Page 10 - AsiaElec Week 50 2021
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AsiaElec RESILIENCE AsiaElec
ADB to lend $600mn to
Indonesia to fund grid
resilience
INDONESIA THE Asian Development Bank (ADB) is to lend Meeting that demand requires strengthening
$600mn to Indonesian state-owned utility PLN Java’s power grid and transitioning to a low-car-
to improve grid reliability and resilience in west- bon economy, with the ability to integrate more
ern and central Java, and to promote renewable renewables in the power grid.
energy. The loan, with a sovereign guarantee from the
The cash will be used to back the Sustainable Government of Indonesia, will improve PLN’s
and Reliable Energy Access Programme. It will transmission lines, power grid automation and
improve PLN’s waste and asset management, hazardous waste storage facilities. It will bolster
procurement and community education. PLN’s digitalisation of business processes, such
The programme will benefit five provinces as e-procurement, and support the installation
– Banten, Central Java, Jakarta Special Capi- of more charging stations for electric vehicles
tal Region, West Java, and Yogyakarta Special (EVs).
Region. The programme will benefit women and girls,
“The programme will enhance access to sus- who carry the burden of household responsibil-
tainable and reliable energy in western and cen- ities, by expanding their participation in ener-
tral Java, home to 41% of Indonesia’s population, gy-reliant, income-generating activities such as
including about 30mn people who are poor or the local production of goods, agricultural pro-
living near the poverty line,” said ADB Senior cessing and tourism.
Finance specialist Daniel Miller. In addition, ADB will administer a $500,000
“The area also hosts 11.3mn, or 56%, of the grant from the Republic of Korea e-Asia
country’s micro and small enterprises (MSEs). and Knowledge Partnership Fund for the
By providing reliable and sustainable electricity, programme.
the programme will improve the quality of life, The technical assistance will fund PLN’s staff
support the delivery of essential public services training in emerging technologies, including
and create jobs. It will accelerate Java’s economic power grid system planning and automation,
recovery and help transform its poorer areas grid operation with increasing amounts of
into growth engines through agro-industries, renewable generation capacity, EV charging
tourism and MSEs.” services and utility-scale energy storage systems.
Java, which dominates Indonesia’s economic ADB’s country partnership for Indonesia
output, has achieved universal electricity access, 2020-2024 focuses on boosting Indonesia’s eco-
but economic growth has been constrained by nomic recovery through sustainable and resil-
poor power quality, frequent interruptions and ient energy infrastructure. Under results-based
electricity losses. lending, disbursements of funds are linked to the
To achieve sustained and higher economic achievement of programme results to enhance
growth, Java will require 259 TWh of electric- the accountability and effectiveness of govern-
ity by 2030, or 66.4% of the country’s projected ment reforms by creating incentives for deliver-
demand. ing and sustaining results.
P10 www. NEWSBASE .com Week 50 15•December•2021
