ADB Loan to Help Power Further Growth in Bali

The inaugural loan of the ASEAN Infrastructure Fund will connect rural households in Bali to the grid and help power the tourism industry.

MANILA, PHILIPPINES – The Asian Development Bank (ADB) will assist in bringing more reliable and affordable access to electricity to the island of Bali with a $224 million loan for a transmission project that will connect rural households to the grid, and help power the tourism industry.

“A more reliable power supply should allow greater growth in the industrial and commercial sectors, particularly in tourism, which should in turn create jobs, especially for low-income groups,” said Aruna Wanniachchi, Senior Energy Specialist in ADB’s Southeast Asia department.

The current electrification ratio in Bali is 69%, with the commercial sector accounting for about 46% of total energy consumption on the island. Perusahaan Listrik Negara (PLN), the government-run power authority, relies mainly on expensive and polluting diesel-based generation to supply electricity to Bali.

The Java-Bali 500-Kilovolt Power Transmission Crossing Project will help transmit power from Java to Bali using 220 kilometers of extra high voltage lines with the capacity to transmit 1,500 megawatts of power. It will also extend a 500/150 kilovolt (kV) substation in East Java and construct a new 500/150 kV substation in Antosari, Bali, as well as upgrade 11 150/20 kV substations.

The project is expected to benefit the entire population of 4 million people who live in Bali, of which 20% are below the national poverty line. The development of substations along the transmission line will ensure improved access to local rural communities in the project area.

The Java-Bali system is currently linked by two 150kV undersea cables with a total capacity of 200 megawatts (MW), with another two undersea cables being installed by PLN to add an additional 200 MW by 2014. The Java-Bali project will build an overhead transmission line crossing involving two towers that will be the world’s tallest power pylons. An overhead crossing was chosen due to its reduced environmental and social impacts and higher costs involved with undersea cables and their installation.

This power transmission crossing project will receive a $25 million loan from the ASEAN Infrastructure Fund. The remaining $161 million of the $410 million project will be financed by the government.