ADB supports to geothermal electricity generation advancement in Indonesia
                            
                                
                                
                                        
                                            
                                        
                                
                                    
                                        Published by Jessica Casey,
                                        Editor
                                        
                                    
                                Energy Global,
                                
                            
                        
The Asian Development Bank (ADB) has approved a US$180 million loan as the second additional financing to support PT Geo Dipa Energy (GDE) – an Indonesian state-owned company – to further boost the country’s geothermal electricity generation.
The Geothermal Power Generation Project supports the construction and commission of two geothermal plants each with a capacity of 55 MW in Java Island. The project will provide environmentally friendly baseload electricity to the Java–Bali electricity grid, reducing carbon dioxide emissions by more than 550 000 tpy. This additional financing will focus on supporting project completion against increasing costs and sustaining progress toward the country’s clean energy and climate goals.
“ADB is pleased to partner with the Government of Indonesia in advancing the country’s sustainable energy transition,” said ADB Country Director for Indonesia, Jiro Tominaga. “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.”
Despite having the world’s largest geothermal potential (29 GW) and the second-largest installed capacity (2.1 GW), Indonesia’s geothermal development remains slow due to the high cost, long duration, and high risk of exploration. Approved in 2020, the project supports GDE in geothermal exploration, development, and power generation while strengthening its capacity to plan and implement projects and conduct government-supported drilling to attract private investment.
As part of its community strategy focused on women, GDE allocates funds to improve women’s livelihoods through support for women-led small businesses and scholarships. It also promotes gender balance across its staff and contractors by integrating gender-sensitive approaches in its operations.
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Read the article online at: https://www.energyglobal.com/other-renewables/31102025/adb-supports-to-geothermal-electricity-generation-advancement-in-indonesia/
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