Cirebon Energy Transition Mechanism Pilot Project

The project is the first transaction under the Asian Development Bank (ADB) Energy Transition Mechanism (ETM) and involves financing the early closure of the Cirebon-1 660- megawatt coal-fired power plant (CFPP), owned by CEP, an independent power producer in West Java Province, Indonesia, which is, in turn, owned by Marubeni Corporation, Korea Midland Power Company Limited, ST International Corporation and PT Indika Energy Terbuka. By demonstrating an independent power producer's early retirement financing-inclusive of programs that promote a just and gender-equal energy transition-the project will facilitate (i) Indonesia's design, adoption and implementation of policies and strategies for coal-to-clean transition, (ii) private investor driven efforts to reduce carbon footprint, (iii) mobilization of private sector financing for the energy transition, and (iv) contribution to carbon emission reduction.