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Electricity Supply Business Plan 2021-2030     RUPTL Dissemination Presentation 2021-2030

Electricity Supply Business Plan 2019-2028

Electricity Supply Business Plan 2018-2027

Electricity Supply Business Plan 2017-2026

Electricity Supply Business Plan 2016-2025

Electricity Supply Business Plan 2015-2024

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Indonesia’s greener electricity supply business plan—2021 RUPTL

After a delay of more than a year, the Ministry of Energy and Mineral Resources released the 2021 electricity supply business plan (2021 RUPTL) in October 2021. The previous RUPTL was issued back in 2019, before the COVID-19 pandemic hit the world. The 2021 RUPTL signals Indonesia's first-ever shift from relying mostly on fossil fuel generation toward renewables.

The lower power demand growth projection is more aligned with the historical pre-pandemic performance. Perusahaan Listrik Negara (PLN) has lowered its power demand forecast owing to a decline in GDP growth by 1.25%, accounting for the COVID-19 impact and recovery time. Over the coming decade, the 2021 electricity supply business plan (RUPTL) projects an average annual power demand growth rate of 4.9% compared with 6.4% in the 2019 RUPTL.

The plan is to shift reliance away from fossil fuels, with larger renewable capacity additions planned. The 2021 RUPTL targets an addition of 21 GW of renewables, a 25% increase from the 2019 RUPTL. In contrast, fossil fuel generation capacity additions decline 50% to just under 20 GW. As a result, the share of capacity additions from renewables in the latest plan has increased from 30% to 52%, clearly indicating the intention to gradually shift away from the reliance on fossil fuels.

The renewables target is unlikely to be met owing to the country's reliance on traditional renewable sources and its unrealistic development timeline. The latest RUPTL plans for a 40-fold increase in solar capacity from the current level but has reduced the planned wind capacity additions by 40%. In contrast, hydropower and geothermal, which have been facing development challenges and delays, have their planned capacity additions relatively unchanged at about 14 GW. A total of 11 GW of renewable capacity is planned to come online by 2025 to meet the renewable generation target. However, IHS Markit has tracked only about 2 GW of capacity under construction, mostly from hydropower and geothermal.

Posted 22 October 2021 by Joo Yeow Lee , Associate Director, Gas, Power and Climate Solutions, S&P Global Commodity Insights

This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.

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INDONESIA: National Electricity Supply Business Plan (RUPTL) 2019-2028 (ESDM Decision No. 39 K/20/MEM/2019)

MENTERI ENERGI DAN SUMBER DAYA MINERAL

REPUBLIK INDONESIA

KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA MINERAL

NOMOR 39 K/20/MEM/2019

PENGESAHAN RENCANA USAHA PENYEDIAAN TENAGA LISTRIK

PT PERUSAHAAN LISTRIK NEGARA (PERSERO)

TAHUN 2019 SAMPAI DENGAN TAHUN 2028

DENGAN RAHMAT TUHAN YANG MAHA ESA

MENTERI ENERGI DAN SUMBER DAYA MINERAL REPUBLIK INDONESIA,

Menimbang : a. bahwa percepatan pembangunan infrastruktur

ketenagalistrikan termasuk pembangunan pembangkit

35.000 MW (tiga puluh lima ribu megawatt) dan

jaringan transmisi sepanjang 46.000 kms (empat

puluh enam ribu kilometer sirkuit) dilaksanakan oleh

PT Perusahaan Listrik Negara (Persero) sesuai dengan

Rencana Usaha Penyediaan Tenaga Listrik;

b. bahwa dalam pelaksanaan Rencana Usaha Penyediaan

Tenaga Listrik PT Perusahaan Listrik Negara (Persero)

Tahun 2018 s.d. 2027 terdapat dinamika pertumbuhan

kebutuhan tenaga listrik dan pembangunan

infrastruktur ketenagalistrikan, sehingga perlu

dilakukan perubahan terhadap lingkup dan kapasitas

pembangkit, pergeseran commercial operation date, dan

penambahan proyek baru;

c. bahwa sesuai dengan ketentuan Pasal 16 ayat (2)

Peraturan Pemerintah Nomor 14 Tahun 2012 tentang

Kegiatan Usaha Penyediaan Tenaga Listrik

sebagaimana telah diubah dengan Peraturan

Pemerintah Nomor 23 Tahun 2014 tentang Perubahan

atas Peraturan Pemerintah Nomor 14 Tahun 2012

tentang Kegiatan Usaha Penyediaan Tenaga Listrik,

perubahan Rencana Usaha Penyediaan Tenaga Listrik

disahkan oleh Menteri Energi dan Sumber Daya

d. bahwa berdasarkan pertimbangan sebagaimana

dimaksud dalam huruf a, huruf b, dan huruf c, perlu

menetapkan Keputusan Menteri Energi dan Sumber

Daya Mineral tentang Pengesahan Rencana Usaha

Penyediaan Tenaga Listrik PT Perusahaan Listrik

Negara (Persero) Tahun 2019 sampai dengan Tahun

Mengingat : 1. Undang-Undang Nomor 30 Tahun 2007 tentang Energi

(Lembaran Negara Republik Indonesia Tahun 2007

Nomor 96, Tambahan Lembaran Negara Republik

Indonesia Nomor 4746);

2. Undang-Undang Nomor 30 Tahun 2009 tentang

Ketenagalistrikan (Lembaran Negara Republik

Indonesia Tahun 2009 Nomor 133, Tambahan

Lembaran Negara Republik Indonesia Nomor 5052);

3. Peraturan Pemerintah Nomor 14 Tahun 2012 tentang

Kegiatan Usaha Penyediaan Tenaga Listrik (Lembaran

Negara Republik Indonesia Tahun 2012 Nomor 28,

Tambahan Lembaran Negara Republik Indonesia

Nomor 5281) sebagaimana telah diubah dengan

Peraturan Pemerintah Nomor 23 Tahun 2014 tentang

Perubahan atas Peraturan Pemerintah Nomor

14 Tahun 2012 tentang Kegiatan Usaha Penyediaan

Tenaga Listrik (Lembaran Negara Republik Indonesia

Tahun 2014 Nomor 75, Tambahan Lembaran Negara

Republik Indonesia Nomor 5530);

4. Peraturan Pemerintah Nomor 79 Tahun 2014 tentang

Kebijakan Energi Nasional (Lembaran Negara Republik

Indonesia Tahun 2014 Nomor 300, Tambahan

Lembaran Negara Republik Indonesia Nomor 5609);

5. Peraturan Presiden Nomor 68 Tahun 2015 tentang

Kementerian Energi dan Sumber Daya Mineral

(Lembaran Negara Republik Indonesia Tahun 2015

Nomor 132) sebagaimana telah diubah dengan

Peraturan Presiden Nomor 105 Tahun 2016 tentang

Perubahan atas Peraturan Presiden Nomor 68 Tahun

2015 tentEing Kementerian Energi dan Sumber Daya

Mineral (Lembaran Negara Republik Indonesia Tahun

2016 Nomor 289);

6. Peraturan Presiden Nomor 3 Tahun 2016 tentang

Percepatan Pelaksanaan Proyek Strategis Nasional

(Lembaran Negara Republik Indonesia Tahun 2016

Nomor 4) sebagaimana telah beberapa kali diubah

terakhir dengan Peraturan Presiden Nomor 56 Tahun

2018 tentang Perubahan Kedua atas Peraturan

Presiden Nomor 3 Tahun 2016 tentang Percepatan

Pelaksanaan Proyek Strategis Nasional (Lembaran

Negara Republik Indonesia Tahun 2018 Nomor 107);

7. Peraturan Presiden Nomor 4 Tahun 2016 tentang

Percepatan Pembangunan Infrastruktur

Indonesia Tahun 2016 Nomor 8) sebagaimana telah

diubah dengan Peraturan Presiden Nomor 14 Tahun

2017 tentang Perubahan atas Peraturan Presiden

Nomor 4 Tahun 2016 tentang Percepatan

Pembangunan Infrastruktur Ketenagalistrikan

(Lembaran Negara Republik Indonesia Tahun 2017

8. Peraturan Presiden Nomor 22 Tahun 2017 tentang

Rencana Umum Energi Nasional (Lembaran Negara

Republik Indonesia Tahun 2017 Nomor 43);

9. Peraturan Menteri Energi dan Sumber Daya Mineral

Nomor 13 Tahun 2016 tentang Organisasi dan Tata

Kerja Kementerian Energi dan Sumber Daya Mineral

(Berita Negara Republik Indonesia Tahun 2016 Nomor

10. Keputusan Menteri Energi dan Sumber Daya Mineral

Nomor 2628 K/21/MEM/2008 tanggal 13 November

2008 tentang Rencana Umum Ketenagalistrikan

Memperhatikan : Surat Direktur Utama PT Perusahaan Listrik Negara

(Persero) Nomor 4992/STH.00.01/DITREN/2018 tanggal 31

Desember 2018 dan Nomor 0568/STH.00.01/DIRUT/2019

tanggal 14 Februari 2019 hal Permohonan Pengesahan

RUPTL PT PLN (Persero) Tahun 2019 s.d. 2028;

MEMUTUSKAN:

KEPUTUSAN MENTERI ENERGI DAN SUMBER DAYA

MINERAL TENTANG PENGESAHAN RENCANA USAHA

PENYEDIAAN TENAGA LISTRIK PT PERUSAHAAN LISTRIK

NEGARA (PERSERO) TAHUN 2019 SAMPAI DENGAN

TAHUN 2028.

KESATU Mengesahkan Rencana Usaha Penyediaan Tenaga Listrik

PT Perusahaan Listrik Negara (Persero) Tahun 2019 sampai

dengan Tahun 2028 yang selanjutnya disebut RUPTL

PT PLN (Persero) Tahun 2019 s.d. Tahun 2028 dengan

rincian tercantum dalam Lampiran yang merupakan bagian

tidak terpisahkan dari Keputusan Menteri ini.

KEDUA RUPTL PT PLN (Persero) Tahun 2019 s.d. Tahun 2028

sebagaimana dimaksud dalam Diktum KESATU memuat

pokok-pokok sebagai berikut:

a. proyeksi rata-rata pertumbuhan kebutuhan tenaga

listrik sebesar 6,42% (enam koma empat dua persen);

b. total rencana pembangunan pembangkit sebesar

56.395 MW (lima puluh enam ribu tiga ratus sembilan

puluh lima megawatt);

c. target bauran energi pembangkitan mulai akhir tahun

2025, dengan rincian:

1. batubara sebesar 54,5% (lima puluh empat koma

enam persen);

2. energi bam dan energi terbamkan sebesar 23%

(dua puluh tiga persen);

3. gas bumi sebesar 22% (dua puluh dua persen); dan

4. bahan bakar minyak sebesar 0,4% (nol koma empat

d. total rencana pembangunan jaringan transmisi

sepanjang 57.293 kms (lima puluh tujuh ribu dua

ratus sembilan puluh tiga kilometer sirkuit);

e. total rencana pembangunan gardu induk sebesar

124.341 MVA (seratus dua puluh empat ribu tiga ratus

empat puluh satu mega volt ampere);

f. total rencana pembangunan jaringan distribusi

sepanjang 472.795 kms (empat ratus tujuh puluh dua

ribu tujuh ratus sembilan puluh lima kilometer

sirkuit); dan

g. total rencana pembangunan gardu distribusi sebesar

33.730 MVA (tiga puluh tiga ribu tujuh ratus tiga

puluh mega volt ampere).

KETIGA : PT Pemsahaan Listrik Negara (Persero) wajib

mengutamakan pembangunan pembangkit listrik yang

bersumber dari energi terbamkan, pembangkit listrik

tenaga uap mulut tambang, serta pembangkit listrik tenaga

gas, pembangkit listrik tenaga gas uap, atau pembangkit

listrik tenaga mesin gas di mulut sumur {wellhead)

sepanjang sumber energi dimaksud tersedia di Wilayah

Usaha yang dikembangkan dalam RUPTL PT PLN (Persero)

Tahun 2019 s.d. Tahun 2028 sebagaimana dimaksud dalam

Diktum KESATU.

KEEMPAT Dalam hal tertentu apabila diperlukan, Menteri Energi dan

Sumber Daya Mineral dapat memerintahkan kepada

FT Perusahaan Listrik Negara (Persero) untuk mengubah

RUPTL PT PLN (Persero) Tahun 2019 s.d. Tahun 2028 dan

menyampaikan perubahannya kepada Menteri Energi dan

Sumber Daya Mineral untuk memperoleh pengesahan.

KELIMA Untuk mendorong percepatan pencapaian target bauran

energi terbarukan, dapat dilakukan penambahan

pembangkit tenaga listrik yang bersumber dari energi

terbarukan di luar rincian sebagaimana dimaksud dalam

Diktum KESATU sesuai dengan kebutuhan sistem tenaga

listrik setempat.

KEENAM Untuk mendorong pengurangan emisi karbon dan

peningkatan pemanfaatan gas bumi di dalam negeri, dapat

dilakukan penambahan pembangkit tenaga listrik yang

bersumber dari gas bumi dengan kapasitas masing-masing

sampai dengan 10 MW (sepuluh megawatt) di luar rincian

sebagaimana dimaksud dalam Diktum KESATU sesuai

dengan kebutuhan sistem tenaga listrik setempat.

KETUJUH PT Perusahaan Listrik Negara (Persero) wajib

menyampaikan laporan perkembangan pelaksanaan RUPTL

PT PLN (Persero) Tahun 2019 s.d. Tahun 2028 secara

berkala setiap 4 (empat) bulan kepada Menteri Energi dan

Sumber Daya Mineral c.q. Direktur Jenderal

Ketenagalistrikan dan sewaktu-waktu apabila diperlukan.

KEDELAPAN Pada saat Keputusan Menteri ini mulai berlaku, Keputusan

Menteri Energi dan Sumber Daya Mineral Nomor 1567

K/21/MEM/2018 tanggal 13 Maret 2018 tentang

Pengesahaan Rencana Usaha Penyediaan Tenaga Listrik

PT Perusahaan Listrik Negara (Persero) Tahun 2018 s.d,

2027, dicabut dan dinyatakan tidak berlaku.

KESEMBILAN : Keputusan Menteri ini mulai berlaku pada tanggai

ditetapkan.

Ditetapkan di Jakarta

pada tanggai 20 Februari 2019

REPUBLIK INDONESIA,

IGNASIUS JONAN

1. Menteri Koordinator Bidang Kemaritiman

2. Menteri Koordinator Bidang Perekonomian

3. Menteri Dalam Negeri

4. Menteri Keuangan

5. Menteri Perencanaan Pembangunan Nasional/Kepala Bappenas

6. Menteri Badan Usaha Milik Negara

7. Sekretaris Jenderal, Kementerian Energi dan Sumber Daya Mineral

8. Inspektur Jenderal, Kementerian Energi dan Sumber Daya Mineral

9. Para Direktur Jenderal di lingkungan Kementerian Energi dan Sumber

Daya Mineral

10. Para Gubernur di seluruh Indonesia

11. Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas

12. Direktur Utama PT Perusahaan Listrik Negara (Persero)

Salinan sesuai dengan aslinya

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

BIRO HUKUM,

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• Indonesia: PLN's New 2021 - 2030 Business Plan - High hopes and 'greener' projects

Indonesia: PLN's New 2021 - 2030 Business Plan - High hopes and 'greener' projects

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The Minister of Energy and Mineral Resources has finally approved PLN's 2021-2030 Electricity Supply Business Plan ( RUPTL ). A copy of the RUPTL can be downloaded from PLN's website here .

This long-anticipated RUPTL marks a pivotal milestone for PLN. For the first time, the majority of power generation projects to be developed are renewable energy projects, accounting for 51.6% of 40,575 MW of power generation projects. The RUPTL also allocates a bigger share to Independent Power Producers ( IPP ) in developing power generation projects.

The new RUPTL also lays down, among other things, PLN's strategies to reduce the effects of greenhouse gases, and its target to achieve net zero emission by 2060, which is the policy adopted by the current administration in line with the UNFCCC's Paris Agreement.

Click here to access the full alert.

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2019-2028 RUPTL passed, govt and PLN to boost renewable energy

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Kontan Online - RUPTL 2019-2028 disahkan, pemerintah dan PLN genjot energi terbarukan

20 February 2019

By Ridwan Nanda Mulyana and Azis Husaini

Kontan.co.id – Jakarta. The government has passed the 2019 – 2028 Electricity Supply Business Plan (RUPTL). The RUPTL was passed by Energy and Mineral Resource (ESDM) Minister Ignatius Jonan through ESDM Minister Decision No. 39 K/20/MEM/2019, on Wednesday (20/2).

Jonan said in the electricity plan, the government alongside PT Perusahaan Listrik Negara (PLN) has prepared a move to increase New and Renewable Energy (NRE) shares in the power plant energy mix.

The move is to allow the construction of NRE power plants that has not been registered in the RUPTL to be carried out without having to wait for a RUPTL amendment. “As long as it can be integrated into the network system, it can be proposed to PLN. If [PLN] approves, it will be listed in the RUPTL next year,” said Jonan.

He said the move is aiming to push NRE development to be accelerated. In the RUPTL, the NRE is set to rise by around 1.8 Gigawatts (GW) from previously 14.9 GW to 16.7 GW.

It is meant to achieve the target of NRE mix of at least 23% in 2025. Until last year, the portion of NRE mix still stood at 13%. “The point is, we want to say that we support NRE power plants, we promote the use of renewables,” expressed Jonan.

Further, PLN Corporate Planning Director Syofvi Felienty Roekman mentioned the difference between the RUPTL for this period and the one of the previous period. The difference is if in the RUPTL for the last period the target of NRE mix is pegged at 23%, whereas in the 2019 – 2028 RUPTL, the target is raised to 23.2% after the year of 2025. “In the previous [RUPTL], it remains flat at 23%, now we raise it to 23.2% in 2026 until 2028,” said Syofvie.

For information, in the new RUPTL, there are some shifts in the energy mix target. For coal primary energy for example, the mix target which was previously set at 54.4% now increases to 54.6%. While for gas, the target drops from 22.2% to 22%. And for fuel oil, it remains at 0.4%.

Increasing the Consumption of Gas and Palm Oil

Nevertheless, in terms of volume, the government and PLN are planning to increase the consumption of domestic gas. While the use of fuel oil is being reduced by replacing it with biofuel such as crude palm oil (CPO).

To increase gas consumption, the government applies similar treatment as NRE power plants, that is to say the construction of gas-based power plant of up to 10 Megawatts (MW) which this year is not registered in the RUPLT can still be carried out, and will be recorded in the RUPTL next year. “We will push more domestic consumption of gas. This is also to reduce exhaust emissions, because the pollution is lower than coal,” explained Jonan.

However, even though gas consumption will be increased, Syofvi said that it does not necessarily raise the number of power plants. Because PLN only needs to increase the supply and absorption of gas from existing power plants. “So the [number of] power plants may be the same, we can just adjust the percentage [of gas supply and absorption],” he said.

Whereas to reduce fuel oil consumption, this year PLN will start shifting the energy supply from diesel power plants and gas engine power plants to CPO.

Eastern Java Regional Business Director who also acts as the Counsellor of New and Renewable Energy of PLN, Djoko Rahardjo Abumanan explained that this year four power plants will shift to using CPO.

The four power plants are Kanaan Diesel Power Plant in Bontang with a capacity of 10 MW, Batakan Diesel Power Plant in Balikpapan with a capacity of 40 MW, Supa Diesel Power Plant in Pare-pare with a capacity of 62 MW, and Jayapura Gas Engine Power Plant with a capacity of 10 MW. To supply the four power plants, around 190,000 kilolitres of CPO is needed per year.

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Indonesia – PLN’s 2017-2026 Electricity Supply Business Plan Issued.

April 11, 2017 by Conventus Law

11 April, 2017

The Minister of Energy and Mineral Resources has approved the 2017-2026 Electricity Supply Business Plan (RUPTL) of the national power utility, PT PLN (Persero). A copy of the RUTPL can be downloaded from the website of the Directorate General of Electricity  here .

Why is the RUPTL important to IPP developers?

The RUPTL in essence represents PLN's plan to procure electricity from private Independent Power Producers (IPPs). Over the last decade, the RUPTL has evolved from a loose guideline as to which locations PLN may wish to see IPPs developed in, to a rulebook essentially requiring PLN to contract with IPPs whose projects appear on the RUPTL.

Further, in order for IPP projects to gain the benefits of the government guarantee program introduced under Presidential Regulation 4/2016 on Acceleration of Power Infrastructure Development, the relevant project must be listed on the RUPTL.

What are the key themes in the new RUPTL?

Some of the key element of the new RUPTL are:

• For areas rich in coal and natural gas resources, PLN is prioritizing the development of mine mouth and wellhead power projects respectively
• PLN intends to satisfy peak demand from gas fired power plants (LNG, mini LNG and CNG) as well as hydro peaking plants (including pumped storage)
• Mobile power plants (MPP) are to be deployed to deal with short-term shortages of power in various locations, particularly Sulawesi and eastern Indonesia
• For the Java-Bali system, PLN will implement 1,000MW class ultra super critical (USC) coal fired technologies, and will promote gas fired power plants as mid and peak load solutions (see Annex 1)
• For the Sumatera, PLN intends to gradually implement 600MW class USC coal fired plants, depending on the readiness of the grid system
• The previous Sumsel 9 (1200MW) and Sumsel 10 (600MW) mine mouth power projects have been removed from the RUPTL
• A number of the coal fired power projects in Sumatera (e.g. Jambi) and Kalimantan (e.g Kaltim 3, Kaltim 6, Kalselteng 3) have been converted from "pass-through" coal fired IPPs (where the price of coal was a pass-through to PLN) to mine mouth IPPs (where the IPP is responsible for securing long term coal supply under mine mouth supply contracts); and
• The total allocated renewable energy IPP capacity over the next 10 years totals approx. 12GW, largely comprised of 4.4GW of geothermal, 4.6GW of hydro and 1.65GW of mini hydro

The issuance of the new RUPTL now empowers PLN to continue to push out its bid documents for the development of new projects, and accordingly we are hopeful of seeing a great deal of activity around new greenfield IPPs over the coming few months.

To enlarge, please click on the table.

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JETP: a reflection of Indonesia’s commitment to transform its power sector

More specifics are needed for Indonesia to speed up coal retirement, make space for renewables and align with 1.5C.

Dr Achmed Shahram Edianto

Asia Electricity Analyst

26 January 2023 | 6 min read

Available in:  Indonesia

Indonesia’s JETP requires the country to cap its power sector emissions at 290 million tonnes in 2030, but more specific requirements are needed to speed up coal retirement and make space for renewables.

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Detailed road map is needed for coal-fired power plants retirement

JETP emphasises on freezing the existing pipeline of planned on-grid coal-fired power plants included in the national Electricity Supply Business Plan 2021-2030 (RUPTL). However, it has no requirements to stop coal plants under construction in both the power sector and the captive plants.

JETP emissions cap for the power sector is not aligned with 1.5C

The JETP emissions cap of 290 million tonnes CO2 is broadly consistent with the Announced Pledge Scenario analysed in a recent IEA report which aligned with the government’s target to achieve Net Zero Emissions for all sectors by 2060, not 1.5C pathway.

Coal generation needs to decrease substantially by 2030

To put the country on track for 1.5C, coal generation needs to decrease substantially by 2030, through closing some operating coal plants and significantly reducing coal power  generation and rapidly deploying renewable energy.

Indonesia needs to align with the global 1.5C climate target

Indonesia should leverage the momentum and financial support from JETP to help the country reconfigure its transition pathway to align with the global 1.5C climate target.

The JETP should be detailed further to include any possible scenarios for the country. This deal should also include options of any possible early retirement and lower down the average capacity factor of operating coal-fired power plants, plus a target to accelerate renewable energy uptakes, to demonstrate that international support could significantly help the country to reroute its transition pathway towards the 1.5C target. Dr Achmed Shahram Edianto Asia electricity analyst, Ember

At the G20 meeting in November, Indonesia secured the Just Energy Transition Partnership (JETP) deal of USD 20 billion to fund the country’s energy transition efforts. Led by the United States and Japan, developed countries agreed to help Indonesia achieve Net Zero Emissions by accelerating the development of renewable energy, fast-tracking the retirement of coal-fired power plants and helping the communities affected by the transition, especially in the coal sector. 

As part of this agreement, Indonesia is required to cap its power sector emission at 290 million tonnes (Mt) in 2030. The agreement also emphasises to freeze the existing pipeline of planned on-grid coal-fired power plants included in the national Electricity Supply Business Plan 2021-2030 (also known as RUPTL), reaffirming a full moratorium on any new on-grid coal power generation capacity in accordance with Presidential Regulation on Renewable Energy Number 112/2022 and accelerating the deployment of renewable energy to reach at least 34% of total generation by 2030. 

However, there are no specific requirements in the deal to address the under construction on-grid coal power generation. So, how did this agreement come with a 290 Mt emissions cap? What does this mean for coal power in Indonesia and what are the implications for climate targets?

Unpacking the emissions cap requirement

The JETP emissions cap of 290 Mt CO2 is broadly consistent with the Announced Pledge Scenario analysed in a recent IEA report – An Energy Sector Roadmap to Net Zero Emissions in Indonesia – which aligns with government’s target to achieve Net Zero Emissions for all sectors by 2060. 

In this scenario, the coal fleet is expected to grow from 35 GW in 2021 to approximately 45 GW by 2030. This includes 14 GW of coal currently under construction that will come online between 2021 to 2030, resulting in a total of almost 50 GW coal-fired power plants in 2030. The discrepancy comes from the assumption to retire around 5 GW of coal capacity between 2021 to 2030. 

Furthermore, although JETP also states that Indonesia needs to restrict the development of captive coal-fired power plants and to find and implement potential zero emissions and renewable solutions for power generation facilities outside Jawa-Bali, including captive power facilities, the restriction is in accordance with the Presidential Regulation mentioned above.

It means, the government still allows captive coal power plants to be built as long as it is integrated with industries that increase the added value of natural resources or are included in Indonesia’s National Strategic Projects with major contributions to job creation and national economic growth.

To date, Indonesia has a total of 5 GW of captive coal power operating in 2021, with 4 GW under construction, according to the Global Energy Monitor . These coal plants do not appear to be included in the 290 Mt emissions cap and have no specific restriction in the JETP agreement.

If this assumption is correct, this means JETP Indonesia has no special requirements for stopping coal plants in the electricity sector beyond what has been planned by the government, as well as any requirements for captive power plants. In other words, JETP still allows the highest emitting energy source – coal power – to grow in the next few years.

Can JETP bring Indonesia's power sector closer to 1.5C?

Developing countries expect JETP to help them accelerate the just transition process. Alongside this expectation, they also need support to align their national targets with the global target to limit temperature rise to 1.5C.

However, in Indonesia, the objective is to help the country achieve its net zero emissions target for all sectors by 2060, where the power sector is expected to achieve this target by 2050.

To be compliant with 1.5C, the power sector should in fact achieve net zero emissions by 2040. Furthermore, coal emissions need to be significantly reduced by 2030.

But the questions remain, is it possible to align with the 1.5C? Most importantly, what are the additional actions required to put the power sector on track for 1.5C?

Achieving the 1.5C target

It is technically possible to align Indonesia’s energy transition target with 1.5C, particularly in the power sector. To do this, the IEA scenario recommends that all new unabated coal-fired power plant projects must be completed by 2024, and several plants that are part of the active pipeline should be cancelled. Coal fleet needs to be reduced by 10% and the generation of operating coal-fired power plants in 2030 should decline by 70%, compared to the JETP scenario.

It means, in terms of capacity, Indonesia should retire around 9 GW of its coal fleet by 2030, since there are still new projects coming online between now and 2030. In the long term, unabated coal generation will only fall 8% from 2021 to 2040 (from around 190 TWh to 175 TWh) in the JETP scenario, whereas it needs to fall nearly 100% for 1.5C.

Meanwhile, analysis by the University of Maryland and the Institute for Essential Services Reform (IESR) shows that Indonesia should retire around 9.2 GW of its coal fleet by 2030, close to the 1.5C pathway from IEA.

To put the country on track for 1.5, coal generation needs to decrease substantially by 2030, through closing some operating coal plants and significantly reducing coal power generation.

In addition, the share of renewables should increase significantly to replace coal power generation. The IEA suggested that this share should reach about 60% of the total generation in 2030, around 25 percentage points higher than required by JETP and the IEA Announced Pledge Scenario.

The benefits of 1.5C-aligned pathways

The above studies also highlighted the benefits of Indonesia moving towards the 1.5C target. The IEA’s net zero emissions scenario shows that although the costs of the energy system are higher in 2030 compared to costs in the announced pledge scenario, investment requirements will fall in the longer term while consumer cost savings will also increase.

By 2050, the costs of the entire energy system will be cheaper under the net zero emissions scenario than other scenarios. Additionally, Indonesia’s power sector will be 100% clean by 2040, which in turn will accelerate net zero targets of all other sectors by 2050, 10 years ahead of the government’s deadline.

The University of Maryland and IESR also cites that accelerating the transition from coal to clean energy, in line with 1.5C, will be economically and socially beneficial. The benefits obtained from shifting coal subsidies and avoiding negative health impacts from coal are two to four times greater than the costs of stranded assets, decommissioning of coal-fired power plants, employment transition costs and loss of government revenue from the coal sector.

Expecting more advanced pathways for Indonesia

The IEA’s Announced Pledge Scenario provides sufficient information to understand the JETP emissions cap requirement for Indonesia’s power sector. However, this scenario is in line with net zero emissions in the power sector by 2050, which is not 1.5C compliant.

The government should consider three recommendations for ongoing JETP discussions to mitigate worsening impacts of the climate crisis by stringent emissions measures and offer more advanced pathways for Indonesia’s energy transition. 

First, JETP emissions cap means no new coal other than those under construction. If any plants currently in development – but not under construction – also enter operation by 2030, this will add 7 GW of coal fleet, which equals to around 38 Mt CO2. To meet the emissions cap, this will need to be compensated by retiring more existing plants (beyond the 5 GW) or lowering average running hours of the operational coal fleet, or both. Furthermore, rapid deployment of renewable energy is needed to substitute coal power generation in the system.

Second, JETP should clearly define the power sector emissions cap. As part of coal phasedown, addressing coal power in the energy transition is not limited to the power sector. Gaps in dealing with captive coal power should also be considered an additional threat to Indonesia. The total emissions from existing and under construction captive coal could reach almost 50 Mt CO2 in 2030, 17% of the power sector emissions cap. 

JETP does limit the power sector emissions and stated the restriction of captive coal power plants. However, this deal did not impose any captive coal emissions requirements. Therefore, an additional  requirement to reduce captive coal emissions should be in place, as part of the deal.

Lastly, leveraging financial support is the key to accelerating energy transition. As mentioned by the Minister of Finance at COP 26, Indonesia could put forward the target to fully phase out coal-fired power plants by 2040 , aligned with 1.5C, if sufficient financial support from international communities were available. With JETP now on the table, the country should put its climate-aligned commitment into measurable actions, showing that Indonesia’s energy transition could move faster and align with the global climate target of 1.5C.

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Sidrap Wind Farm in Sidenreng Rappang, South Sulawesi, Indonesia

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The Electricity Supply Business Plan for 2016-2025 of the Indonesian state-owned power utility firm, PT PLN (Persero), has been issued and approved by the Minister of Energy and Mineral Resources through Decree No. 5899K/20/MEM/2016. The RUPTL can be accessed here .

The purpose of the RUPTL is to serve as guidance for the future development of power infrastructure in the country to meet increasing demand. Over the years, the RUPTL has transitioned from a generation build-out plan that bore no real resemblance to the projects that were actually being promoted and developed across the country, to now a document which very much guides PLN’s decision making on which projects to proceed with. A number of the recent regulations issued, including Presidential Regulation No. 4/2016 on Acceleration of Power Infrastructure Development, require that a particular project be listed on the RUPTL in order to qualify for various incentives and facilities, including, in the case of that Presidential Regulation, the provision of government guarantees.

The 2016-2025 RUPTL – in line with Presidential Regulation No. 4/2016 –sets out a number of key principles which are driving PLN’s procurement of power from private sector Independent Power Producers, taking into account the significant financing requirements, high construction risk and fuel supply risk for the projects. In addition to PLN relying on traditional IPP schemes to involve the private sector in power generation projects, PLN plans to boost the involvement of the private sector through power wheeling, excess power purchases and captive power plant schemes.

One of the key aims of the new RUPTL is for PLN to achieve a healthy reserve margin. PLN is in fact aiming to have a very significant reserve margin in the early years of the plan to anticipate potential delays in power plant construction. This quick addition of capacity is intended to be achieved through, among other things, upsizing projects considering the low success rate that PLN has experienced in having private developers implement smaller scale steam power plant IPPs (50MW or less) in the last five years. For short term power deficit needs, PLN will develop mobile power plants with gas fuel and dual fuel technology in order to reduce dependency on diesel power plant rentals.

For the Java-Bali system, PLN will be focusing on large (1,000MW) ultra-super critical coal fired projects (clean coal technology) to meet Java’s significant base load requirements. PLN also plans to develop coal fired projects with same ultra-super critical technology but with a lower capacity class in the Sumatra system (class 600MW), and in the Kalimantan and Sulawesi systems (class 200MW).

The RUPTL sets out a target of adding 80.5GW of new capacity over the next 10 years. Out of that total, PLN intends to build 18GW, IPPs have been allocated 45.5GW, and there remains approximately 20GW yet to be allocated.

Thermal power generation continues to represent the largest share of the future planned generation, with 25GW of coal fired projects being allocated to IPPs, and 6GW being allocated to gas fired projects.

On the renewables front, the RUPTL sets out some aggressive plans which are designed to meet the Government’s revised renewable energy target of 23% by 2025. For solar energy, the RUPTL states that there is a plan to develop 5,000MW by 2025. However, little of that capacity has actually been expressly allocated as of yet. 100MW has been slated for the Java-Bali grid, 70MW in Sulawesi, 70MW in East Nusa Tenggara, 25MW in Maluku and 40MW in Papua. A similar story applies for wind projects – with 330MW planned for the Java-Bali grid, 70MW in Sulawesi, 70MW in East Nusa Tenggara, 25MW in the Maluku and 40MW in Papua.

For geothermal projects, there is approximately 5GW of new capacity allocated to IPPs, with a further 6.1GW yet to be allocated.

Hydro represents the largest renewable opportunity, with 5.5GW allocated, and a further 9.1GW yet to be allocated.

It is hoped that the issuance of this RUPTL will further expedite the development of much-needed new power generation projects throughout the country.

Hadiputranto, Hadinoto & Partners, Member of Baker & McKenzie International - 21st june 2016

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Indonesia Snapshot

Capital: Jakarta Population: 259 million (2016) Currency: Indonesian Rupiah Nominal GDP: $936 billion USD (IMF, 2016) GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016) GDP Growth: 5.0% (2016) External Debt: 36.80% of GDP (BI, Q2 2016) Ease of Doing Business: 91/190 (WB, 2017) Corruption Index: 90/176 (TI, 2016)

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Electricity Supply Business Plan (Rencana Umum Penyediaan Tenaga Listrik – “RUPTL”) 2016-2025

The 2016-2025 Electricity Supply Plan (Rencana Umum Penyediaan Tenaga Listrik – “RUPTL”) has been set up by the Ministry of Energy and Mineral Reousrces (MEMR) addresses demand forecasts, future expansion plans and electricity production forecasts, fuel requirements, etc.

Targets include a Fast Track Programme in terms of 35GW additional capacity between 2015 and 2019:

• RUPTL to install 80.5 GW total additional capacity between 2015 and 2025. 18.2GW will be constructed by State Electricity Company (PLN), 45.7GW by Independent Power Producers (IPPs) and 16.6 GW stays un-allocated. 
• The RUPTL also plans for the 23% share from renewables (including Hydro, Geothermal and Solar resources) as set out by the 2014 National Energy Policy (NEP).

Indonesia plans to expand its generation capacity by 45% over the next decade. The private sector will contribute 57% of the total new capacity.

Planned power mix for 45.7GW allocated to IPPs is:

• Coal: 25.2GW
• Hydro: 6.8GW
• Geothermal: 5.1GW
• Others: 1.9GW

The unallocated 16.6GW has the following power mix:

• Coal: 1.7GW
• Geothermal: 0.7GW
• Solar: 2.9GW

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DNV and Indonesia's PLN Will Collaborate on Power Grid Resilience

• Apr 22, 2024 Apr 22, 2024 4:07 am GMT

By: Targeted News Service

BURLINGTON, Massachusetts , April 19 -- DNV, a provider of classification, technical assurance, software and independent expert advisory services, issued the following news:

DNV has signed a Memorandum of Understanding (MoU) with electricity engineering consultancy PT PLN Engineering (PLNE), a subsidiary of Indonesia's state-owned power distribution company PT PLN ( Persero ) (PLN).

- A new DNV/PLN Memorandum of Understanding has been signed to cooperate on designing power-grid management systems for disaster recovery control in Indonesia

- The agreement supports PLN's transformation strategy to become a technology and engineering leader.

- DNV brings in its extensive local and international experience of over 100 years in technical advisory work for power grid systems.

The two-year MoU signed recently in Indonesia's capital Jakarta is intended as a cooperation plan in Scada/EMS design for disaster recovery control systems at PLN. Scada (supervisory control and data acquisition) and EMS (energy management systems) enable reliable, efficient, safe operation of equipment in the smart power grids and microgrids essential for helping Indonesia towards its energy decarbonization ambitions.

The country, a major coal exporter in Southeast Asia , plans to phase out coal by 2055 and achieve net-zero carbon emissions by 2060. However, it has struggled to find support for its phase-out plan, DNV's Energy Transition Outlook 2023 notes.

Integrating power from renewables such as solar, wind, hydropower and geothermal into grids adds complexity to managing grid stability. Larger distributed generation and sensor network systems mean that more data than ever before needs to be managed for the network to run effectively. This makes Scada/EMS even more important for maintaining balanced power flows throughout the generation, transmission, and distribution chain.

The MoU expresses the parties' mutual intentions to explore cooperation involving joint utilization of resources, joint marketing, and joint business development. An additional goal is to build the capacity of PLN-E's employees through programmes including workshops locally and/or overseas.

Collaboration essential for the grid's role in clean energy

Brice Le Gallo , Vice President and Regional Director APAC, Energy Systems at DNV. "It stems from PLN-E's vision to become a technology and engineering leader. Innovation and partnering with other technology leaders like DNV is part of PLN-E's transformation strategy to achieve that vision. To unleash the potential of clean energy, investing in power grids is as important as investing in renewables developments, and collaboration is essential if smart grids are to maximize their potential to decarbonize energy systems."

Original text here: https://www.dnv.com/news/dnv-and-indonesias-pln-will-collaborate-on-power-grid-resilience/

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Apple CEO says company will ‘look at’ manufacturing in Indonesia

Apple CEO Tim Cook gestures upon the arrival for a meeting with Indonesian President Joko Widodo at palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

Apple CEO Tim Cook arrives for a meeting with Indonesian President Joko Widodo at the palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

Apple CEO Tim Cook ,center, talks to journalist during a joint press conference with Indonesian Minister of Industry Agus Gumiwang Kartasasmita, left, and Indonesian Minister of Communication and Information Technology Budi Arie Setiadi, right, after a meeting with Indonesian President Joko Widodo at the palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

Apple CEO Tim Cook walks after a meeting with Indonesian President Joko Widodo at the palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

Apple CEO Tim Cook, center, walks with Indonesia’s Minister of industry Agus Gumiwang Kartasasmita, right, and Minister of Communication and Information Technology Budi Arie Setiadi, left, after a meeting with President Joko Widodo at the palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

Apple CEO Tim Cook, right, walks with Indonesia’s Minister of Communication and Information Technology Budi Arie Setiadi, left, after a meeting with President Joko Widodo at the palace in Jakarta, Indonesia, Wednesday, April 17, 2024.(AP Photo/Achmad Ibrahim)

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JAKARTA, Indonesia (AP) — Apple CEO Tim Cook said the company will “look at” manufacturing in Indonesia as he met with Indonesian President Joko Widodo on Wednesday.

“We talked about the president’s desire to see manufacturing in the country, and it’s something that we will look at,” Cook told reporters after the meeting.

Widodo’s administration has worked for years to bring manufacturing to the country to power economic development, while Apple is seeking to diversify its supply chains away from China, where most of its smartphones and tablets are assembled.

The company began moving some production to countries like Vietnam, and more recently India , after shutdowns to fight COVID-19 in China repeatedly disrupted the company’s shipments .

“I think the investment ability in Indonesia is endless. I think that, there is a lot of great places to invest, and we’re investing. We believe in the country,” Cook said.

The previous day, Cook met Vietnamese Prime Minister Pham Minh Chinh in Hanoi, where he said Apple plans to invest more in Vietnam and increase spending on suppliers in the Southeast Asian manufacturing hub.

“Given the slowing Chinese economy as well as the Chinese government’s ongoing efforts to squeeze out foreign companies and replace them with domestic brands, Apple wants alternatives for manufacturing,” said Chris Miller, an associate professor at Tufts University whose work focuses on technology and geopolitics.

“It has already invested more in India and Vietnam, but it is likely looking at other partners in South East Asia to additional manufacturing and assembly operations,” Miller said.

Cook’s visit to Indonesia came after Apple announced its fourth Apple Developer Academy in the country, to be located in Bali. The company first launched the program to train app developers in Indonesia in 2018, in the capital Jakarta.

Apple has no manufacturing facilities in Indonesia, but the company says it has invested 1.6 trillion rupiah ($99 million) in its app developer ecosystem in the country.

Widodo’s government has sought to leverage the country’s reserves of nickel and other raw materials to bring in manufacturing, banning export of raw commodities such as nickel and bauxite to oblige companies to build refineries domestically.

After the meeting with Widodo, Cook also met Indonesia’s president-elect Prabowo Subianto, who is currently defense minister, in Jakarta. He’s set to take power in October.

Indonesia’s minister of communication and information, Budi Arie Setiadi, said Wednesday that Microsoft CEO Satya Nadella would visit Indonesia at the end of April. ___

Associated Press writers Victoria Milko in Jakarta and Zen Soo in Hong Kong contributed to this report.

Internet data centers are fueling drive to old power source: Coal

CHARLES TOWN, W.Va. — A helicopter hovers over the Gee family farm, the noisy rattle echoing inside their home in this rural part of West Virginia. It’s holding surveyors who are eyeing space for yet another power line next to the property — a line that will take electricity generated from coal plants in the state to address a drain on power driven by the world’s internet hub in Northern Virginia 35 miles away.

There, massive data centers with computers processing nearly 70 percent of global digital traffic are gobbling up electricity at a rate officials overseeing the power grid say is unsustainable unless two things happen: Several hundred miles of new transmission lines must be built, slicing through neighborhoods and farms in Virginia and three neighboring states. And antiquated coal-powered electricity plants that had been scheduled to go offline will need to keep running to fuel the increasing need for more power, undermining clean energy goals.

“It’s not right,” said Mary Gee, whose property already abuts two power lines that serve as conduits for electricity flowing toward the biggest concentration of data centers — in Loudoun County, home to what’s known as Data Center Alley. “These power lines? They’re not for me and my family. I didn’t vote on this. And the data centers? That’s not in West Virginia. That’s a whole different state.”

The $5.2 billion effort has fueled a backlash against data centers through the region, prompting officials in Virginia to begin studying the deeper impacts of an industry they’ve long cultivated for the hundreds of millions of dollars in tax revenue it brings to their communities.

Critics say it will force residents near the coal plants to continue living with toxic pollution, ironically to help a state — Virginia — that has fully embraced clean energy. And utility ratepayers in the affected areas will be forced to pay for the plan in the form of higher bills, those critics say.

But PJM Interconnection, the regional grid operator, says the plan is necessary to maintain grid reliability amid a wave of fossil fuel plant closures in recent years, prompted by the nation’s transition to cleaner power.

Transmission

line proposal

Expand lines along existing right of way

Rebuild lines along existing right of way

Expand lines along

existing right of way

Rebuild lines along

Transmission line proposal

New transmission line

First Energy

502 Junction Substation

PENNSYLVANIA

Fort Martin power station

power plant

Brandon Shores

Harrisonburg

Fredericksburg

Charlottesville

Longview power plant

Fort Martin

Expand along existing right of way

Rebuild along existing right of way

Build new line

Detail below

Harrison power plant

502 Junction

Power lines will be built across four states in a $5.2 billion effort that, relying on coal plants that were meant to be shuttered, is designed to keep the electric grid from failing amid spiking energy demands.

Harpers Ferry

transmission

Poolesville

Purcellville

High density of

data center

Int’l

Centreville

Gainesville

Cutting through farms and neighborhoods, the plan converges on Northern Virginia, where a growing data center industry will need enough extra energy to power 6 million homes by 2030.

With not enough of those green energy facilities connected to the grid yet, enough coal and natural gas energy to power 32 million homes is expected to be lost by 2030 at a time when the demand from the growing data center industry, electric vehicles and other new technology is on the rise, PJM says.

“The system is in a major transition right now, and it’s going to continue to evolve,” Ken Seiler, PJM’s senior vice president in charge of planning, said in a December stakeholders’ meeting about the effort to buy time for green energy to catch up. “And we’ll look for opportunities to do everything we can to keep the lights on as it goes through this transition.”

A need for power

Data centers that house thousands of computer servers and the cooling equipment needed for them to run have been multiplying in Northern Virginia since the late 1990s, spreading from the industry’s historic base in Loudoun County to neighboring Prince William County and, recently, across the Potomac River into Maryland. There are nearly 300 data centers now in Virginia.

With Amazon Web Services pursuing a $35 billion data center expansion in Virginia, rural portions of the state are the industry’s newest target for development.

The growth means big revenue for the localities that host the football-field-size buildings. Loudoun collects $600 million in annual taxes on the computer equipment inside the buildings, making it easier to fund schools and other services. Prince William, the second-largest market, collects $100 million per year.

But data centers also consume massive amounts of energy.

One data center can require 50 times the electricity of a typical office building, according to the U.S. Department of Energy. Multiple-building data center complexes, which have become the norm, require as much as 14 to 20 times that amount.

The demand has strained utility companies, to the point where Dominion Energy in Virginia briefly warned in 2022 that it may not be able to keep up with the pace of the industry’s growth.

The utility — which has since accelerated plans for new power lines and substations to boost its electrical output — predicts that by 2035 the industry in Virginia will require 11,000 megawatts, nearly quadruple what it needed in 2022, or enough to power 8.8 million homes.

The smaller Northern Virginia Electric Cooperative recently told PJM that the more than 50 data centers it serves account for 59 percent of its energy demand. It expects to need to serve about 110 more data centers by July 2028.

Meanwhile, the amount of energy available is not growing quickly enough to meet that future demand. Coal plants have scaled down production or shut down altogether as the market transitions to green energy, hastened by laws in Maryland and Virginia mandating net-zero greenhouse gas emissions by 2045 and, for several other states in the region, by 2050.

Dominion is developing a 2,600-megawatt wind farm off Virginia Beach — the largest such project in U.S. waters — and the company recently gained state approval to build four solar projects.

But those projects won’t be ready in time to absorb the projected gap in available energy. Opponents of PJM’s plan say it wouldn’t be necessary if more green energy had been connected to the grid faster, pointing to projects that were caught up in bureaucratic delays for five years or longer before they were connected.

A PJM spokesperson said the organization has recently sped up its approval process and is encouraging utility companies and federal and state officials to better incorporate renewable energy.

About 40,000 megawatts of green energy projects have been cleared for construction but are not being built because of issues related to financing or siting, the PJM spokesperson said.

Once more renewable energy is available, some of the power lines being built to address the energy gap may no longer be needed as the coal plants ultimately shut down, clean energy advocates say — though utility companies contend the extra capacity brought by the lines will always be useful.

“Their planning is just about maintaining the status quo,” Tom Rutigliano, a senior advocate for clean energy at the Natural Resources Defense Council, said about PJM. “They do nothing proactive about really trying to get a handle on the future and get ready for it.”

‘Holding on tight’ to coal

The smoke from two coal plants near West Virginia’s border with Pennsylvania billows over the city of Morgantown, adding a brownish tint to the air.

Nearby sits the 502 Junction substation, connected to those plants and a third one about 43 miles away via existing power lines, which will serve as a terminus for a western prong of the PJM plan for new lines that will extend to another substation in Frederick, Md., then south into Northern Virginia.

The owner of one of the Morgantown-area plants, Longview LLC, recently emerged from bankruptcy. After a restructuring, the facility is fully functioning, utilizing a solar farm to supplement its coal energy output.

The other two plants belong to the Ohio-based FirstEnergy Corp. utility, which had plans to significantly scale down operations there to meet a company goal of reducing its greenhouse gas emissions by nearly a third over the next six years.

The FirstEnergy plants are among the state’s worst polluters, said Jim Kotcon, a West Virginia University plant pathology professor who oversees conservation efforts at the Sierra Club’s West Virginia chapter.

The Harrison plant pumped out a combined 12 million tons of coal pollutants like sulfur and nitrous oxides in 2023, more than any other fossil fuel plant in the state, according to Environmental Protection Agency data. The Fort Martin plant, which has been operating since the late 1960s, emitted the state’s highest levels of nitrous oxides in 2023, at 5,240 tons.

After PJM tapped the company to build a 36-mile-long portion of the planned power lines for $392 million, FirstEnergy announced in February that the company is abandoning a 2030 goal to significantly cut greenhouse gas emissions because the two plants are crucial to maintaining grid reliability.

The news has sent FirstEnergy’s stock price up by 4 percent, to about $37 a share this week, and was greeted with jubilation by West Virginia’s coal industry.

“We welcome this, without question, because it will increase the life of these plants and hundreds of thousands of mining jobs,” said Chris Hamilton, president of the West Virginia Coal Association. “We’re holding on tight to our coal plants.”

Since 2008, annual coal production in West Virginia has dipped by nearly half, to about 82 million tons, though the industry — which contributes about $5.5 billion to the state’s economy — has rebounded some due to an export market to Europe and Asia, Hamilton said.

Hamilton said his association will lobby hard for FirstEnergy’s portion of the PJM plan to gain state approval. The company said it will submit its application for its power line routes in mid-2025.

More than 200 miles to the east in Maryland, environmental groups and ratepayer advocates are fighting an effort by PJM to extend the life of two more coal plants — Brandon Shores and Herbert A. Wagner — just outside of Baltimore, which were slated to close by June 2025.

PJM asked the plants’ owner, Texas-based Talen Energy Corp., to keep them running through 2028 — with the yet-to-be determined cost of doing so passed on to ratepayers.

That would mean amending a 2018 federal court consent decree, in which Talen agreed to stop burning coal to settle a lawsuit brought by the Sierra Club over Clean Water Act violations. The Sierra Club has rejected PJM’s calls to do so.

“We need a proactive plan that is consistent with the state’s clean energy goals,” said Josh Tulkin, director of the Sierra Club’s Maryland chapter, which has proposed an alternative plan to build a battery storage facility at the Brandon Shores site that would cut the time needed for the plants to operate.

A PJM spokesperson said the organization believes that such a facility wouldn’t provide enough reliable power and is not ruling out seeking a federal emergency order to keep the coal plants running.

With the matter still unresolved, nearby residents say they are anxious to see them closed.

“It’s been really challenging,” said John Garofolo, who lives in the Stoney Beach neighborhood community of townhouses and condominiums, where coal dust drifts into the neighborhood pool when the facilities are running. “We’re concerned about the air we’re breathing here.”

Sounding alarms

Keryn Newman, a Charles Town activist, has been sounding alarms in the small neighborhoods and farm communities along the path of the proposed power lines in West Virginia.

Newman, who in the late 2000s waged a successful campaign to stop a plan for a 765-kilovolt line extending through the area into Maryland before the data center boom, sees the battle in terms of the more affordable, quieter lifestyle she and her neighbors cherish.

Because FirstEnergy prohibits any structure from interfering with a power line, building a new line along the right of way — which would be expanded to make room for the third line — would mean altering the character of residents’ properties, Newman said.

“It gobbles up space for play equipment for your kid, a pool or a barn,” she said. “And a well or septic system can’t be in the right of way.”

A FirstEnergy spokesperson said the company would compensate property owners for any land needed, with eminent domain proceedings a last resort if those property owners are unwilling to sell.

Some have accepted that more power lines will come through and seem open to selling to FirstEnergy and moving away.

Pam and Gary Gearhart fought alongside Newman against the defeated 765-kilovolt line, which would have forced them to move a septic system near FirstEnergy’s easement. But when Newman showed up recently to their Harpers Ferry-area neighborhood to discuss the new PJM plan, the couple appeared unwilling to fight again.

Next door, another family had already decided to leave, the couple said, and was in the midst of loading furniture into a truck when Newman showed up.

“They’re just going to keep okaying data centers; there’s money in those things,” Pam Gearhart said about local governments in Virginia benefiting from the tax revenue. “Until they run out of land down there.”

In Loudoun County, where the data center industry’s encroachment into neighborhoods has fostered resentment, community groups are fighting a portion of the PJM plan that would build power lines through the mostly rural communities of western Loudoun.

The lines would damage the views offered by surrounding wineries and farms that contribute to Loudoun’s $4 billion tourism industry, those groups say.

Bill Hatch owns a winery that sits near the path of where PJM suggested one high-voltage line could go, though that route is still under review.

“This is going to be a scar for a long time,” Hatch said.

Reconsidering the benefits

Amid the backlash, local and state officials are reconsidering the data center industry’s benefits.

The Virginia General Assembly has launched a study that, among other things, will look at how the industry’s growth may affect energy resources and utility rates for state residents.

But that study has held up efforts to regulate the industry sooner, frustrating activists.

“We should not be subsidizing this industry for another minute, let alone another year,” Julie Bolthouse, director of land use at the Piedmont Environmental Council, chided a Senate committee that voted in February to table a bill that would force data center companies to pay more for new transmission lines.

Loudoun is moving to restrict where in the county data centers can be built. Up until recently, data centers have been allowed to be built without special approvals wherever office buildings are allowed.

“They’re great neighbors, great taxes, all that sort of thing,” Phyllis Randall (D), chair of the county board, said about the industry before a February vote to set that plan in motion. “But somehow, someway, it started to get away from us.”

But such action will do little to stem the worries of people like Mary and Richard Gee.

As it is, the two lines near their property produce an electromagnetic field strong enough to charge a garden fence with a light current of electricity, the couple said. When helicopters show up to survey the land for a third line, the family’s dog, Peaches, who is prone to seizures, goes into a barking frenzy.

An artist who focuses on natural landscapes, Mary Gee planned to convert the barn that sits in the shadow of a power line tower to a studio. That now seems unlikely, she said.

Lately, her paintings have reflected her frustration. One picture shows birds with beaks wrapped shut by transmission line. Another has a colorful scene of the rural Charles Town area severed by a smoky black and gray landscape of steel towers and a coal plant.

“It feels like harassment,” Gee said. “But there’s no one we can call for help.”

A previous version of this article incorrectly reported that Prince William County receives $400 million annually in taxes on the computer equipment inside data centers. It receives $100 million annually. In addition, the article incorrectly stated that two FirstEnergy plants in West Virginia have been equipped with carbon-capturing technology. They do not have such technology in place, The article has been corrected.

About this story

Map sources: Proposed transmission line data provided by Piedmont Environmental Council based on information made available by PJM . The transmission line plan depicts general paths selected by PJM; the final routes will be determined by the utility companies. Existing transmission lines via the EIA U.S. Energy Atlas . Data center locations in Virginia provided by the Data Center Map . Other cartographic data via U.S. Geological Survey and OpenStreetMap.

Story editing by Jennifer Barrios . Copy editing by Thomas Heleba and Shay Quillen. Design and development by Carson TerBush . Design editing by Christian Font and Betty Chavarria . Photo editing by Mark Miller . Visual editing by Tara McCarty . Maps by Laris Karklis . Graphics editing by Kate Rabinowitz .

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