Indonesian Geothermal Gets World Bank Boost

The World Bank will provide $300 million in loans to Indonesia to help boost the capacity of two geothermal power plants on the islands of Ulubelu, South Sumatera, and Lahendong, North Sulawesi, the bank said.

The project, managed by the state geothermal producer PT Pertamina Geothermal Energy, a subsidiary of state-owned oil and gas group Pertamina, will boost the output of the South Sumatra site by 110 megawatts (MW). The Sulawesi site will see an increase of 40 MW. PGE said they hope to have the project completed by 2015.

Pertamina geothermal project

image via Pertamina

The funding package is made up of a $175 million loan from the International Bank for Reconstruction and Development, a division of the World Bank, and $125 million advanced through its Clean Technology Fund, which targets climate change mitigation.

Due to the country’s volcanic geology, Indonesia is the world’s third-largest producer of geothermal energy after the United States and the Philippines. The country recently unveiled plans to become the world leader, investing almost $16 billion in renewable power generation and infrastructure over the next 15 years. The plan calls for 44 new geothermal plants by 2014.

Steve Duda lives in West Seattle, WA with three dogs and a lot of outdoor gear. A part-time fly fishing fishing guide and full-time writer, Steve’s work has appeared in Rolling Stone, Seattle Weekly, American Angler, Fly Fish Journal, The Drake, Democracy Now! and many others.