Sembcorp Industries (Sembcorp) has announced that its wholly-owned subsidiary, PT Sembcorp Renewables Indonesia, has formed a joint venture with PT PLN Nusantara Renewables, a subsidiary 99%-owned by PT PLN Nusantara Power. This collaboration aims to build and develop a significant integrated project in Nusantara, Indonesia, consisting of a 50MW solar power facility and a 14MWh battery energy storage system.
The joint venture will see PT Sembcorp Renewables Indonesia holding a 49% stake, while PT PLN Nusantara Renewables will hold the remaining 51%. The project is set to supply power to the state-owned utility provider PT PLN (Persero) under a 25-year power purchase agreement (PPA). The initiative is expected to generate up to 93GWh of clean energy annually, serving the Nusantara region and East Kalimantan province. This is projected to offset over 100,000 tonnes of carbon emissions each year, which is comparable to removing approximately 20,000 cars from the roads annually.
This project marks Sembcorp’s inaugural venture into utility-scale solar development in Indonesia, a country with vast renewable energy potential. It builds upon the joint development study agreement signed with PT PLN (Persero) in October 2023, focusing on the export of green hydrogen from Indonesia to Singapore. With the inclusion of this project, Sembcorp’s global gross renewables capacity reaches 13.9GW, which includes a pending acquisition of 245MW.
Sembcorp has stated that the signing of the PPA is not expected to significantly impact the company’s earnings per share or net tangible asset value per share for the financial year ending December 31, 2024.
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