Sembcorp Industries (Sembcorp) has revealed that its wholly-owned subsidiary, PT Sembcorp Renewables Indonesia, has established a joint venture with PT PLN Nusantara Renewables, a subsidiary predominantly owned by PT PLN Nusantara Power. The partnership is focused on constructing and advancing a substantial integrated project in Nusantara, Indonesia, comprising a 50 MW solar power facility and a 14 MWh battery energy storage system.
In the joint venture, PT Sembcorp Renewables Indonesia will hold a 49% stake, with PT PLN Nusantara Renewables holding the remaining 51%. The project aims to supply electricity to the state-owned utility provider PT PLN through a 25-year power purchase agreement (PPA). The initiative is anticipated to generate up to 93 GWh of clean energy annually, benefiting the Nusantara region and East Kalimantan province. This effort is projected to mitigate over 100,000 tons of carbon emissions annually, equivalent to removing approximately 20,000 cars from the roads yearly.
This project represents Sembcorp’s first venture into utility-scale solar development in Indonesia, a nation abundant in renewable energy resources. It follows a joint development study agreement signed with PT PLN in October 2023, centered on exporting green hydrogen from Indonesia to Singapore. Including this initiative, Sembcorp’s total global renewable capacity now stands at 13.9 GW, including a planned acquisition of 245 MW.
Sembcorp has indicated that the signing of the PPA is projected to have minimal impact on the company’s earnings per share or net tangible asset value per share for the fiscal year ending December 31, 2024.
(Source: SolarQuarter)
