Indonesia needs additional power generation sources to meet rapidly growing demand. Limited power sector investments and equipment maintenance during the Asian financial crisis resulted in significant shortfalls in many parts of the country, including the island of Sulawesi, which suffers from rolling blackouts.
In addition, Indonesia generates a large share of its electricity from coal and requires new sources of renewable power as it works toward a goal of generating almost 25 percent of its power from renewable sources by 2025.
Solution and Impact
Financing supported construction of Indonesia’s first utility scale wind power plant consisting of 30 wind turbines and a three kilometer transmission line that connects to the grid. The new plant has added 75 MW of renewable power, and expanded the country’s capacity to generate clean energy.
The new wind power plant has also helped to offset some seasonal disparities in the power generation capacity in Sulawesi, where hydropower generation slows during the dry season. The plant has also introduced into the country a new wind turbine technology that is viable in areas with lower wind capacity.