Paiton-3 power station

From Global Energy Monitor

The Paiton-3 power station is an 825-megawatt (MW) coal plant in East Java Province, Indonesia. It is part of the 4,945-MW Paiton power complex.

Location

The satellite photo below shows the plant, located in Bhinor Village, Paiton District, Probolinggo Regency, East Java Province.

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Background

Paiton-3 power station is a single-unit, 825-MW coal plant commissioned in 2012 in East Java, Indonesia.[1][2][3]

Initially, International Power had a 31% share in the project. In its 2009 annual report International Power, a 31% shareholder in the project, stated that "in March 2010 we signed the US$1,215 million financing for the 815MW coal-fired Paiton 3 plant in Indonesia, which will be located within the existing Paiton complex. The project, has a 30-year power purchase agreement (PPA) with PT PLN, the Indonesian state utility, and construction is covered by a fixed price contract with the engineering, procurement and construction (EPC) contractor, Mitsubishi Heavy Industries, Ltd."[1]

Paiton-3 is part of the 4,945-MW Paiton coal-fired power complex, including the two-unit, 800-MW PLN Paiton plant, owned by PLN; the two-unit, 1,340-MW Paiton-1 plant, operated by PT Paiton Energy; the two-unit, 1,320-MW Paiton-2 plant, owned by Siemens AG and YTL Corporation; and the single-unit, 660-MW PLN Paiton Baru plant, also owned by PLN.

Environmental Impact

In May 2017 it was reported that the Paiton power complex produces the largest amount of Hazardous and Toxic B3 waste of any facility in East Java, 153 million tonnes a year, a figure that represents 80% of the annual total of 170 million tonnes for East Java.[4] B3 waste is defined by Government Regulation 19 of 1994 as "any waste containing dangerous and/or toxic material, which due to its characteristics and/or concentration and/or amount, either directly or indirectly, may damage and/or pollute the living environment and/or endanger human health."[5]

Financing

In 2009, PLN was in discussions with Chinese banks to fund the Paiton-3 power station. As of February 2009, PLN had already received approximately US$330 million in disbursements from the Export-Import Bank of China. However, although a funding agreement for the full cost of the power station had reportedly been signed, there were ongoing complications between the PLN and the Chinese funders, with the latter demanding higher interest rates on the loans than previously agreed.[6]

In 2010 Paiton Energy signed a US$1.215 billion loan agreement to accelerate the plant's construction with the Japan Bank for International Cooperation (JBIC) and eight commercial banks: Crédit Agricole, MUFG, Sumitomo Mitsui Banking Corporation, HSBC, ING BNP Paribas, Sumitomo Mitsui Trust Holdings and Mizuho.[7] In 2017 Paiton Energy tapped a further US$754 million in refinancing in from Sumitomo Mitsui Banking Corporation, HSBC, Barclays, DBS Bank, Mizuho, Standard Chartered, Citi and Shinsei Bank.[8] It appears that the Chinese funders pulled out of the project and were replaced by an international consortium of banks.

Ownership

In June 2021, Mitsui & Co. Ltd. announced that it would sell its majority stake (45.5%) in PT Paiton Energy to RH International (Singapore) Corporation Pte. Ltd., a wholly owned subsidiary of the Thai energy company RATCH Group Public Company Limited. Mitsui stated that it was selling its stake in PT Paiton in an attempt to increase the sustainability of its operations. Apart from Mitsui, Paiton Energy is owned by Qatari energy investment company, Nebras Power QSC (35.5%), PT Toba Bara Sejahtra Tbk. (TOBA)(5%), and Jera Co., which is a joint venture between Tokyo Electric Power Co. and Chubu Electric Power Co. (14%).[9]

Project Details

  • Sponsor: PT Paiton Energy
  • Parent company: RATCH Group Public Company Ltd. (45.5%), Nebras Power QSC (35.5%), TEPCO (7%), Chubu Electric Power (7%), PT Toba Bara Sejahtra Tbk (5%)
  • Location: Bhinor Village, Paiton District, Probolinggo Regency, East Java Province, Indonesia
  • Coordinates: -7.71446, 113.58326 (exact)
  • Status: Operating
  • Gross Capacity: 825 MW
  • Type: Supercritical[10]
  • In service: 2012
  • Coal Type:
  • Coal Source:
  • Source of financing: US$330 million from Chinese Export-Import Bank; US$1.215 billion loan from JBIC and eight commercial banks

Articles and resources

References

  1. 1.0 1.1 International Power, 2009 Annual Report, International Power, 2010, page 52.
  2. "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994", Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009.
  3. "Paiton III Coal Power Plant Indonesia," Global Energy Observatory, accessed December 2013
  4. Komplek PLTU Paiton Sumbang Limbah Beracun Terbesar di Jatim, Kompas, May 18, 2017
  5. Government Regulation of the Republic of Indonesia regarding hazardous and toxic waste management (No. 19 of 1994) Ecolex, accessed December 2017
  6. PLN secures part of the loans needed for 10,000 MW program, Jakarta Post, Feb. 25, 2009, Archived Aug. 5, 2009
  7. "Paiton III expansion gets finance", NS Energy, Apr. 27, 2010
  8. "Paiton 3 Power Plant Refinancing 2017", IJGlobal, accessed Jun. 19, 2020
  9. Denis Riantiza Meilanova, Mitsui Sepakat Lepas Saham Paiton Energy ke Anak Usaha RATCH Group, Bisnis, June 22, 2021
  10. Technical Information, PT Paiton Energy, Accessed June 25, 2021

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