ASIATODAY.ID, JAKARTA – PT PLN (Persero) received global funding support from the World Bank, Canada Clean Energy & Forest Climate Facility and Clean Technology Fund amounting to US$581.5 million to support increasing access to electrification in Indonesia, the company’s energy transition program and digitalization.
This was marked by the signing of a grant scheme and direct loan agreement with the Sovereign Guarantee, entitled the Indonesia Sustainable Least-cost Electrification-1 (ISLE-1) Program.
The ISLE-1 program is a program-based loan in support of the World Bank and Development Partners to increase access to electrification, increase grid readiness for the integration of new renewable energy and increase the operational capacity of PLN’s information technology.
The preparation of this program also received technical assistance and funding from the Sustainable Renewables Risk Mitigation Initiative (SRMI) which is managed by the Energy Sector Management Assistance Program (ESMAP).
PLN President Director Darmawan Prasodjo assessed the importance of World Bank funding collaboration through the ISLE-1 program to finance distribution, transmission and electricity generation plans towards 100 percent electrification in Indonesia.
This program will also finance corporations to increase the new renewable energy mix, reduce generation costs, and strengthen PLN’s financial and operational capacity.
“ISLE-1 focuses on two regions, namely Maluku and Nusa Tenggara, because these two regions have low levels of electrification and high average electricity generation costs,” said Darmawan, Thursday, June 13 2024.
PLN recognizes that the energy transition cannot be carried out alone. As a locomotive for the energy transition, PLN continues to build collaboration with various parties to find solutions to existing challenges.
“The energy transition cannot be carried out in isolation, because there are technical, strategic, operational and funding challenges. PLN has mapped all these challenges so that each challenge can be overcome, can be mitigated and can be managed so that it can continue to progress and achieve the energy transition mission,” said Darmawan.
World Bank Director for Indonesia and Timor-Leste Carolyn Turk said, the World Bank is ready to support the Indonesian Government’s commitment to achieve 100 percent electrification and accelerate renewable energy. This funding is expected to create a balance between the required network investment and the large electricity demand, especially in the Eastern Islands region.
“The World Bank is ready to support the Indonesian Government’s commitment to achieve 100 percent electrification. Greater levels of household electrification, especially in the Eastern Islands, will provide additional economic opportunities, especially for women,” said Turk.
Not only electrification, Turk also said that the ISLE-1 program funding was also intended to support the development of clean energy in Indonesia.
“Investment in renewable energy is important to put the sector on a more efficient and sustainable path while improving affordability and reliability,” he said. (ATN)
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