Supporting Indonesia’s Energy Transition
Status
In preparationÂ
Project Duration
2025-2029
Project volume
69.7 Mio EUR
Location
Sulawesi, Papua
Type of funding
Concessional Loan
Partner
Directorate General for New and Renewable Energy (EBTKE), Ministry of Energy and Mineral Resources
The aim of the project is to improve the climate and environment-friendly power supply in remote regions of Indonesia
Short Description
Under the “1000 Islands – Rural Electrification by Renewable Energies Phase II”, the state electricity supplier and project promoter PLN will be supported in expanding the renewable energies to meet the electricity demand in remote regions of Sulawesi and Papua. The measure includes the financing of the construction and expansion of four small hydropower plants and is intended to contribute to a climate and environmental improvement of electricity supply and social and economic development in remote regions of Indonesia.
Objective
By promoting renewable energies, the project on reducing greenhouse gas emissions contributes to achieving the Federal Government’s development policy goals in the core area of “Climate and Energy, Just Transition” between the ECB and Indonesia. Furthermore, the project contributes to the achievement of the RE expansion goals that the Indonesian Government has set itself as part of the Just Energy Transition Partnership (JETP) of 44% on-grid RE until 2030. The measure is also intended to make a positive contribution to the sustainable development of rural regions.Â
State of Implementation
The four small Hydropower Plants Lapai, Riorita, Kalibumi and Watunohu, three located in Sulawesi and one in Papua, are currently in the implementation phase. The detailed designs for each HPP are under preparation and the project is expected to be completed in 2027.
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