An Indonesian state-owned company, PT Geo Dipa Energi (GDE) is to receive USD 300 Million from Asian Development Bank (ADB). The fund will be used to expand its geothermal power generation capacity by 110 MW through the construction and commissioning of two geothermal plants at Dieng in Central Java and Patuha in West Java. It will also boost GDE’s capacity to plan and execute projects and undertake government-supported drilling, which aims to attract much-needed private sector investment to develop new geothermal areas.
Besides, ADB will also manage an additional USD 35 million loan from the Clean Technology Fund for the project. It is part of ADB’s commitment to help the country make clean energy transition as a key part of the country’s recovery from the pandemic COVID-19.
ADB has long been active in supporting Indonesia’s geothermal sector, with projects in Muara Laboh, Rantau Dedap and Sarulla. However, the country’s development of geothermal power is still slow, largely because the exploration phase is costly, lengthy and high risk.
Indonesia currently has the world’s largest geothermal potential, with an estimated 29 GW and the world’s second-largest installed geothermal capacity of 2.1 GW.
(Sources: Asian Development Bank; The Jakarta Post)