A geothermal heat pump installation owned by GDE (Source: antara) Jakarta (VNA) – The Asian Development Bank (ADB) has approved a loanworth 300 million USD to help PT Geo Dipa Energi (GDE), an Indonesianstate-owned company, expand its geothermal power generation.
In its May 28announcement, ADB said that it will also manage a 35 million USD loan from theClean Technology Fund for the project.
GDE will use theseloans to investing in expanding its geothermal power generation capacity by 110megawatts in Java, the country’s largest electricity grid, through theconstruction and commission of two geothermal plants at Dieng in Central Javaand Patuha in West Java.
GDE President DirectorRiki Ibrahim said that the Geothermal Power Generation Project, recognized as aNational Strategic Project by the government, will provide environmentallyfriendly base-load electricity to the Java–Bali electricity grid, reducing CO2emissions by more than 700,000 tonnes per year.
The project will buildcritical geothermal experience in Indonesia and contribute to the government’sefforts to attract private-sector investment in the sector by reducing early-stageproject development risk.
The project, approvedamid the COVID-19 pandemic, will help ensure that Indonesia’s economic recoverywill be green, sustainable, and resilient, he added.
“ADB’s geothermalproject will help Indonesia combat climate change and make its electricitysystem more sustainable, reliable, and efficient. It will also help businessesand consumers access affordable, reliable, and modern energy,” said ADB CountryDirector for Indonesia Winfried F. Wicklein.
Indonesia has theworld’s largest geothermal potential, with an estimated 29 gigawatts (GW), andthe world’s second-largest installed geothermal capacity of 2.1 GW./.
VNA
