A US$380 million loan from the World Bank will help develop the 1040MW Upper Cisokan pumped storage hydropower plant in Indonesia – the first project of its kind in the country.
The project aims to improve power generation capacity during peak demand, while supporting the country’s energy transition and decarbonization goals. Over 80% of the power generated for the Java-Bali grid, which supplies electricity to 70% of the country’s population, comes from fossil fuels. A key measure to support Indonesia’s decarbonization agenda is the development of energy storage to enable integration of renewable energy into the grid. Pumped storage hydropower plays a crucial role in this approach.
The financing will support the construction of the plant, to be located between Jakarta and Bandung. The facility will have significant power generation capacity to meet peak demand, provide significant storage capacity to enable a larger penetration of renewable energies and, because of its close location to two large demand centers, will alleviate increasing transmission loads on the grid. As a result, a more environmentally friendly and reliable supply of electricity will benefit consumers in Java and Bali.
“We are excited about this project as it will be the first of its kind for Indonesia. It represents a turning point for Indonesia’s decarbonization pathway. The World Bank will continue to support Indonesia in its efforts to achieve resilient, sustainable, and inclusive development that will benefit the people of Indonesia now and in the future,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste.