Solar Philippines has announced that its partner in Jakarta has secured financing for the construction of Indonesia’s largest ground-mounted solar project.
The company, led by Leviste, revealed that its joint venture partner, Medco Energi (Medco), PT Medcosolar Bali Timur, has entered into a loan agreement with Bank Negara Indonesia (BNI), a state-run bank, to develop a 25-megawatt solar farm in Kubu District, Karangasem Regency, East Bali.
Solar Philippines highlighted that BNI is prioritizing environmentally friendly projects to support Indonesia’s green energy transition and Medco Power’s renewable energy (RE) objectives.
Construction for the East Bali project commenced last year, with an estimated value of $20 million or approximately P1 billion. Funding for this project is sourced from BNI’s combined credit facility and equity investment from the joint venture, with $14 million of the project financed through a loan.
The first phase of the joint venture, a 25 MW solar farm, is set to commence operations by the end of 2024, followed by another 25 MW project the following year.
Solar Philippines has been actively involved in supporting clean energy initiatives in Indonesia for the past seven years, beginning with the development of solar projects in Bali in 2017. In 2019, they partnered with Medco to participate in the first competitive auction for utility-scale solar projects with State Electricity Co. (PLN). Subsequently, they secured the East and West Bali projects, each with a capacity of 25 MW, through the joint venture.
The power purchase agreement (PPA) for these projects was signed in 2022. Solar Philippines holds a 49 percent stake in PT Medcosolar Bali Timur and PT Medco Solar Bali Barat (PTMS), which collectively represent a 50 MW capacity in Bali.
Medco Energi is currently the largest independent oil and gas exploration and production company in Indonesia. Despite being one of the most populous countries, Indonesia has one of the lowest solar capacities per capita globally, with only 500 MW of solar serving its 279 million inhabitants. This is attributed to low power prices and land scarcity, particularly in densely populated areas like Java.
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