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The proposed RBL program aims to enhance sustainable, equitable, and reliable electricity access in nine provinces while supporting PLN’s power supply expansion. It aligns with ADB’s Country Partnership Strategy and helps bridge PLN’s financing gap, including support for community-level renewable energy development.
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.