ADB approves 180 mln USD loan to boost Indonesia's geothermal electricity generation

The Asian Development Bank (ADB) on Friday said that it has approved a 180-million-U.S.-dollar loan as the second additional financing to support PT Geo Dipa Energy, an Indonesian state-owned company, to further boost the country's geothermal electricity generation.

The Geothermal Power Generation Project supports the construction and commissioning of two geothermal plants, each with a capacity of 55 megawatts, in Java Island, the ADB said in a press release.

The project will provide environmentally friendly base-load electricity to the Java-Bali electricity grid, reducing carbon dioxide emissions by more than 550,000 tons per year, the Manila-based bank said.

The additional financing will focus on supporting project completion against increasing costs and sustaining progress toward the country's clean energy and climate goals, the ADB said.

"PT Geo Dipa Energy plays a catalytic role in driving the next phase of geothermal development. We look forward to continuing our close collaboration to expand Indonesia's geothermal capacity and accelerate the shift toward a cleaner, more resilient energy future," said ADB Country Director for Indonesia Jiro Tominaga.