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Research Article | Volume 4 Issue 2 (July-Dec, 2023)
Improvement of Geothermal Project Economic Indicators through Green Financing and Additional Value from Carbon Trading (In The Case Of Project X, Sumatra – Indonesia)
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Under a Creative Commons license
Open Access
Published
Sept. 10, 2023
Abstract

In relation with massive geothermal future development, this research will discuss about the relation between Geothermal Energy, Environment Social and Governance (ESG) and Green Financing to a Project, specifically a geothermal project. The linkage between ESG and financial performance based on studies since 2015 points to a growing consensus that good corporate management of ESG issues typically results in improved operational metrics. Moreover, the carbon credit available for trading will also be taking into account, to look into the added value from carbon trading for the asset valuation to boost investor attractiveness to renewable energy. The correlation of geothermal project with ESG and financial performance by the possibility of positive impact of green financing method to renewable energy method and added value from carbon trading, this research will focus on the financial investment indicators after financing options application such soft loan for a certain geothermal project using discounted cash flow method, to see the investment indicators pre and post green financing through a soft loan compared to usual financing method on the certain project which is Project X, Indonesia. Based on the research, the implementation of lower loan interest to stimulate the development of Geothermal Project which by the more positive investment indicators will help the decision maker to support the implementation and investment execution. Carbon trading calculation also add value to the asset to USD 10.5 Million. The positive investment indicators and additional value will help decision maker to support the implementation and investment execution on Project X as well as increase investor attractiveness to geothermal energy.

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Improvement of Geothermal Project Economic Indicators through Green Financing and Additional Value from Carbon Trading (In The Case Of Project X, Sumatra – Indonesia) © 2026 by Jene Lokasthiti Az, Erman Arif Sumirat, Sylviana Maya Damayanti licensed under CC BY-NC-ND 4.0
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Himalayan Journal of Economics and Business Management open access articles are licensed under a Creative Commons Attribution-Share A like 4.0 International License. This license lets the audience to give appropriate credit, provide a link to the license, and indicate if changes were made and if they remix, transform, or build upon the material, they must distribute contributions under the same license as the original.
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