Page 10 - AsiaElec Week 48 2020
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AsiaElec                                     NEWS IN BRIEF                                           AsiaElec








                                                                                energy sources by 2019, but it only reached
                                                                                12.36 percent that year, according to energy
                                                                                ministry data.
                                                                                  Indonesia has also pledged to make solar
                                                                                contribute 5.7 percent to the country’s power
                                                                                by 2025, yet solar only contributed 0.1 percent
                                                                                in 2019.



                                                                                COAL-FIRED GENERATION

                                                                                Pakistan, China to sign
                                                                                Gwadar power plant

                                                                                agreement next month

                                                                                Pakistan and China on Monday agreed to sign
       campaign against the project.       shut down the aging Suralaya coal-fired power   a power purchase agreement next month for
         The new entity will use Adani Ports’   plant (PLTU) in Cilegon, Banten, and replace   300 megawatts coal power plant to be set up
       balance sheet to fund investments estimated at  it with green energy, as Indonesia chases its   with an estimated cost of over $360 million in
       $350 million for the 27-million-tonne-a-year   long-delayed commitments to cut carbon-  Balochistan.
       rail haulage capacity for locomotive and coal   dioxide emissions.         The decision was taken during a meeting of
       wagon purchases, plus associated maintenance   The Energy and Mineral Resources   the joint working group on Gwadar.
       facilities and equipment, port industry sources  (ESDM) Ministry’s freshly appointed   Officials told The News that the signing of
       said.                               renewables director general, Dadan K$iana,   power purchase agreement (PPA) for Gwadar
         The Adani Group has awarded the civil   said on November 16 that his office was   coal power plant has become a deliverable
       construction works contract worth $350   conducting an internal study to replace   for upcoming joint cooperation committee
       million for the Carmichael rail network   Suralaya with a battery-equipped solar farm   (JCC) that is expected to be held in December
       — its largest construction contract for the   (PLTS).                    through virtual meeting.
       Carmichael project yet — to Queensland-  Adding batteries to a solar farm makes   The meeting was co-chaired by Planning
       based BMD Group.                    it more expensive but enables it to provide   Ministry Secretary Mathar Niaz Rana from
         Carmichael rail network involves   24-hour electricity from the sun, which is   the Pakistan side and National Development
       construction of about 200 km of rail track   otherwise an intermittent energy source.   and Reform Commission Director General
       that will use some 26,417 tonnes of steel and   “[Suralaya] is already 35-years-old. We are   Ying Xiong from the Chinese side.
       319,000 sleepers.                   looking at whether it should be demolished   The meeting reviewed the progress of
         Analysts say that the renewed involvement   and replaced with a new utility-scale   projects in Gwadar. Both sides expressed
       of APSEZ in the Carmichael project could   solar farm, with batteries, so there’ll be no   satisfaction over the progress made in port
       raise significant environmental, social and   intermittency issue,” he told lawmakers at a   development and Chinese side appreciated
       governance red-flags for global investors.  public hearing in Jakarta.   the support provided by Pakistan in the port
         “The more Adani Ports increases its   The 3,400-megawatt Suralaya plant   operationalisation particularly enabling the
       exposure to the Carmichael coal, rail and port   comprises seven units that began operations   Afghan transit trade through Gwadar.
       business, the more climate risk is likely to be   between 1984 and 1997.   It was agreed that the step would
       priced into Adani Ports’ bonds, particularly as   The plant, owned by PT Indonesia Power,   reduce the logistic cost and facilitate the
       more globally significant financial institutions   a subsidiary of state-owned electricity giant   transshipment trade. The meeting was
       (GSFI) are specifically excluding thermal coal   PLN, is one of the biggest coal plants in   informed that the Eastbay Expressway will be
       exposures entirely,” the Institute for Energy   Southeast Asia.          completed in 2021 and all pending issues have
       Economics and Financial Analysis (IEEFA)   Suralaya is also the biggest among   been resolved on priority.
       wrote in a report published earlier this month.  5,655MW worth of other coal plants over   The expressway will connect the port with
                                           20-years-old that the energy ministry is   the 2nd phase of the free trade zone, which
                                           planning to replace with green plants in   will facilitate the business climate of the zone
                                           chasing Indonesia’s renewable energy targets.   and the port alike. Other projects discussed
       COAL-FIRED GENERATION                  Under prevailing regulations, Indonesia, a   included New Gwadar International Airport
                                           signatory to the landmark Paris Agreement,   and M-8 motorway for seamless connectivity
       Indonesia mulls retiring            targets to reach a 23 percent green energy   of Gwadar with the rest of the country and
                                           mix 2025, yet the country only reached 9.15
                                                                                beyond.
       giant Suralaya coal plant,          percent last year.                   industry in Gwadar and will improve the
                                                                                  The project upon completion will energise
                                              Many studies project that, at the current
       replacing it with solar farm        pace, Indonesia will miss the target.   social and economic well-being of the local
                                                                                community.
                                              Meanwhile, 17.5 percent of Indonesia’s
       The Indonesian government is considering to   power capacity should have been from green   Other projects in the social sector

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