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ADB eyes Cirebon-1 early retirement’s financial closure in H1 2024
The Asian Development Bank (ADB) will focus its Energy Transition Mechanism (ETM) financing program to achieve a financial close for the Cirebon-1 early retirement project transaction in the first half of 2024.
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Finance Minister Sri Mulyani Indrawati (center) attends the Asian Development Bank (ADB) Energy Transition Mechanism (ETM) partnership launching held on Nov. 3, 2021, in Glasgow, Scotland, the United Kingdom. (ADB/ADB)
T
he Asian Development Bank (ADB) is aiming to achieve a financial close for the Cirebon-1 early retirement project transaction in the first half of 2024, hoping its completion would open more doors to similar initiatives in Indonesia and other countries.
Jiro Tominaga, the ADB’s Indonesia country director, said the pioneering nature of the project would be one of the challenges of bringing this deal to financial closure next year.
“We're creating a blueprint. The first time is a challenge. It’s the work that we’re doing so others can have an easier time structuring a similar scheme,” he told reporters in Jakarta on Thursday.
“The ETM is currently focused on the Cirebon 1 early retirement project in terms of asset level of transaction,” Tominaga said.
The Cirebon 1 plant is considered a pilot of the coal plant early retirement program under the Energy Transition Mechanism (ETM), a financing platform backed by the ADB that is aimed at financing coal plant retirements and other energy-transition projects in the country.
Read also: Indonesia, ADB, owners agree to shutter first coal-fired power station early
Indonesia and the ADB have agreed on a provisional deal with the owners of the 660-megawatt (MW) Cirebon-1 coal-fired power plant to shutter it almost seven years earlier than the power purchase agreement (PPA), according to the ADB’s senior climate change energy specialist, as reported by Reuters on Dec. 3.
