Indonesia Sustainable Least-Cost Electrification-2 (ISLE-2) Project
Financing framework advancing sustainable electrification through innovative planning and internationally aligned safeguard implementation.
Indonesia Sustainable Least-Cost Electrification-2 (ISLE-2) Project
The Indonesia Sustainable Least-Cost Electrification-2 (ISLE-2) Operation is part of a World Bank’s substantive program of investments, underpinned by an active policy dialogue in support of the implementation of Indonesia’s energy transition. The ISLE-2 Operation includes (i) a program for results (PforR) component to be financed by a US$600 million IBRD loan and a US$3 million grant from the Energy Sector Management Assistance Program (ESMAP) (ISLE-2 PforR) and (ii) an Investment Project Financing (IPF) component funded by a US$10 million grant from the Green Climate Fund (GCF) (the IPF component, or the ISLE-2 Project) (together, the PforR and IPF components, forming the ISLE-2 Operation).
ISLE-2 Investment Project Financing, which is Technical Assistance activities under the IPF Component, focuses on supporting PLN to develop technical, generation planning, monitoring and E&S capacity, and finances technical and environmental and social (E&S) assessments necessary for the development and investments in transmission lines needed for RE deployment (Identified Investments). The E&S Studies will be carried out in parallel to the technical studies for each respective transmission line subproject. The result of the E&S Studies will be an input to the final version of the technical studies, while the first drafts of the technical studies will inform the E&S Studies.
