Filipino-owned solar developer Solar Philippines (SP) and Indonesian oil giant Medco Energi have joined forces to sign a 20-year power purchase agreement (PPA) with PLN, Indonesia’s state-owned electricity company. SP and Medco Energi will build two solar farms with a total capacity of 50 MW for PLN.
SP and its partner Medco will supply PLN with power from a 25 MW solar farm in East Bali and another 25 MW solar farm in West Bali, which would be the largest ground-mounted solar project in Indonesia to date. Both solar plants are expected to start construction in 2023.
With a population of 276 million, Indonesia ranks fourth in the world and is the largest economy in Southeast Asia. The country is targeting the addition of 4.68 GW of solar power by 2030 to help it phase out fossil fuels and achieve net zero by 2060.
However, the country has one of the world’s lowest solar capacity per capita estimated at less than 300 MW resulted from low power price and scarcity of land in the most populous island of Java. The two solar power plants are thus expected to boost Indonesia’s solar PV capacity once they come into operation.
SP holds a 49% stake in this joint venture with Medco. The company noted that it has granted its recently listed subsidiary Solar Philippines Nueva Ecija Corporation (SPNEC) the right to subscribe for shares in the joint venture, subject to regulatory clearance from the PLN. And SPNEC intends to do an asset-to-share swap with its parent company Solar Philippines, which will allow it to develop a 10 GW solar scheme.
