The World Bank’s Board of Executive Directors approved $55.25 million in grants to support the Geothermal Energy Upstream Development Project in Indonesia, the bank announced late on Thursday.
The project aims to facilitate investments in geothermal power generation in the country.
Under the grant, the Clean Technology Fund will contribute $49 million to support infrastructure development and exploration drilling. The Global Environment Facility will contribute an additional $6.25 million to support technical assistance aimed at building capacity in geothermal exploration, including safeguards due diligence, the EBRD noted.
Geothermal power is the second-largest renewable energy resource in Indonesia after hydropower and a clean alternative to coal-fired power generation.
In Indonesia, 12 percent of the population lack access to modern and reliable electricity, according to the statement.
The EBRD underlined that the Geothermal Energy Upstream Development Project will also support Indonesia’s continued efforts to shift to a greener energy development path and reach its target of increasing the share of new and renewable energy in the primary energy mix to 23 percent by 2025.
By Dilara Zengin