Indonesia will receive loans worth a total of $100m from the Asian Development Bank (ADB) and Agence Française de Développement to overhaul a key power distribution network.
Under the Java-Bali electricity distribution performance improvement project, the country will overhaul the overburdened distribution network of the two islands and introduce energy efficient lighting.
The overhaul will include reconfiguring electrical equipment, reconductoring or replacing old overhead distribution lines and voltage transformers, and adding new switching stations and capacitors.
The country also plans to install up to 500,000 quality compact fluorescent lamps and light emitting diodes in remote areas for saving energy and reducing emissions.
The measures will reduce peak power demand, system losses, save 400GWh or $60m a year, and decrease greenhouse gas emissions by 330,000 tons per year.
The project will in the process, free-up 200MW of distribution capacity and add about 1.2 million more users to the Java-Bali network.
ADB and the Agence Française de Développement will each provide $50m financing for the project.