US Provides USD 1 Million Grant for Wind Power Plant in Indonesia as Part of the Just Energy Transition Partnership

Jun 2023

The US Trade and Development Agency has just awarded a grant to PT Medco Power Indonesia (Medco) for a feasibility study to help develop an estimated 111-megawatt wind power plant in West Sumbawa, in Indonesia’s West Nusa Tenggara province. The project will facilitate the replacement of high-polluting sources of power with clean, renewable energy.

The USD 1 million grant supports Indonesia’s clean energy transition under the Just Energy Transition Partnership (JETP), an Indonesian-led partnership based on Indonesia’s own ambitious climate targets. The JETP Secretariat is currently drafting the Comprehensive Investment and Policy Plan (CIPP) that will guide JETP financing over the next three to five years.

USTDA’s study will provide Medco with a detailed wind resource assessment, a preliminary geotechnical analysis, a power plant and interconnection system design, a grid integration study, a preliminary environmental and social impact assessment, a risk assessment, a cost and economic analysis, and an implementation plan.

The USD 20 billion investment in Indonesia’s Just Energy Transition Partnership includes USD 10 billion in public sector pledges, and USD 10 billion from private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ). Under the JETP, the International Partners Group (IPG) is bringing all available tools to bear to support Indonesia’s energy transition, including concessional financing with below market rates.

Importantly, the Indonesian state utility Perusahaan Listrik Negara (PLN) recelnty announced that it is seeking a a 700-million USD investment to install 200-megawatt solar panels that will replace diesel power generators in a bid to reduce carbon emission.

(Sources: US Embassy and Consulates in Indonesia; Vietnam+)

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