ENGIE signs US$1.25 B of PV and biomass agreements in Indonesia

ENGIE Group has signed three partnership agreements in Jakarta to develop, co-finance, build, operate and maintain microgrid and other renewable energy projects in various parts of Indonesia, for a total value of US$1.25 billion over the next five years. Namely the agreements are the following: 

• ENGIE and Sugar Group Companies to develop various renewable energy projects:

The agreement between ENGIE and Sugar Group Companies is for a joint investment of US$1 billion over the next five years to develop photovoltaic power plants and biomass power plants, with a total power generation capacity of 500 MW in Sumatera and Eastern Indonesia. The projects will significantly contribute to the implementation of the national program to reduce greenhouse gases and climate change, with an estimated carbon avoidance of 1.5 million ton of CO2e per annum.

The solar parks in Sumatra and Eastern Indonesia will have a total power generation capacity of 300 MW and will include a 140 MW solar park in the province of Lampung, making it one of the largest solar power facilities in Southeast Asia.

Meanwhile, the biomass power plants with a total power generation capacity of 200 MW will use agricultural waste as well as land clearing material, thus enabling Indonesia to achieve its renewable energy goals and reducing pollution from land clearing activities.

• ENGIE and Electric Vine Industries on microgrid development:

In this partnership agreement, ENGIE and Electric Vine Industries plan to jointly develop, finance, build, operate and maintain photovoltaic smart microgrids, providing sustainable 24-hour power for 3,000 villages in the Province of Papua over a 20-year period. With this new project, approximately 2.5 million people across Papua will be able to enjoy clean and reliable energy without interruption. The total investment is expected to be US$240 million over the next five years.

• ENGIE and PT Arya Watala Capital to develop solar power plants:

In signing this partnership agreement, ENGIE and PT Arya Watala Capital, have committed to jointly invest US$15 million over the next three years to develop a total power generative capacity of up to 10 megawatt peak (MWp) in East Nusa Tenggara, the southernmost province of Indonesia. The projects will be located in ten different areas in the province within the major islands such as West Timor, Flores and Sumba.

Didier Holleaux, Executive Vice President of ENGIE Group, said:

“These three partnership agreements reaffirm our commitment to Indonesia to provide access to energy for all. The projects will be a significant step towards Indonesia’s goal to reduce the country's dependence on fossil-based energy sources, and to provide 97% of the population with electricity by 2019. Our strategy is to work through an ecosystem of partners to co-develop and scale renewable energy and innovative low-carbon technology solutions to meet the country’s unique energy challenges.”