Wahyu Dwi Anggoro
“We are grateful to the Government of Indonesia and to Cirebon Electric Power for their perseverance and leadership on the energy transition. ADB will continue to work closely with our partners in Indonesia and across the region to demonstrate that coal and other fossil fuel plants can be retired early in a just and affordable manner—a win for climate and a win for communities," he added.
ETM is a scalable, collaborative initiative that leverages a market-based approach to accelerate the transition from fossil fuels to clean energy. It will use concessional and commercial capital to retire or repurpose coal and other fossil fuel plants on an accelerated schedule and help direct investments toward reliable and affordable clean energy.
The framework agreement is subject to the conclusion of due diligence including environmental, social, and just transition reviews. The framework agreement is also subject to the results of an ongoing study of the technical and financial impact of the early closure of the plant on PLN’s electricity system—currently being undertaken by PLN and ADB.
The agreement confirmed the parties will continue discussing the financing scheme for the early retirement of Cirebon-1, as well as the impact of its early retirement on PLN’s plan to meet power demand through more clean energy or renewable energy generation.
So far, ADB’s ETM program is active in five countries: Indonesia, Kazakhstan, Pakistan, the Philippines, and Viet Nam, with ETM in Indonesia at the most advanced stage. It is also considering transactions in two other countries. (WHY)
