Nagan Raya power station

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Nagan Raya power station (also known as the Meulaboh power station) is a 220-megawatt (MW) coal-fired station in Aceh, Indonesia. An additional 2 x 200 MW is planned as an IPP project.

Location

The undated satellite photo below shows the power station with phase I in Southwest and Phase II in Northwest in Nagan Raya Regency, Aceh.

Loading map...

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Background on Plant

The Meubolah power station is a two-unit, 220-MW coal-fired power plant in Aceh Province, Indonesia, owned by PT Perusahaan Listrik Negara (PT PLN). This project was originally referred to as the Meulaboh project.

In 2012, it was reported that the Meulaboh power plant was one of six projects that would be financed via a US$10.09 billion investment by Japan's Sumitomo Corporation: Central Java Power Project (worth US$2.5 billion), a geothermal power plant in Raja Basa (US$650 million), Indramayu power plant (US$1.25 billion), Meulaboh power plant (US$700 million ), a gas storage project (US$4 billion), and the interconnection system between Jawa and Sumatra (US$1.25 billion).

PowerChina was the project's EPC contractor.

Unit 1 was completed in 2013, and Unit 2 in 2014.

Funding (Units 1 and 2)

In May 2009, a financing agreement for units 1 and 2 was closed. US$181.53 million was provided by the Export-Import Bank of China and PT Bank Pembangunan Daerah Bali. The Export-Import Bank of China's portion of the loan was US$124 million. HSBC acted as financial adviser to PLN.

Description of Expansion (Units 3 and 4)

In April 2015, Jokowi Center coordinator in Aceh, Teuku Neta Firdaus said that PLN is planning to build two additional coal-fired units, with a total capacity of 200 MW. The 2016-2025 long range plan for PT PLN (page 223) includes Nagan Raya #3 as a 2 x 200 MW project in the "pengadaan" (procurement) stage, with completion in 2019 and 2020.

Although the new units are referred to as Units 3 and 4, they will not necessarily be located at or near Units 1 and 2. As of October 2016, it remained unclear whether Units 3 and 4 would be located in Meulaboh, West Aceh, or Nagan Raya.

In May 2017, PT PLN signed a power purchase agreement (PPA) with China Datang Overseas Investment, PT Pembangunan Perumahan, and PT Sumberdaya Sewatama for the 2 x 200 MW expansion. The consortium was to set up a special purpose vehicle (SPV) PT Meulaboh Power Generation to develop the plant through a build, own, operate, and transfer (BOOT) scheme without guarantee. The plant's commercial operation data (COD) was estimated at mid-2020. The project was estimated to cost approximately US$600 million, with funding coming from the consortium’s own equity as well as domestic and international loans, although it was not clear which financial institutions were involved.

The project reportedly started the construction process in December 2018.

In March 2020, the project's sponsor declared force majeure and stated that development would be delayed as a result of the COVID-19 pandemic. In March 2020 the PLN Manager in charge of developing Units 3-4 estimated they would be completed in 2024. In February 2021, a PLN representative estimated that Units 3-4 would be operational by 2023.

By Q1 2021, the progress of the construction process had allegedly reached 30%.

Opposition

In May 2019, residents staged a protest and put up a fence that halted work on the Nagan Raya 3 and Nagan Raya 4 site. In November 2019 a group of mothers from the village of Suak Puntong created a roadblock in protest of the dust and coal dust from the plant polluting their neighborhoods.

Residents protest the Nagan Raya 3-4 project.

Environmental impact

In May 2019, it was reported that chemicals discharged from the plant were killing fish in waterways in Gelanggang Merak Hamlet and Suak Puntong Village.

On March 23, 2020, it was reported that residents of Gelanggang Merak Hamlet had asked the owners of the Nagan Raya-3 and Nagan Raya-4 plant to stop transporting materials to these plants' construction site as dust from trucks poses a risks to people who have contracted COVID-19.

Two barges carrying coal for Nagan Raya power station Units 1-2 have ran aground on the beaches around the power station, the first in July 2019, and the second in July 2020. Both barges were fully loaded with coal when they were beached. The second barge was still abandoned on the beach in March 2021, 7 months after the inital incident. One observer estimated that 3,000 metric tons of coal had been spilled into the surrounding area.

In May 2022, it was reported that dust and coal dust from vehicles traveling to and from the plant had forced merchants who sold their wares along the road to relocated, and had caused sickness and hospitalizations among children.

Corruption inquiry

In October 2021 it was reported that the Corruption Eradication Commission (KPK) was conducting an investigation into improprieties around the permitting of Units 3 and 4.

Accidents

In March 2021, a worker at the construction site of the Nagan Raya Unit 3-4 expansion was killed when a steel pile fell on top of him and crushed his head. The police opened an investigation into the cause of the worker's death and the safety protocols in place at the construction site.

In June 2021, a truck driver delivering sand to the Naga Raya Unit 3-4 construction site was crushed between two queuing trucks when one truck unexpectedly rolled backward. He was taken to a hospital, but was declared dead on arrival. A second worker suffered from a broken hand from the same incident. Police again opened an investigation into the worker's death.

Project Details

• Sponsor: PT Meulaboh Power Generation (Units 3-4)
• Parent: PT PLN Persero, PT Pembangunan Perumahan, PT Sumberdaya Sewatama (Units 1-2); China Datang, PT PLN Persero, PT Sumberdaya Sewatama (Units 3-4)
• Location: Suak Puntong, Kuala Pesisir Subdistrict, Kab Nagan Raya (Nagan Raya Regency), Aceh
• Coordinates: 4.1073603, 96.1989402 (exact) (Units 1-2)
• Status: Operating (Units 1-2); Construction (Units 3-4)
• Gross Capacity: 2 x 110 MW (Units 1-2); 2 x 200 MW (Units 3-4)
• Type: Subcritical
• Projected in service: Unit 1: 2013; Unit 2: 2014; Unit 3: 2023; Unit 4: 2023
• Coal type: Medium-grade
• Coal source: Kalimantan
• Source of financing: Units 1-2: US$124 million in debt from Export-Import Bank of China; US$57.53 million in debt from PT Bank Pembangunan Daerah Bali, Units 3-4: Consortium under the BOOT scheme

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