Indonesia secures $150 M loan to support geothermal energy exploration
Indonesia: The World Bank’s board of executive directors have approved a $150 M loan for Indonesia to scale up investments in geothermal energy by reducing the risks of early-stage exploration.
Indonesia: The World Bank’s board of executive directors have approved a $150 M loan for Indonesia to scale up investments in geothermal energy by reducing the risks of early-stage exploration.
The loan is accompanied by $127.5 M in grants from the Green Climate Fund and the Clean Technology Fund, two institutions supporting climate-friendly development.
Sri Mulyani Indrawati, Minister of Finance of the Republic of Indonesia, commented: “Indonesia’s geothermal sector has vast potential and our current installed geothermal power capacity is already the second largest in the world.“
Under the Indonesia Geothermal Resource Risk Mitigation (GREM) project, the financing will help public and private sector developers to mitigate risks in exploration of geothermal resources, including covering a part of the cost in case of unsuccessful exploration.
The project will also finance technical assistance and capacity building of key stakeholders in the geothermal sector.
Indonesia now has 1.9 GW of installed geothermal power and plans to develop an additional 4.6 GW to help meet the government’s target of renewable energy.
Source: ESI Africa