Indonesia and the ADB (Asian Development Bank), together with a private power company, have signed the first-of-its-kind deal to retire a coal power plant.
The deal was announced on Monday, on the sidelines of the G20 summit in Bali and is focused on the premature retirement of the 660-megawatt Cirebon 1 power plant in West Java.
According to the details of the memorandum of understanding (MOU) between ADB and Cirebon Electric, the plant is to be refinanced with between $250 million and $300 million on condition that it is retired 10 to 15 years prior to the end of its lifespan, which in turn is between 40 and 50 years.
If these conditions are met and Indonesia does indeed retire its first coal power plant, this may result in the reduction of 30 million metric tons of greenhouse gas (GHG) emissions.
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