Jawa 7: Indonesia’s Most Environmental Friendly CFPP Ready to Support Energy Transition

100% and helped 3.677 Terate villagers during the COVID-19 pandemic.

To ensure safe, reliable, efficient and environmentally friendly electricity production generated by Jawa 7, SGPJB has implemented Quality Management System ISO 9001:2015 and ISO/IEC 17025 for laboratory testing and calibration. As the backbone of the Java-MaduraBali electricity system, SGPJB continuously synergises with other relevant stakeholders in implementing best practices governance in the generation sector to optimise the contribution of Jawa 7 to constantly supply high-quality electricity for the Java-Madura-Bali transmission system and is ready to support the Indonesian government’s policy in the electricity sector.

PT Shenhua Guohua Pembangkitan Jawa

Bali (SGPJB) is a Special Purpose Company established on 13 January 2016, to build Jawa 7 Coal-Fired Power Plant (Jawa 7). It is a consortium between China Shenhua Energy (70%) and Pembangkitan Jawa Bali Investasi (30%). As part of the Indonesian government’s 35,000MW acceleration programme, Jawa 7 was built under Independent Power Producer (IPP) Scheme with an investment value reaching US$1.88b or approximately IDR26.8t. The financial close of this project was achieved on 29 September 2016, becoming the first IPP in Indonesia to have its financial close process done in just six months.

Jawa 7 is the first Ultra-Supercritical (USC) Power Plant to operate in Indonesia with a capacity of 2 x 1.050MW/Unit, located in Terate Village, Kramatwatu District, Serang Regency, Banten Province, Indonesia. It has a high plant efficiency at ±45.04% with the largest installed capacity per Unit using the latest technology, and currently, the most economical power plant operating in Indonesia. Unit 1 succeeded to operate commercially on 13 December 2019 (five months earlier than the target) and followed by Unit 2 on September 23, 2020. The PCOD of 2 Units Jawa 7 CFPP officially reached on 08 July 2021.

To ensure sustainable investing, SGPJB integrates Environment, Social and Governance (ESG) principles in Jawa 7 development. SGPJB has a high commitment to environmental protection. At the beginning of the construction, SGPJB set Mangrove Protection Plan to preserve the natural mangrove forests around Jawa 7, participate in reforestation activities, and beach and sea cleaning activities with the local government and stakeholders.

Community Development Programme

The USC technology, makes Jawa 7 operate with high efficiency and low emissions, becoming the most environmentally friendly Coal-Fired Power Plant in Indonesia.

To this day, all parameters for monitoring the environmental impact of Jawa 7 are still in compliance with the government’s quality standards, proven by PROPER category blue achievement from the Ministry of Environment and Forestry.

In addition to the commitment to environmental protection, one of SGPJB’s missions is to encourage the social and economic development of the community. Referring to the social mapping of the area around Jawa 7, SGPJB designed Corporate Social Responsibility (CSR) programmes for the community. Right after the PCOD of 2 Units in Jawa 7 in 2021, SGPJB initiated the “Desa Harapan”/Village of Hope programme, a community empowerment programme for Terate Village, one of the Ring-1 Village of Jawa 7.

The programme was designed based on Sustainable Development Goals (SDGs) so that the community can develop their potential to improve their welfare in the economic, health and education sectors independently and sustainably. The programme consists of direct assistance activities towards villagers in the fields of Micro Finance, Production & Marketing of Local Products, Waste Management, Donation funds & Coaching for Honorary Teachers. On 14 July 2022, all of the activities have been successfully implemented

Key Strategy for Emissions Reduction

In order to achieve Net Zero Emissions and reduce Greenhouse Gas (GHG) Emissions the government of Indonesia, through the Ministry of Energy and Mineral Resources, officially launched Carbon Trading in the power generation sub-sector on 22 February 2023. Based on the Carbon Trading roadmap for the power generation sub-sector, the implementation of Carbon Trading has the potential to reduce greenhouse gas emissions by more than 36 million tonnes of CO2e in 2030.

At the event, SGPJB received Technical Approval of Upper Emission Limits (PTBAE-PU) directly from the Ministry of Energy and Mineral Resources to support and participate in the Indonesia government road map plan for carbon trading Phase 1 as a strategy to achieve the target in accordance with the enhanced Nationally Determined Contribution (NDC) document. SGPJB is ready to participate in Indonesia’s Energy Transition towards lower-carbon green economic activities.