Fight over Bali power plant illuminates energy dilemma
Over the last three years, fisherman Iputu Gede Astawa has watched his daily catch off the northern tip of Bali fall at an alarming rate.
Having swapped his paddle for an outboard motor in a futile effort to fish farther out to sea where the waters are more dangerous, Astawa blames a nearby coal power plant for harming his livelihood.
“My catch is totally different to what it was before the power plant began operating,” said the third-generation fisherman based near the port town of Singaraja. Where he and some 30 peers once caught 400 buckets of fish a day, they now net just 10.
Astawa is one of three local residents fighting a legal battle to stop the planned expansion of the Celukan Bawang power plant, 120 kilometres from the main tourism hub of Denpasar, which began operating in 2015.
“All the fishermen will be affected and we will lose our jobs, said Astawa, 43, who now makes furniture to get by.
The legal challenge, backed by Greenpeace, claims the planned expansion — which would more than double power capacity at the site — will be a setback to the fledgling tourism industry in the area. It warns of worsening air and water pollution, crop damage and a negative effect on wildlife at a nearby national park.
PT General Energy Bali runs the power plant, which is majority owned by China Huadian Corp. Neither would answer calls seeking comment.
Building additional coal or gas-fired power capacity at Celukan Bawang or elsewhere on Bali is needed to meet rising power demand, said Jisman Hutajulu, a senior official at the Indonesian energy ministry.
But the decision on whether to opt for more fossil fuel capacity or renewable energy is for local governments to make, he said, adding that energy security, the environment and cost should all be considered.
Central government policy on renewable energy has sought to encourage investment while keeping electricity prices affordable for consumers, he noted.
Like other Asian nations, Indonesia faces the challenge of expanding electricity access while meeting its pledge to cut climate-changing emissions under the Paris Agreement. Those targets can only be achieved by reducing reliance on coal power and ramping up investment in clean, renewable energy projects, power experts say.
Indonesia has 54.6 gigawatts of installed electricity capacity but to meet rising demand, especially on the main power-hungry islands of Java, Bali and Sumatra, it wants to more than double this over the next decade.
With huge coal resources, the archipelago relies heavily on coal-fired power stations to generate more than half of its power. Natural gas contributes about 23%, renewable energy 13% and diesel the rest.
But having committed to cutting greenhouse gas emissions by 29% by 2030 under the Paris accord, Jakarta wants renewable projects to provide almost a quarter of its power needs by 2025, and nearly a third by 2050.
With more than 17,000 islands scattered atop the volcanic Pacific Ring of Fire, power experts say Indonesia has plenty of options on renewable sources – especially geothermal.
The United States is the world’s biggest geothermal energy producer, but largely untapped Indonesia is second since the massive Sarulla geothermal power plant on Sumatra was expanded earlier this year.
Hydropower is another good renewable energy option for Indonesia, said Yuichiro Yoi, head of Indonesia infrastructure finance at the Asian Development Bank (ADB).
The Asahan hydroelectric power plant, which began operating in North Sumatra in 2011, has helped Indonesia reduce its reliance on fossil fuels, he added.
Solar, tidal and wind farms are also suitable for many parts of Indonesia, experts said.
Indonesia’s first wind power project — the 100-hectare Sidrap complx on Sulawesi — began operating earlier this year, and is a source of national pride.
There are also plans to build the world’s largest tidal power plant in East Flores.
Although a clean and abundant power source, geothermal resources in Indonesia are often located on or near protected forest areas, which can put off many financial backers.
One solution may be to exploit them on a smaller scale, said Almo Pradana, energy and climate manager at the World Resources Institute (WRI) Indonesia.
Similar to challenges facing other renewable projects, Indonesia’s complicated land ownership structures and land acquisition procedures can create further risks, said Yoi of the ADB.
New renewables plants also have to arrange power-purchase agreements with state-owned utilities and such discussions can lack transparency and lead to delays.
In addition, government legislation stipulates new renewable energy projects must provide electricity at a price about 15% cheaper than existing power plants in a province. As a result, renewables often cannot compete with coal.
The WRI is working with international corporations operating in Indonesia that have pledged to cut their emissions to try and force the government to change tack.
“If you don’t facilitate a company to switch to renewables, they will move to the Philippines or Vietnam where renewable energy regimes are more friendly,” Pradana said.
Back in northern Bali, Surayah, who goes by one name, is the only resident left on the cleared land that was once Pungkukan village, where 50 residents once lived.
All her neighbours have been paid to leave their homes over the last decade to make way for the planned expansion of Celukan Bawang. She too reached an agreement to sell, but it collapsed due to last-minute changes, she said.
Living alongside six family members, the 64-year-old is now adamant that she will not leave despite her family’s regular hospital trips to treat fevers and respiratory problems.
“I feel the coal power plant doesn’t care about me anymore,” said Surayah, whose on-grid house is more than three hours’ drive from the sprawl of hotels and restaurants in southern Bali that need the power from the plant. “I feel exhausted.”
“If you don’t facilitate a company to switch to renewables, they will move to the Philippines or Vietnam where renewable energy regimes are more friendly” ALMO PRADANA World Resources Institute