Eastern Indonesia Sustainable Energy Access Sector project Project Dates: January 2016 - December 2019
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PROJECT OBJECTIVE

The proposed $635 million sector loan aims to help improve access to electricity services in Eastern Indonesia (Kalimantan, Maluku, Nusa Tenggara, Papua, and Sulawesi) by supporting a cluster of new small- to mid-sized power stations fueled by natural gas which is a clean burning fuel that has lower power generation costs and less local pollutants and carbon dioxide (CO2) emissions compared to diesel- fired units. The project also plans to include pilot-scale gas and solar hybrid units that can help enhance the borrower’s operational know-how and position them well for future scale up of renewable energy use.

PROJECT DESCRIPTION

Tprogram aims to support the development of electricity distribution networks to connect businesses and households and to enhance the quality of life in Eastern Indonesia by the sustainable use of electricity as a key driver of increased economic activity. The program will complement a proposed sector loan for small- to mid-sized natural gas-fired power stations to deliver more sustainable energy services to communities across Eastern Indonesia. Natural gas is a much cleaner fuel compared to diesel and the quick-responding nature of gas-fired engines and turbines make them a good match for intermittent renewable energy sources such as solar and wind. It is an appropriate transition fuel to move towards a low-carbon energy system. The two loans will help enhance access to sustainable energy services and contribute to climate change mitigation.


SECTORS OR AREAS OF WORK
  1. Smart grids

Region/Location

BUDGET

USD 635,000,000

IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
GOVERNMENT PARTNER
  1. None
BUDGET

USD 635,000,000

IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
GOVERNMENT PARTNER
  1. None