial bank loans are being insured by Kexim and the Nippon Export and Investment Insurance (NEXI). The project sponsors are providing US$435 million in equity to cover the remainder of the US$2.175 billion project costs.[35] The lead arranger of finance for the project is the global Dutch bank ING, which rejected pressure to withdraw from its role despite adopting a policy in November 2015 that it would reduce its exposure to coal projects.[19]
2023-2024 Refinancing Unit 1 (Proposed) - Refinancing transaction was proposed in 2022/2023 under the Energy Transition Mechanism developed by the ADB. USD 250-300m facility on the condition that Unit 1 retires earlier (target 2035). In December 2023, a nonbinding framework agreement was signed at COP28 by ADB, PT PLN and PT Cirebon Electric Power stating that they conditionally agreed to shorten the PPA and end the plant’s obligation to provide electricity in December 2035 instead of the original July 2042. The transaction is to be finalized in the first half of 2024. The framework agreement confirmed the parties will continue discussing the financing scheme for the early retirement of Cirebon Unit 1.[36] As of September 2024, there was no news on the closing of the transaction.
Bribery Scandal
In May 2019 Hyundai Engineering & Construction admitted that it had given bribes of between Rp 6.5 billion and Rp 9.5 billion to Cirebon Regent Sunjaya Purwadisastra to appease residents who were opposed to construction of Cirebon 2.[37] In October 2019 Indonesia's Corruption Eradication Commission (KDK) banned three additional suspects in the case from leaving the country for three years.[38] Investigation of the bribery allegations was delayed in February 2021 when PT Cirebon Power's Corporate Affairs Director Teguh Haryono failed to appear in response to a summons of the Corruption Eradication Commission.[39]
In December 2022, the KDK announced that a former broker of Hyundai Engineering & Construction would be arrested for his alleged involvement in the bribery scandal. As Hyundai maintained their denial of the allegations, an ongoing legal battle was likely.[40]
In March 2023, Friends of the Earth Japan and three other NGOs called on Japan’s Ministry of Finance and the Japan Bank for International Cooperation (JBIC) to suspend financial disbursements for the project until a verdict was determined on the bribery charges.[41]
In August 2023, former Regent Sunjaya Purwadisastra was convicted of bribery and money laundering, which included bribes related to the Cirebon 2 expansion.[42][43] In August 2024, the Indonesian Supreme Court confirmed the conviction. Following the ruling, Walhi (Friends of the Earth Indonesia) and three other local community organizations and NGOs called on the JBIC to immediately suspend the loans for the project and require mandatory prepayment of loans for the unit, in line with the provisions of its anti-bribery policy.[44]
Opposition to Plant
Protests from the community in relation to its land acquisition status delayed initial operation of the plant.[1]
In December 2016 a legal challenge to the project was filed by The People for Environmental Protection (RAPEL), with legal representation by the Advocacy Team for Climate Justice. At the heart of the legal challenge was RAPEL’s claim that local planning law only permitted power plant development in the district of Astanajapura, and that the Cirebon 2 expansion also extended into Mundu district, which was zoned for local livelihoods. On April 19, 2017, the regional court in Bandung ruled the environmental permit for the plant was issued illegally.[19]
In February 2023, ResponsiBank Indonesia and WALHI (Friends of the Earth Indonesia) called on CEP and its shareholders to be held accountable for the damages the power station has placed on surrounding communities. Residents living between the Cipaluh and Kanci rivers have repeatedly voiced concerns over the social, environmental and public health impacts of Cirebon-1.[45]
Environmental Impact
Three villages located close to the Cirebon power station are experiencing severe health impacts due to coal ash from the power station being blown into residential areas. Five public health centers near the power station documented a drastic uptick in severe respiratory illness among the villagers, from 613 people in 2018 to 1,525 people in 2019.[46]
An August 2023 special report in the Jakarta Post described how fly ash and emissions from the Cirebon power station had polluted the farmland and fishing grounds of nearby villages.[47]
A June 2024 report by the Centre for Research Energy and Clear Air (CREA) estimated that air pollution from Cirebon 1 was linked to 441 deaths a year and an associated annual economic burden of US$308 million (IDR 4.57 trillion). Cirebon 1 and Pelabuhan Ratu power station Units 1-3 have been earmarked for early retirement under Indonesia's Just Energy Transition Partnership (JETP) plan, and Banten Suralaya power station Units 1-4 have been mentioned as another likely candidate for early closure. CREA's report noted that these three plants account for only 20% of the top ten most polluting coal plants in Java, and that "considering health impacts as part of the factors in setting coal retirement pathways is not explicitly stated in the JETP" plan.[48]
Articles and Resources
References
- ↑ 1.0 1.1 1.2 1.3 Cirebon power plant on stream for Java and Bali, Amahl S. Azwar, The Jakarta Post, 19 October 2012.
- ↑ "Indonesia Gets State Wealth Fund to Retire 660MW Coal Plant," Bloomberg, November 13, 2022
- ↑ "Indonesia coal-fired IPP taps ADB for early retire". www.ijglobal.com. November 2022.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Indonesia’s Cirebon 1 coal power project highlights gaps in ADB’s ‘coal-to-clean’ ETM scheme," Prakarsa, February 10, 2023
- ↑ "Kementerian BUMN Pastikan PLN Eksekusi Pensiun Dini PLTU Cirebon 1 Tahun Ini," Kontan.co.id, July 13, 2023
- ↑ "Closing Coal Plants Proves a Hard Sell for Big Global Banks," Bloomberg, August 14, 2023
- ↑ "Indonesia, ADB, owners agree to shutter first coal-fired power station early," Reuters, December 3, 2023
- ↑ "Prabowo-Gibran pledge to continue energy transition," Indonesia Business Post, January 31, 2024
- ↑ "New 1,000 MW-power plant to be built in Cirebon" Anggi M. Lubis, The Jakarta Post, Jakarta, November 13, 2013.
- ↑ “PLN Long Term Electricity Plan (2013-2023),” presentation by Moch. Sofyan, Head of New & Renewable Division of PT PLN (Persero), 06 March 2014
- ↑ Pembangunan PLTU Cirebon Unit 2 Ditargetkan Pertengahan 2014, Berita Satu, 5 Dec. 2013.
- ↑ Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2018-2027, PT PLN Persero, V-4
- ↑ Utilisasi Kerja Sama Pemanfaatan BMN KPKNL Jakarta II: Kerjasama Pemanfaatan untuk Proyek PLTU Cirebon Jawa Barat, Direktorat Jenderal Kekayaan Negara website, 11 Dec. 2014.
- ↑ Anggi M. Lubis, "Indika cancels Cirebon power plant project," The Jakarta Post, April 30 2015
- ↑ "Cirebon II Steam Power Plant Construction to Start by Year-end," Tempo, May 12, 2015
- ↑ "Pembangunan PLTU Cirebon II Harus Negosiasi Ulang dengan Pendana," Tribun Jabar, 2 July 2015
- ↑ "PLN expects to soon start construction of PLTU Jawa 7, PLTU Cilacap, PLTU Cirebon," RambuEnergy, March 1, 2016
- ↑ "Marubeni, Partners To Build New Power Plant In Indonesia," Asia Power, 24 May 2016
- ↑ 19.0 19.1 19.2 Bob Burton, "Embarrassment for Japanese Government bank as court rules coal plant’s permit illegal," EndCoal, Apr 19, 2017
- ↑ "Cirebon Coal-fired Power Plant Projects, West Java, Indonesia," FOE Japan, Apr 17, 2017
- ↑ PLTU Cirebon Unit 2 Ditargetkan Beroperasi pada 2021, Liputan 6, Oct. 2, 2017
- ↑ Cirebon PLTU 2 Project Reaches 24%, Detik Finance, Sep. 27, 2018
- ↑ "중부발전, 찌레본 석탄화력 신규 발전사업 중단하나," ElecTimes, 2018년 10월 22일
- ↑ Rencana Usaha Penyediaan Tenaga Listrik (RUPTL) 2019-2028, PT PLN Persero, V-43
- ↑ PLTU Cirebon Unit II Dipastikan Beroperasi Tahun 2022, Katadata, Feb. 7, 2019
- ↑ Terhubung Dengan Kasus Suap, Pembangunan PLTU Cirebon II Jalan Terus, Katadata, Sep. 16, 2019
- ↑ Jadwal operasional pembangkit terganggu wabah corona, ini tanggapan PLN, Kontan, Mar. 8, 2020
- ↑ Simak! Berikut pembangkit dan proyek kelistrikan 35.000 MW yang terdampak Covid-19, Kontan, Aug. 2, 2020
- ↑ Termasuk PLTU Batang, 2022 Akan Nambah 5.000 MW Pembangkit, CNBC Indonesia, Feb. 23, 2021
- ↑ Grup Indika (INDY) Siap Operasikan PLTU Cirebon II, Tambah Cuan, Bisnis, April 9, 2023
- ↑ PLTU unit 2 Cirebon Masih Uji Coba Terbatas, Bandung Bisnis, June 8, 2023
- ↑ Kementerian ESDM Apresiasi PLTU Cirebon 2 Terapkan Baku Mutu Emisi Internasional, Republika, September 27, 2023
- ↑ Cirebon Coal-Fired Power Plant (660MW) IPP, IJGlobal, May 29, 2017
- ↑ "Cirebon 2 coal fired power plant," BankTrack, accessed Dec 2016
- ↑ "Cirebon 2 Coal-Fired Power Plant (1000MW) IPP," IJGlobal, accessed Sep. 2020
- ↑ "New Agreement Aims to Retire Indonesia 660-MW Coal Plant Almost 7 Years Early". www.adb.org. December 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ Hyundai Akui Suap Bupati Cirebon dalam Proyek PLTU, Katadata, May 3, 2019
- ↑ Kasus Bupati Cirebon Sunjaya, KPK Perpanjangan Larangan ke Luar Negeri Bagi 3 Tersangka, Katadata, Oct. 30, 2019
- ↑ [1], Liputan6, Feb. 17, 2021
- ↑ Indonesian Authorities to Arrest Hyundai E&C Broker over Bribery Scandal, Business Korea, December 12, 2022
- ↑ Commencement of Trial in the Bribery Case of Cirebon Coal-Fired Power Plant Unit 2 in Indonesia: JBIC should suspend its loan disbursement and take responsible actions to halt the project!, Friends of the Earth Japan, March 29, 2023
- ↑ "KPK Nyatakan Pikir-Pikir atas Vonis 7 Tahun eks Bupati Cirebon Kasus "Uang SPP"," August 2023
- ↑ "Bribery of Project Owner Revealed at Cirebon Coal Plant Unit 2 in Indonesia - Request Submitted to MoF and JBIC for Prompt Suspension of Public Support," Friends of the Earth Japan, August 18, 2023
- ↑ “Conviction Confirmed for Bribery of Cirebon 2 Coal-Fired Power Plant in Indonesia: “JBIC Must End Public Financing!” Local Residents and NGOs Demanded,” Friends of the Earth Japan, August 7, 2024
- ↑ Indonesia's Cirebon 1 coal power project highlights gaps in ADB's 'coal-to-clean' ETM scheme, Eco-Business, February 7, 2023
- ↑ Riky Ferdianto, Voices Against the Waste, Tempo, June 11, 2021
- ↑ "Silent, invisible danger on Cirebon coast," The Jakarta Post, August 31, 2023
- ↑ "Health and economic benefits from early phase out of Indonesia’s first JETP coal power plants," Centre for Research Energy and Clear Air, June 20, 2024
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
