Jakarta (VNA) - The Asian Development Bank (ADB) has approved a 180 million USD loan to support PT Geo Dipa Energi (Persero) in expanding geothermal power generation capacity in Indonesia.
According to ADB’s press release, the financing will be used to complete the construction and operational testing of two geothermal power units on Java Island, each with a capacity of 55 megawatts.
ADB Country Director for Indonesia Jiro Tominaga said the project will provide environmentally friendly baseload electricity to the Java-Bali grid and is expected to reduce carbon emissions by more than 550,000 tonnes of CO2 annually.
He pledged to close collaboration to enhance Indonesia’s geothermal capacity and accelerate the transition toward a cleaner and more resilient energy future.
Tominaga noted that Indonesia holds the world’s largest geothermal potential at 29 gigawatts, with an installed capacity of 2.1 gigawatts - second largest globally.
However, geothermal development in the country still faces challenges such as high costs, long project durations, and significant exploration risks.
Launched in 2020, the project not only supports exploration and power generation but also strengthens Geo Dipa’s capacity in project planning, implementation, and government-supported drilling to attract private investment.
Previously, in 2023, ADB processed the first additional financing for the project - a 10 million USD grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM) - to install advanced technology at the Patuha Unit 2 power plant./.
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