The Indonesian Ministry of Finance has awarded a US$380m loan to the power utility PT PLN for the construction of the 1,040 MW Upper Cisokan pumped-storage hydropower project, to be located between Jakarta and Bandung in Indonesia. In September 2021, the project received a US$380m loan from the World Bank. The project is also expected to receive support from the Asian Infrastructure Investment Bank (AIIB) with total funding of US$230m.
The power plant, currently under construction, is expected to be commissioned in 2025 and to supply power to the Java-Bali power system. The project's significant power generation capacity will enable to meet peak demand. In addition, it will provide a large storage capacity, increasing the penetration of renewable energies in the power mix; currently, over 80% of the power generated for the Java-Bali grid that supplies electricity to 70% of the country’s population comes from fossil fuels. Finally, the Upper Cisokan hydropower project will alleviate increasing transmission loads on the grid thanks to its close location to two large demand centers.