MANILA: The Asian Development Bank (ADB) announced on Wednesday that it has approved a 470-million U.S. dollar results-based loan to Indonesia’s state-owned utility, PT Perusahaan Listrik Negara (PLN), to speed up the country’s shift to renewable energy and support its low-carbon growth goals.

The bank said the Accelerating Indonesia’s Clean Energy Transition Program-Phase 1 will help develop solar and wind power projects, reinforce grid infrastructure across Java-Madura-Bali, Sumatra, and Sulawesi, and strengthen PLN’s capacity to manage the energy transition.

The program could avoid up to 2.5 million tons of carbon dioxide emissions annually and advance the ASEAN Power Grid initiative by creating a more resilient national grid capable of integrating large volumes of renewable energy.

Set to be implemented from 2026 to 2031, the program includes 470 million dollars from the ADB’s ordinary capital resources and 30 million dollars from the ADB-administered funds, including the ASEAN Infrastructure Fund and contributions from the European Union and the United Kingdom under the ASEAN Catalytic Green Finance Facility.