ADB loan helps Indonesia promote renewable energy

Illustrative image (Photo: http://www.gbgindonesia.com/

Jakarta (VNA) - The Asian Development Bbank (ADB) has approved a 600-million-USD loan to help PLN, Indonesia’s state-owned power company, expand electricity access and promote the use of renewable energy in the eastern region of the country.

The loan was granted to the second phase of the Sustainable Energy Access in Eastern Indonesia–Electricity Grid Development Programme to support efforts by PLN to expand electricity access and improve service quality in nine provinces, including Kalimantan, Maluku, and Papua.

The first phase of the programme began in 2017 and covered eight provinces in Sulawesi and Nusa Tenggara.
 
ADB Southeast Asia Energy Director Toru Kubo said on November 25 that the programme will boost sustainable, equitable, and reliable access to electricity among the communities in remote eastern Indonesia, including through the use of solar and other renewable sources.

It will also support eastern Indonesia’s economic recovery from the pandemic and contribute to equitable and resilient growth, he added.

At present, expanded electrification in eastern Indonesia is a key part of the government’s infrastructure investment plan, with the goal of electricity for all by 2024. The Indonesian government plans to increase the share of renewable energy in the total energy mix to 23 percent by 2025, up from 13 percent in 2016. It also hopes to eliminate diesel use from electricity generation.

The loan is expected to support PLN's efforts to install medium and low voltage distribution infrastructure to provide electricity to 1.55 million new customers in nine provinces by 2024./.