Celukan Bawang power station

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The Celukan Bawang power station is a 380-megawatt (MW) coal-fired power station in Celukan Bawang, Buleleng Regency, North Bali, Indonesia. Two additional units of 330 MW each have been proposed at the same location.

Location

The map below shows the plant, in Gerokgak District, Buleleng Regency, Bali Province.

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Background on Plant

The Celukan Bawang power station is a three-unit coal-fired power plant currently being built by China Huadian in Bali. While reports of the size of the project differ, several reliable sources list this initial three-unit plant as being composed of three 142-MW coal-fired units, totaling 426 MW.

Various sources refer to the plant as 380 MW, including the sponsor.

In October 2010, the government of Indonesia signed a US$1.5 billion memorandum of understanding with two Chinese companies, China Huadian Engineering Corporation Ltd and China Huadian Development. The project broke ground that same month. The cost of the plant itself would be Rp. 7 trillion (US$761 million). Both are subsidiaries of China Huadian Corporation.

As of late 2014, construction of the initial three units was apparently nearing completion, despite delays. In August 2015, the Indonesian papers reported that Units 1-3 had come on stream.

Finance

Units 1-3 of the plant were built with an investment of US$880 million by the China Development Bank. The plant was built by PT China Huadian Engineering, PT Merryline International, and PT General Energy Indonesia.

Proposed expansion

Several news sources mention a proposed second-phase expansion of two 330-MW coal-fired units.

On January 24, 2018, representatives of the Celukan Bawang community with Greenpeace Indonesia accompanied by legal counsel from YLBHI-LBH Bali filed a lawsuit against the Governor of Bali's decision (No. SK. 660.3 / 3985 / IV-A / DISPMPT) to grant an environmental permit for the 2 X 330 MW expansion. According to YLBHI-LBH Bali, the EIA evaluation was not holistic and did not have community involvement as required by law. Additionally, the groups argue the expansion was not included in the Indonesia National Electric Power Supply Plan (RUPTL 2017-2026) and that Bali has sufficient power capacity to meet its power demand. The proposed expansion does not appear in the 2018-2027 long-range plan either. In February 2019 residents of Celukan Bawang and Greenpeace Indonesia filed an appeal through the Denpasar Administrative Court to block construction of the expansion and have its permit revoked.

In October 2019 Bali Governor I Wayan Koster asked Global Energy Bali to use gas instead of coal to fuel the plant.

Opposition and scandals

Huadian has long had disagreements with local communities about land acquisition. In December 2013, February 2015, and apparently on other occasions, local residents have blocked the entrance to the construction site, complaining that some of the land being used on the project had never been fully acquired by Huadian and still belonged to them. Also, people displaced by the construction have complained that they have not yet received title to the land that they were supposed to be given in compensation.

Huadian has also been criticized for failing to use local laborers — 90% of the construction workers on the site are apparently foreign workers, many brought in without proper authorization. In December 2012, immigration officials seized the passports of 75 illegal foreign workers at the site.

In October 2012, members of the Buleleng Regency government threatened to shut down construction at the site until problems were resolved. In April 2013, legislators from the Buleleng Legislative Council visited the construction site and found numerous violations, including use of heavy machinery without safety certificates and use of subsidized fuel in construction.

In April 2018 Greenpeace released "Polluting Paradise," a report on the economic, public health, and environmental impacts of the plant. Among the problems cited were "inadequate land compensation due to improper and non-transparent processes, the destruction of livelihoods, especially to farmers and fishermen, which has impoverished the local community, environmental damage caused by coal waste residue on land and at sea, worsening public health with an increase in respiratory illnesses, and inadequate monitoring of the health impacts of the power plant."

In June 2018 nine Indonesian and international environmental groups filed an amici curiae brief to Denpasar Administrative Court (PTUN), alleging that the project does not comply with the Environmental Protection and Environmental Law No.32 of 2009 and undermines Indonesia’s international climate commitment.

In September 2018 Bali's new governor Wayan Koster pledged to pressure the plant's owners to power Units 4 and 5 with gas instead of coal.

In May 2019 fishermen from Celukan Bawang staged a protest in Denpasar and claimed that pollution from the existing Celukan Bawang units was reducing their catch and making it harder to earn a living.

Environmental impact

A September 2019 article in Mongabay described the plant's negative impact on farming, fishing, and tourism in the area. Since the plant was commissioned in 2015 coconut harvests are down, fishing yields are down, and dolphins that drew tourists to the area have largely vanished from the bay adjacent to the plant.

Power industry in Bali

According to an article in The Jakarta Post, the Celukan Bawang power station is part of an effort to overcome a deficit of electricity on Bali. The island currently has access to 647.6 MW of electrical capacity:

• Pesanggaran diesel (11 units) - 70.754 MW
• Pesanggara gas (4 units) - 125.45 MW
• Gilimanuk gas (1 unit) - 133.8 MW
• Pamaron gas (2 units) - 97.6 MW
• Total generating capacity: 427.604 MW
• Underwater cables (Ketapang-Gilimanuk) providing 220 MW from the Java grid. The Bali Cross Project will provide an additional 1,600 MW of capacity to Bali.

Project sold as "clean coal" power

According to one report, among the purposes of Bali Governor Made Mangku Pastika in traveling to China in 2010 was to determine whether the proposed coal plant would be a double or triple combustion project: "I wanted to know if [the project] is environmentally friendly. Double or triple? If it is single burn the result is sulfur which is still dangerous. If the by products are processed again the results are environmentally friendly."

Coal development in the context of China's economic push into Southeast Asia

The development of the Celukan Bawang power station is part of an strategic push by China's National Development and Reform Commission (NDRC) to develop projects in Southeast Asia, with Indonesia a particular target of investment.

On January 1, 2010, China and the 10 nations that make up the Association of Southeast Asian Nationas (ASEAN) officially launched the China-ASEAN Free Trade Area. According to Zhang Guobao, vice-mininster of NDRC, "China is encouraging domestic firms to invest in Indonesia by actively participating in electricity, coal and gas-oil projects." According to the China Daily, Chinese projects in ASEAN countries are backed by capital and policy support from the central government.

In 2011, construction is expected to be completed on a 350 MW coal plant in the Indonesian beach-resort town of Pelabuhan Ratu.

Project Details

• Sponsor: General Energy Bali
• Parent company: China Huadian
• Location: Gerokgak District, Buleleng Regency, Bali Province
• Coordinates: -8.1962945, 114.8515677 (exact)
• Status: Operating (Units 1-3); Permitted (Units 4 & 5)
• Gross capacity: Units 1-3: 380 MW total; Units 4 & 5: 330 MW)
• Type:
• Projected in service: 2015 (Units 1-3); TBD (Units 4 & 5)
• Coal type:
• Coal source:
• Source of financing: China Development Bank (US$880 billion)

Alternative power sources

• Indonesia's geothermal potential

Articles and resources

Related SourceWatch articles

• China and coal
• Indonesia and coal
• China Huadian Corporation

External resources

• Indonesia Power website
• PT INDONESIA POWER: Bali Business Unit Flyer
• Buleleng guide, Bali regencies
• China Huadian Engineering Co., Ltd.