The Asian Development Bank (ADB) has approved a US$600m financial assistance package for Indonesia's national power utility PT Perusahaan Listrik Negara (PT PLN) to upgrade its power transmission and distribution grid in Sumatra (Indonesia) through 2019.
Rapid electricity consumption growth in Sumatra and Java is increasing pressure on the power grids and these two islands have recently experienced blackouts. The funds will help finance enhancements to existing 150 kV transmission lines, extension of substations, and the installation of new and upgraded equipment. PLN will also use the funds to expand and reinforce the medium-voltage and low voltage networks, including the installation of distribution transformers, service connections, and customer meter boxes.
These improvements will help Sumatra achieve an electrification rate of 90% by 2019 and support the overall government target of achieving universal access to electricity by 2024, from the current national rate of around 84%.