Captive coal-fired power plants (PLTUs) are privately owned power plants used exclusively to meet industrial operating needs. They are typically located in protected industrial zones, where public oversight and regulatory scrutiny are limited.
Recently, Chinese investors have built many captive power plants in Indonesia through the Belt and Road Initiative, even though China committed in 2021, through its Green BRI, to stop building captive power plants abroad. Ongoing projects in Indonesia have received little public scrutiny.
These plants pose environmental and economic risks, including stranded assets, higher capital costs, and products that are less accepted in international markets, affecting both Indonesia and Chinese investors. Given Indonesia’s substantial renewable energy potential, there is an urgent need to halt the construction of captive power plants, even though regulations governing the transition away from coal remain weak.
Captive coal-fired power plants (PLTU) are privately owned facilities used exclusively for industrial operations, often located in protected industrial zones, which has resulted in limited public oversight and regulatory attention.
Recently, Chinese investors have built many captive power plants in Indonesia under the Belt and Road Initiative, despite China committing in 2021 to stop constructing such plants abroad under its Green BRI. Ongoing projects in Indonesia have received little public scrutiny.
These plants pose environmental and economic risks, including stranded assets, higher capital costs, and reduced international market acceptance, affecting both Indonesia and Chinese investors. With Indonesia’s renewable energy potential, there is urgency to halt captive coal plants, but weak coal transition regulations remain a key challenge.
Celios_Captive_Power_Plant_Paper_Indonesia Download