Key facts
- Indonesia's energy ministry (ESDM) is accelerating medium-rank coal supply contracts for state-owned power plants on the Java grid.
- Rolling blackouts have occurred in the region over the past two weeks.
Indonesia's energy ministry is speeding up medium-rank coal supply contracts for state-owned power plants on the Java grid. This move aims to address rolling blackouts caused by a mismatch in coal specifications, with lower-rank coal leading to reduced plant capacity.
The acceleration of coal purchases highlights Indonesia's efforts to ensure energy stability and prevent further power disruptions, which can impact industrial output and daily life in a densely populated region.
Indonesia's energy ministry (ESDM) has expedited the signing of supply contracts for medium-rank coal to be used in state-owned coal-fired power plants on the Java grid. This action is a direct response to rolling blackouts experienced in the region over the past two weeks.
The issue stems from consistent coal deliveries, but with a composition primarily of lower-rank coal. This mismatch in coal specifications has led to power plants operating at reduced capacity, according to an ESDM official.
To rectify the situation, ESDM has established a cross-sector procurement team tasked with ensuring a sufficient supply of coal with a calorific value (CV) of GAR 5,200 kcal/kg for the affected plants. Medium-rank coal shipments have already been secured from major producers including Kaltim Prima Coal, Indo Tambangraya Megah (ITMG), and the state-owned Bukit Asam. This coal will be blended with lower-grade coal to enhance plant efficiency and restore output.
Several plants have been identified as experiencing shortages of GAR 5,200 kcal/kg coal, including Pelabuhan Ratu, Lontar, Labuan, Suralaya units 1-8, Jawa 7, 9 and 10, Indramayu, Paiton units 1, 2, and 9, Rembang, Pacitan, and Tanjung Awar-Awar.
Concurrently, state-owned utility PLN is working to bring two baseload independent power plants in Cilacap and Pancitan back online after they were disconnected due to technical issues. The combination of these technical outages and the reduced output from coal plants burning lower-grade coal resulted in a power deficit of 2GW, prompting PLN to implement load shedding for grid stability and causing the rolling blackouts. One of the disconnected power plants has been reconnected, with the other expected to be back online within the week.