ADB and Indonesia to explore first coal utility retirement under ETM

The Asian Development Bank (ADB) and partners in Indonesia have signed a memorandum of understanding (MOU) to deliberate for the early retirement of 660 MW Cirebon-1 coal-fired power plant in West Java.

ADB’s MOU with Cirebon Electric Power (CEP); PT Perusahaan Listrik Negara (Persero), Indonesia’s state-owned power utility; and the Indonesian Investment Authority (INA) represents a major breakthrough for ADB’s energy transition mechanism (ETM), which seeks to use blended finance to help Asia and the Pacific accelerate the retirement of power plants that use coal and other fossil fuels and replace them with cleaner, more renewable sources of energy. The final structure of the transaction will determine when the plant will be retired, and this will be negotiated. The power plant is currently contracted to deliver electricity until 2042, by which time the plant will be 30 years old.

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