World Bank Supports Improved Capacity in Hydropower Plant in Indonesia
27 May 2011: The World Bank approved a US$640 million loan¬†to build a pumped storage system in Indonesia's Upper Cisokan Pumped Storage Hydropower project, to¬†allow the power plant to supply electricity in peak season.
Pumped storage systems work using two water reservoirs built at differing heights. Energy¬†is stored by using pump turbines to transfer water from the low to the high reservoir, during off-peak hours. During periods of peak demand, the stored water in the high reservoir is released through turbines to the low reservoir for hydroelectric power generation. As a result of this project, Indonesia will be able to transform the cheap electricity surplus generated during off-peak hours into valuable peak energy. The total cost of the project will be US$800 million. [World Bank Press Release]