Indo Wind Power Holdings, a subsidiary of Asia Green Capital Partner, has signed an engineering, procurement and construction (EPC) contract with Vestas for the 62.5 MW Jeneponto 1 Indonesian wind farm.
Additionally, Asia Green Capital Partner has plans to achieve financial closure for the project in the first quarter of 2016.
The total project investment is estimated at US$170 million. The project will be funded 25% through equity from the International Finance Corp (IFC) and Asia Green Capital, while the remaining funds will be raised through loans.
The project will be tied to the South Sulawesi electricity grid and is expected to produce a net annual energy yield exceeding 200 gigawatts per hour – enough electricity to supply to more than 450,000 people. It will comprise 25 x 2.5MW turbines, with construction work expected to begin in May 2016.
Jeneponto 1, which will be the the first large utility-scale wind farm in the country, will help the Indonesian government move closer toward its goal of increasing the country’s electrification ratio to 91% from 65% by 2019 and channeling greater investments into the clean-energy sector to diversify its energy sources and reduce carbon emissions.