Development of the 320 MW Sarulla Geothermal Power Development Project in North Sumatra, Indonesia, has been supported by a U$ 1.17 billion loan package from international investors.
The Asian Development Bank (ADB) provided US$ 350 million of the total financial package, while six commercial banks – Bank of Tokyo-Mitsubishi UFJ, ING Bank, Mizuho Bank, National Australia Bank, Société Générale, and Sumitomo Mitsui Banking Corporation – also co-financed the 30-year energy sales deal.
ADB said Indonesia currently used coal and oil to produce 65% of its electricity and fuel its economic growth. The country has vowed to increase the share of renewable energy in its primary energy supply from 5% in 2010 to 25% by 2025, and reduce greenhouse gas emissions by 26% by 2020. Geothermal plants typically produce less than 10% of the greenhouse gas emitted by fossil-fuelled thermal plants.