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World Bank gives Indonesia $55.25m to develop geothermal power

The World Bank’s board of executive directors has approved $55.25 million in grants to support geothermal energy projects in Indonesia with the aim to facilitate investment in geothermal power generation.

“Insufficient energy holds back Indonesia’s growth potential and limits the future opportunities of millions of Indonesians. These grants will help Indonesia develop its abundant geothermal power potential,” World Bank country director for Indonesia Rodrigo Chaves said in a statement.

“The World Bank fully supports the government’s efforts to achieve 100 percent access to modern, reliable electricity as quickly as possible.”

The grant has two components with different objectives. The Clean Technology Fund (CTF) contributes $49 million to support infrastructure development and exploration drilling. The Global Environment Facility (GEF) contributes an additional $6.25 million to support technical assistance aimed at building capacity in geothermal exploration and due diligence.

Geothermal power is the second-largest renewable energy resource in Indonesia after hydropower and a clean alternative to coal-fired power generation. Some 30 million Indonesians – or 12 percent of the population – lack access to modern and reliable electricity.

Meanwhile, World Bank senior energy specialist Peter Johansen said expanding access more equitably across the vast archipelago was another key objective for the project.

“The project has a special emphasis on the eastern part of Indonesia, where the percentage of families lacking access to modern and reliable electricity remains very high,” said Johansen. (bbn)

Source: Jakarta Post