World Bank to finance solar-powered homes

World Bank to finance solar-powered homes

WASHINGTON (DPA): The World Bank said Wednesday it would provide US$44.3 million to help finance construction of solar powered homes in Indonesia, the first such project in the developing world.

The project aims to provide solar energy to 35 million Indonesians in rural communities, to help wean them from unsafe or polluting sources of energy such as candles, kerosene, flashlights and diesel, the bank said.

Conventional power grids are impracticable because of the geographical dispersion and sharp urban-rural differences inherent throughout Indonesia, where 115 million people live without adequate electricity, the bank said.

The project will help the environment by reducing dependence on fossil fuels and cutting carbon dioxide emissions, the bank said. It will provide economic benefits by promoting private sector involvement and strengthening the country's electric power infrastructure.

The total project is expected to cost US$118 million. The bank's contribution will include a loan of $20 million and a grant of $24.3 million from its Global Environment Facility trust fund. About 57 percent of the project's costs will be borne by the families receiving the solar power units, the bank said.