Indonesia to Double Geothermal Capacity
Source: Renewable Energy Focus (3/17/10)
"Indonesia has the largest geothermal energy potential in the world"
"Indonesia has the largest geothermal energy potential in the world," explains Katherine Sierra of the World Bank. "The co-financing will help Indonesia reduce the use of fossil fuels to meet its rapidly growing energy needs. It also gives a clear signal on the practical actions developing countries can take to combat global climate change."
The US$400 million plan, endorsed by the Trust Fund Committee of the Clean Technology Fund (CTF), will transform Indonesia's use of renewable energy, including geothermal, and support the Government's long-term goal of reducing GHG emissions by 26% by 2020.
The plan will use co-financing from the multilateral CTF to expand large-scale geothermal power plants and to accelerate initiatives to promote renewable energy and energy efficiency by creating risk-sharing facilities and addressing financing barriers to small- and medium-scale investments.
Funding Leverages Additional Support from Others
Under the plan for Indonesia, the CTF will mobilize an additional US$2.7 billion from a range of other sources.
"The greater availability of power supplies will help the government of Indonesia reach its objective of providing electricity access from the present 65% of the population to 90% by 2020," says Ursula Schaefer-Preuss of the Asian Development Bank (ADB). "Through the utilization of a cleaner fuel source, geothermal development will also result in better health benefits and more energy access for poor people."
Indonesia is the fourth country in Asia to have a CTF-funded investment plan for the deployment of low-carbon technologies such as geothermal endorsed by governments. The other countries are the Philippines, Thailand and Vietnam.
The Trust Fund Committee's endorsement of Indonesia's plan raises the level of CTF support to Asia to US$1.2bn, mobilizing a total of US$13bn from government, private sector and other sources.