Cirebon power station

This article is part of the CoalSwarm coverage of Indonesia and coal
Sub-articles:
Indonesia and coal Bali and coal Existing mines Proposed mines Existing coal plants Proposed coal plants Power companies and agencies Mining companies Existing coal export terminals Proposed coal-related electricity transmission infrastructure
Related articles:
Global use and production of coal International Information on Coal World Bank and coal International coal plant funding China Huadian Corporation

Cirebon power station is a 660-megawatt (MW) coal-fired power plant in West Java Province, Indonesia. It is also the site of the proposed 924-MW Cirebon Unit 2 (also known as Jawa-1) and the proposed 1,000-MW Cirebon Unit 3.

Location

The undated satellite photo below shows the plant, which is located in Kanci Kulon Village, Astanajapura District, Cirebon Regency, West Java Province.

Loading map...

{"type":"HYBRID","minzoom":false,"maxzoom":false,"types":["ROADMAP","SATELLITE","HYBRID","TERRAIN"],"mappingservice":"googlemaps3","width":"600px","height":"600px","centre":false,"title":"","label":"","icon":"","visitedicon":"","lines":[],"polygons":[],"circles":[],"rectangles":[],"wmsoverlay":false,"copycoords":false,"static":false,"zoom":16,"layers":[],"controls":["pan","zoom","type","scale","streetview","rotate"],"zoomstyle":"DEFAULT","typestyle":"DEFAULT","autoinfowindows":false,"resizable":false,"kmlrezoom":false,"poi":true,"markercluster":false,"clustergridsize":60,"clustermaxzoom":20,"clusterzoomonclick":true,"clusteraveragecenter":true,"clusterminsize":2,"imageoverlays":[],"kml":[],"gkml":[],"searchmarkers":"","enablefullscreen":false,"scrollwheelzoom":false,"locations":[{"text":"","title":"","link":"","lat":-6.7702857,"lon":108.6148578,"icon":""}]}

Background on Plant

The Cirebon power station is a single-unit, 660-MW coal-fired power plant developed by Cirebon Electric Power (CEP) in the Kanci area to the southeast of Cirebon, Indonesia. 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.

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. 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. This plant is also shown in PLN's 2013-2022 long-range plan with a 2018 completion. Funding for the project would come from loans from the Japan Bank for International Cooperation and the Export-Import Bank of Korea. The PT PLN 2018-2027 long range plan lists Unit 2 as 924 MW with a completion date of 2020.

In December 2014, government officials allocated land for the project. At that time, construction was planned to begin in 2015, with completion in 2020.

In April 2015 project co-sponsor Indika withdrew from the power station, citing financial difficulties.

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, later pushed to January 2016.

In March 2016 Director of Corporate Planning of PLN Nicke Widyawati said PLN expects to begin construction of the plant within the month.

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.

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.

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.”

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, 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.

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.”

In February 2019 the government's long-range plan for 2019-2028 listed the project with a completion date of 2022. Construction was 28% complete as of February 2019. Construction was 61% complete as of September 2019.

Financing

In May 2016 a press article lists a consortium of five banks (ING, Crédit Agricole, Mizuho, SMBC, MUFG) set to provide a US$640 million loan to the project, 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.

In April 2017, a loan agreement was made to provide US$1.6 billion for Cirebon 2. The Export Credit Agencies Japan Bank for International Cooperation (JBIC) and the Export–Import Bank of Korea (Kexim) will provide 60% of project debt (US$960m). Private banks will provide the remaining 40% of project debt (US$640m), including ING Bank, Mitsubishi UFJ Financial Group, Mizuho Bank and Sumitomo Mitsui Banking Corporation. The loan is being insured by the Nippon Export and Investment Insurance (NEXI). The lead arrange 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.

Opposition to Plant

Protests from the community in relation to its land acquisition status delayed initial operation of the plant.

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.

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. In October Indonesia's Corruption Eradication Commission (KDK) banned three additional suspects in the case from leaving the country for three years.

Project Details

• Sponsor: PT Cirebon Electric Power (CEP)
• Parent company: Marubeni Corporation 35%; Indika Group 25%; Samtan Co Ltd 20%; Korea Midland Power Co 10%; Jera Power 10% (a JV between TEPCO and Chubu Electric Power)
• Location: Kanci Kulon Village, Astanajapura District, Cirebon Regency, West Java Province, Indonesia
• Coordinates: -6.7702857,108.6148578 (exact)
• Status: Unit 1: Operating (2012); Unit 2: Construction; Unit 3: Shelved
• Gross Capacity: Unit 1: 660 MW, Unit 2: 924 MW; Unit 3: 1,000 MW
• Type: Supercritical (Unit 1); Ultra-Supercritical (Units 2-3)
• Start date: 2022 (Unit 2)
• Coal Type:
• Coal Source:
• Source of financing: Cirebon 2: Japan Bank for International Cooperation (JBIC) and the Export–Import Bank of Korea (Kexim) (US$960m); ING Bank, Mitsubishi UFJ Financial Group, Mizuho Bank and Sumitomo Mitsui Banking Corporation (US$640m).

Articles and resources

Related SourceWatch articles

• Indonesia and coal