ADB to support eastern Indonesia with $600 million to expand access to electricity including solar
Post date: 25/11/2020 - 11:43
The Asian Development Bank (ADB) has approved a $600 million loan to help the State Electricity Corporation (PLN), Indonesia’s state-owned power company, expand electricity access and promote renewable energy in eastern Indonesia. The program also includes two grants, at $3 million each, from the Japan Fund for Poverty Reduction and the Asia Clean Energy Fund.
The second phase of the Sustainable Energy Access in Eastern Indonesia–Electricity Grid Development Program supports efforts by PLN to expand electricity access and improve service reliability in nine provinces in the outer regions of Kalimantan, Maluku, and Papua. The first phase of the program began in 2017 and covered eight provinces in Sulawesi and Nusa Tenggara.
»The program will boost sustainable, equitable, and reliable access to electricity among the communities in remote eastern Indonesia, including through the use of solar and other renewable sources,« said ADB Southeast Asia Energy Director Toru Kubo. Residents in eastern Indonesia currently have limited access to electricity, with up to 56 percent of households having inadequate or no electricity access in Papua and 28 percent in Maluku - much higher than the national average of 4 percent. The government has prioritized 433 villages currently without access to electricity, all of them located in the eastern provinces of Papua, West Papua, East Nusa Tenggara, and Maluku.
Expanded electrification in eastern Indonesia is a key part of the government’s infrastructure investment plan, with the goal of electricity for all by 2024. The government plans to increase the share of renewable energy in the total energy mix to 23 percent by 2025, up from 13 percent in 2016.
Other ADB energy initiatives include two ongoing private sector loans supporting wind and solar power generation in eastern Indonesia. They also include policy-based loans that, along with technical assistance, help strengthen sector governance and fiscal sustainability, boost private sector investment, and promote clean and efficient energy options.