(Jan 19): Indonesia proposed a 10-gigawatt grid connecting energy produced from rivers, wind, sun and geothermal as a pilot for the US$20 billion in climate financing that rich nations have promised the archipelago.

The government is pitching the project on Sulawesi island as its first move in the Just Energy Transition Partnership funding, Luhut Panjaitan, coordinating minister for maritime affairs and investment, said in an interview at the World Economic Forum. At the same time, Indonesia will push to retire coal plants earlier on Java, its most-populated and wealthiest island.

“You have to look at Indonesia not as one continent,” said Panjaitan. “Oversupplied electricity in Java isn’t necessarily happening elsewhere. We need a grid, so we carry from oversupplied spots to other islands.”

Sulawesi already derives about a third of its electricity from renewable sources, compared with less than 20% for Indonesia overall. Part of the push toward cleaner energy has come from the eastern island’s nickel industry, especially as electric-vehicle and battery companies seek to ensure their facilities aren’t powered by fossil fuels.

Indonesia is negotiating the details of the US$20 billion climate finance agreement signed in November. The package will come in the form of grants and loans, said Panjaitan, who has previously insisted that the borrowing cost must be lower than market rates.

“We should get interest like an AAA-rated company,” he said.“Otherwise, it’s not fair.”