Bali and coal

Electricity supply to the Indonesian island of Bali is currently provided from a mix of local diesel and gas plants as well as via an undersea link from Java. However, further electricity generation options are being considered to overcome what has been reported by Perusahaan Listrik Negara, the Indonesian government owned utility, as a 200 megawatt supply deficit in providing electricity to homes that currently have no connection and avoiding blackouts at times of peak demand.

In response to this reported shortage, in October 2010 the government of Indonesia signed a US$1.5 billion memorandum of understanding with two Chinese companies, China Huadian Engineering Corporation Ltd and China Huadian Development for the development of the coal-fired Celukan Bawang power station in Celukan Bawang, Buleleng regency, North Bali, Indonesia.

In the wake of a two hour blackout in mid-March 2011, the general manager of the Bali branch of state-owned electricity monopoly PT PLN, Dadan Koernia Poetra, stated that Bali had the capacity to generate 604 megawatts of power in 2010. The Jakarta Post reported that "with electricity demand increasing 11 percent annually to cater to the island’s growing tourist industry. During peak hours, the island needs 548.5 megawatts, with only 80 megawatts for emergency supplies."

Dadan used the blackout to urge the local community to back all proposed new power stations. "This condition leaves us quite vulnerable. In 2018, we predict Bali will need 1,238 megawatts during peak hours. We expect that all parties including the local government, tourist industry and community give their support to accelerate any electricity power plant projects here," he said. However, Bali Governor Made Mangku Pastika stated that "we have adopted a clean and green Bali policy. We oppose the use of fossil fuel-powered generators because of the resulting pollution. We should promote the use of gas or other renewable energy sources such as hydroelectric power and solar energy to keep Bali clean."

Current power electricity generation sources on Bali
The island currently has access to 647.6 MW of electrical capacity:
 * Pesanggaran diesel (11 units) - 70.754 MW
 * Pesanggara gas (4 units) - 125.45 MW
 * Gilimanuk gas (1 unit) - 133.8 MW
 * Pamaron gas (2 units) - 97.6 MW
 * Total generating capacity: 427.604 MW
 * Underwater cables (Ketapang-Gilimanuk) providing 220 MW from the Java grid.

Buleleng geothermal project
Additional power generation sources have been referred to as comprising a geothermal steam-powered generation system started in Buleleng, North Bali, in 2008. However, one report states that this "remains plagued by land acquisition problems." The Bedugul geothermal project has long faced opposition on environmental and religious grounds. The project has been promoted by Bali Energy Limited, a Bermuda registered geothermal power company operating in Indonesia. The proposed project has been estimated to provide 175MW.

Java-Bali 500 KV Power Transmission Crossing Project
Another project is the $10 million Java-Bali 500 KV Power Transmission Crossing Project which is being considered for funding by the Asian Development Bank. The link is proposed to provide an additional 1,500 MW of capacity to the Bali power grid. Another source has reported the capacity of the interconnection as providing 1,800 megawatts of electricity to the island by 2015 with an interim phase of the project supplying additional power by 2012. One report states that "efforts to add more submarine cables between Java and Bali to connect to high-voltage electrical lines is threading its way through objections raised by those fearful of the environmental impact of installing power lines through Bali's environmentally delicate national park." The Asian Development Bank lists the project as slated for a fact-finding tour in December 2011, internal appraisal in February 2012 and consideration by the Board of Directors on May 26, 2012.

In March 2010 the Asian Development Bank approved a $50 million loan to for the Java-Bali Electricity Distribution Performance Improvement Project. The French Agence Française de Développement provided a matching $50 million loan. The funding was provided to PLN is the executing agency for the project, which is due for completion by May 2012. "To make energy savings of 400 gigawatt-hours worth an estimated $60 million a year, the project will reconfigure electrical equipment, reconductor or replace old overhead distribution lines and voltage transformers, and introduce new switching stations and capacitors. The distribution of up to 500,000 quality compact fluorescent lamps and light emitting diodes in remote areas will help demonstrate the energy savings and greenhouse gas reduction benefits of efficient lights, which last far longer and consume much less energy than commonly used incandescent bulbs," the bank stated in a media release. The bank noted that "PLN is now planning to sharply expand the use of coal for power generation to reduce reliance on imported oil in the short term." The agreements between the Government of Indonesia and PLN contains limited information on the specific details of the project.

The Bank also stated that about "200 megawatts (MW) equivalent in distribution system capacity will be freed and about 400 gigawatt-hours (GWh) will be saved annually through energy efficiency at a cost well below the cost of developing equivalent new capacity. This will reduce the emissions of Indonesia's power sector by about 330,000 tons (t) each year." The bank has also stated that if the two-year project is successful "ADB will scale up this operation with a sector project (using a multitranche financing facility) and support part of the PLN's financing needs for the energy efficiency strategy."

Solar and wind investigation
It has also been reported that in late 2010 the Bali House of Representatives (DPRD-Bali) recommended that, in additional to the Java-Bali 500 KV Power Transmission Crossing Project, the province undertake a detailed review of the potential of solar energy and wind power. A limited trial of the installation of 60 watt photovoltaic systems in 1700 houses was scheduled to be completed by the end of 2010. "Let the Sunshine In: Bali Develops Solar Energy Sources", Bali Discovery Tours, May 1, 2010.

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