The US Trade and Development Agency (USTDA) has awarded a significant grant to PT Medco Power Indonesia to conduct a comprehensive feasibility study for the development of a 111-megawatt wind power plant in West Sumbawa, located in Indonesia's West Nusa Tenggara (NTB) region. The grant signifies a major step towards facilitating the replacement of highly polluting energy sources with clean and renewable power, as emphasized by the USTDA in a statement issued by the US Embassy in Jakarta earlier this week.
The grant-signing ceremony, attended by esteemed individuals including Medco President Director Eka Satria, USTDA Regional Director for the Indo-Pacific Verinda Fike, and US Embassy Jakarta Deputy Chief of Mission Michael F. Kleine, highlighted the collaborative efforts between the US and Indonesia in advancing the country's renewable energy transition.
Eka Satria, President Director of PT Medco Power Indonesia, expressed the company's commitment to supporting the Indonesian Government's climate change mitigation objectives and its pursuit of emissions reduction and net zero goals. Satria emphasized the significance of the signing in relation to Medco Power's climate change strategy and the company's dedication to developing a robust renewable energy portfolio.
USTDA Director Enoh T. Ebong expressed optimism regarding the partnership with Medco, emphasizing the potential for advancing Indonesia's clean energy transition and providing West Sumbawa communities with a sustainable and renewable source of power. Ebong anticipated strong interest from US industry players to collaborate with Medco on implementing this vital project, highlighting the flexibility and relevance of USTDA's project preparation tools in meeting Indonesia's infrastructure needs.
US Deputy Chief of Mission Michael F. Kleine underlined the United States' pride in partnering with Indonesia to promote renewable energy solutions. Kleine acknowledged the project's significance in demonstrating the US government's unwavering commitment to supporting Indonesia's clean energy transition towards achieving net zero emissions.
Valued at Rp15 billion (US$1.04 million), the grant aligns with Indonesia's clean energy transition objectives under the Just Energy Transition Partnership (JETP). The JETP, an Indonesian-led initiative, is based on the nation's ambitious climate targets. Currently, the JETP Secretariat is developing the Comprehensive Investment and Policy Plan (CIPP) to guide JETP financing over the next three to five years.
The USTDA study, funded by the grant, will encompass several crucial aspects of the wind power plant project. It will provide Medco with a comprehensive wind resource assessment, preliminary geotechnical analysis, power plant and interconnection system design, grid integration study, preliminary environmental and social impact assessment, risk assessment, cost and economic analysis, and an implementation plan. This holistic approach ensures that the project is well-prepared and aligned with sustainable practices and local considerations.
