The World Bank’s Board of Executive Directors has approved a USD 380 million loan for Indonesia to develop its first pumped-storage hydropower plant, which aims to improve power generation capacity and support the country’s energy transition and decarbonization goals. The financing will support the construction of the Upper Cisokan pumped storage hydropower plant, which will be located between Jakarta and Bandung and is expected to have a capacity of 1,040 MW.
The facility is expected to provide significant power generation capacity to meet peak demand, provide significant storage capacity to enable a larger penetration of renewable energies. It is also expected to alleviate increasing transmission loads on the grid and provide consumers in Java and Bali access to a more environmentally friendly and reliable supply of electricity, as over 80% of the power generated for the Java-Bali grid, which supplies electricity to 70% of the country’s population, currently comes from fossil fuels.
The project will help enhance the system flexibility and efficiency in balancing supply and demand, and therefore improve the reliability and quality of electricity services in Java and Bali. It also aims to support the government to integrate variable renewable energy into the Java-Bali grid, and to do so in an environmentally and socially sustainable manner.
(Source: World Bank)