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Jakarta Post

Coal plant project delays might cost developers $13.1 billion: Report

  • Norman Harsono

    The Jakarta Post

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Jakarta   /   Fri, March 27, 2020   /  11:26 am
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The site of coal-fired power plant PLTU Cirebon, which is currently under construction.(Courtesy of/www.cirebonpower.co.id)

The delayed completion of 11 coal-fired power plants due to the coronavirus pandemic might cost developers billions of dollars in capital outlays, according to a nonprofit energy institution. San Francisco-based Global Energy Monitor (GEM) said in a report issued on Thursday that COVID-19 lockdowns had discontinued supply chains and skilled labor inflows into the 11 projects, which have a combined investment value of around US$13.1 billion. The situation is particularly acute because China and South Korea, both of which are coronavirus hotspots, are major backers of Indonesian coal plants. GEM calculated the costs based on the International Energy Agency’s (IEA) estimate that $1,600 is needed to develop every kilowatt (kW) of power plant in Southeast Asia. “For banks and investors guaranteeing new coal plants, this situation potentially means weaker profitability and...