Pertamina Geothermal launches 1,000 MW investment program in Indonesia
With the support of the World Bank and assistance by the government of New Zealand, Pertamina Geothermal Energy launches a 1,000 MW geothermal investment program for Indonesia.
In a release today, Pertamina Geothermal Energy (PGE) announced the launch of “a globally-unprecedented 1000-megawatt geothermal energy investment program, with assistance from the Government of New Zealand and the World Bank. The Government of New Zealand is providing a USD $6.95 million technical assistance grant, while the World Bank is extending USD $300 million in financing to develop 150 megawatts for Sumatra and Sulawesi.
“Indonesia would greatly benefit from more power generation capacity from environmentally-friendly sources, and the World Bank is pleased to support this very important expansion in renewable energy use in the country”, says Stefan Koeberle, World Bank Country Director for Indonesia. “There is also an urgent need globally to lock into a low carbon, climate friendly path to development, and with the world’s largest known resources, geothermal in Indonesia can make a significant contribution towards this goal.”
Geothermal is currently the only technology capable of displacing coal-based power in more balanced energy generation capacity. It is a clean and reliable energy source that is available in areas where energy demand is significant and growing. The World Bank financed projects are located in the islands of Sumatra and Sulawesi.
“Indonesia is aiming for an impressive expansion of geothermal development, and PGE is leading this charge”, stated His Excellency David Taylor, the New Zealand Ambassador to Indonesia. “As another leading geothermal development country, New Zealand is pleased to be able to assist PGE specifically, and Indonesia’s geothermal industry in general”.
“We cannot understate the importance of receiving this support from the World Bank and the Government of New Zealand during this critical time of transition and growth”, said Mr. Slamet Riadhy, President Director of PGE. “Together, we can meet our obligations to Indonesia in developing our natural geothermal resources.”
The technical assistance funded by the New Zealand grant will enhance PGE’s capacity through training, knowledge transfer and capacity building designed to strengthen its institutional capabilities. The Government of New Zealand also plans to assist the broader industry through a Geothermal Industry Support Program that is under preparation.”
Source: World Bank