PGE launches unprecedented geothermal energy investment
Monday, June 18 2012 - 09:14 AM WIB
The company said in a statement that the government of New Zealand is providing a US$6.95 million technical assistance grant, while the World Bank is extending $300 million in financing to develop 150 MW for Sumatra and Sulawesi.
?Indonesia would greatly benefit from more power generation capacity from environmentally-friendly sources, and the World Bank is pleased to support this very important expansion in renewable energy use in the country,? says Stefan Koeberle, World Bank Country Director for Indonesia.
?There is also an urgent need globally to lock into a low carbon, climate friendly path to development, and with the world?s largest known resources, geothermal in Indonesia can make a significant contribution towards this goal.?
Geothermal is currently the only technology capable of displacing coal-based power in more balanced energy generation capacity. It is a clean and reliable energy source that is available in areas where energy demand is significant and growing. The World Bank financed projects are located in the islands of Sumatra and Sulawesi .
?Indonesia is aiming for an impressive expansion of geothermal development, and PGE is leading this charge,? says David Taylor, the New Zealand Ambassador to Indonesia.
?We cannot understate the importance of receiving this support from the World Bank and the government of New Zealand during this critical time of transition and growth?, said Slamet Riadhy, President Director of PGE. ?Together, we can meet our obligations to Indonesia in developing our natural geothermal resources.?
The technical assistance funded by the New Zealand grant will enhance PGE?s capacity through training, knowledge transfer and capacity building designed to strengthen its institutional capabilities. The government of New Zealand also plans to assist the broader industry through a Geothermal Industry Support Program that is under preparation.
Editing by Reiner Simanjuntak