The World Bank’s Board of Executive Directors today approved a $150 million loan for Indonesia to scale up investments in geothermal energy by reducing the risks of early-stage exploration. The loan is accompanied by $127.5 million in grants from the Green Climate Fund and the Clean Technology Fund, two institutions supporting climate-friendly development.
Under the Indonesia Geothermal Resource Risk Mitigation (GREM) project, the financing will help public and private sector developers to mitigate risks in exploration of geothermal resources, including covering a part of the cost in case of unsuccessful exploration. The project will also finance technical assistance and capacity building of key stakeholders in the geothermal sector.