The Asian Development Bank (ADB) announced on Friday that it has approved a loan of 180 million US dollars as the second additional financing to support PT Geo Dipa Energy, an Indonesian state-owned company, in boosting the country’s geothermal electricity generation.
The Geothermal Power Generation Project aims to construct and commission two geothermal plants, each with a capacity of 55 megawatts, on Java Island. According to an ADB press release, these plants will provide environmentally friendly base-load electricity to the Java-Bali electricity grid, contributing to a reduction of more than 550,000 tons of carbon dioxide emissions annually.
The additional financing will be directed towards supporting the completion of the project, helping to manage rising costs and ensuring continued progress towards Indonesia’s clean energy and climate targets.
“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’s Country Director for Indonesia, Jiro Tominaga.