Indonesia's geothermal capacity is getting prepped for an enormous increase.
The South-East Asian nation is filled with all the precursors for the development of an extremely strong geothermal industry, save one -- money. However, that may be changing.
Recently, the World Bank's Trust Fund Committee of the Clean Technology Fund awarded Indonesia US$400 million in funding to expand large-scale geothermal power plants. The World Bank intends for the funding to create the necessary conditions for these power plants to double their current output.
Additionally, in February, the government increased its tax incentives for geothermal projects in order to make Indonesia a more attractive investment area. Between the funding and the tax credits, companies are beginning to enter the market: Chevron Corporation (NYSE: CVX) and Tata Power Company (BOM: 500400) are currently bidding for geothermal projects, and rumors are running rampant that several U.S. companies are interested in jumping into the game.
The World Bank's investment comes just one month before Indonesia hosts the world's largest geothermal conference -- an event at which the nation hopes to raise US$12 billion in capital.
Read the full story at Geothermal Digest: Follow the money: $400 million Indonesia commitment has players scurrying
Image courtesy of Eustaquio Santimano
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