The Asian Development Bank (ADB) has approved a $300 million loan to help PT Geo Dipa Energi (GDE), an Indonesian state-owned company, expand it geothermal power generation capacity by 110MW in Java, the country’s largest electricity grid. ADB will also manage a $35 million loan from the Clean Technology Fund for the project.
Winfried F Wicklein, ADB Country Director for Indonesia, said: “ADB’s geothermal project will help Indonesia combat climate change and make its electricity system more sustainable, reliable, and efficient. It will also help businesses and consumers access affordable, reliable, and modern energy. Our support is aligned with Indonesia’s long-term goals for economic growth and energy, including maximising the use of indigenous energy resources, diversifying the fuel mix, and ensuring environmental sustainability.”
Indonesia has the world’s largest geothermal potential, with an estimated 29GW, and the world’s second largest installed geothermal capacity of 2.1GW.
The Geothermal Power Generation Project will support the construction and commissioning of two geothermal plants at Dieng in Central Java and Patuha in West Java by GDE, a state-owned enterprise focused on geothermal exploration, development, and power generation.