The Asian Development Bank (ADB) has approved a US$300 million loan to help PT Geo Dipa Energi, an Indonesian state-owned company, expand its geothermal power generation capacity by 110 megawatts in Java. The Fund will also manage a $35 million loan from the Clean Technology Fund for the project.
Indonesia has the world’ largest geothermal potential, with an estimated 29 gigawatt (GW), and the world’ second-largest installed geothermal capacity of 2.1 GW. ADB, through its private sector finance operations, has had a long-standing interest in some geothermal sector in the country, like Muara Laboh, Rantau Dedap, and Sarulla.
According to him, the development of geothermal power remains slow in Indonesia, largely because the exploration phase is costly, lengthy, and high risk. He asserted, the Geothermal Power Generation Project will support the construction and commissioning of two geothermal plants at Dieng in Central Java and Patuha in West Java by Geo Dipa.