State Department Announces $6 Billion for Geothermal in Southeast Asia
As you may have read in last week’s Energy & Environment Newsletter, the State Department has announced a new $6 billion initiative to promote and finance the development of 12 GW of geothermal resources in Indonesia. The following are some initial elements of the effort:
- The monies will come from leveraging existing financing authorities at Ex-Im, OPIC, USTDA, and State.
- The goal is to export U.S. goods and services to Jakarta, develop resources in Sumatra, and transmit the renewable power to Singapore. The Singapore government is interested in drastically reducing its coal fleet and to promote itself as a “eco-friendly” city-state.
- The underlying policy rationale surrounds overcoming the difficult FDI climate in Indonesia, which the U.S. is hoping to overcome through this initiative. This will also align with the Administration’s diplomatic Asia “pivot” efforts.
- Currently, State is looking to garner private sector interest for this initiative, and is seeking companies for a potential Southeast Asia due diligence mission.
- There will be a major announcement – likely by Secretary Kerry – this September at the ASEAN Summit in Brunei.