The World Bank has approved a US$640M loan to help finance development of the Upper Cisokan pumped storage project – the first facility of its kind in Indonesia.
Construction of the project, near Bandung, West Java, is expected to be completed in 2016 at a total cost of US$800M. Indonesia’s state owned electricity company, PLN, will provide the remaining project cost of US$160M. Once successfully implemented, is expected to provide over 1000MW of peak-hour electricity to the Java-Bali power system.
“A reliable, affordable and sustainable supply of electricity is essential for Indonesia to emerge as a large mid-income economic power in the next decade. As it stands now, Indonesia has one of the lowest consumption rates per capita in the region. Electrification ratios too remain low,” said Stefan G. Koeberle, the World Bank Country Director for Indonesia. “This project will help boost the peaking capacity of the Java-Bali power system, reduce oil dependency and support economic growth over the medium to long term.”
“The Upper Cisokan project will make Indonesia one of very few developing countries to have such a power plant,” added Leiping Wang, the World Bank Senior Energy Specialist in charge of the project team.
The Upper Cisokan project includes construction of a dam and power plant at the catchment of the Upper Cisokan River with an installed capacity of 1040MW.