Sembcorp’s groundbreaking solar and energy storage project in Indonesia.

By Oliver Townsend Jun 6, 2024
Sembcorp to Develop First Utility-Scale Solar and Energy Storage Project in Indonesia.jpegOrginal image from:

Sembcorp Industries has announced a groundbreaking collaboration to develop the first utility-scale solar and energy storage project in Indonesia. This initiative is set to combine a 50MW solar power facility with a 14MWh battery energy storage system, with the aim of supplying power to state-owned utility provider PT PLN (Persero). The project is expected to generate up to 93GWh of clean energy annually, significantly reducing carbon emissions in the region.

Joint Venture for Sustainable Energy

The joint venture involves PT Sembcorp Renewables Indonesia holding a 49% stake, while PT PLN Nusantara Renewables will hold the remaining 51%. This collaboration marks Sembcorp’s entry into utility-scale solar development in Indonesia, tapping into the country’s vast renewable energy potential. The project builds on a previous agreement focusing on exporting green hydrogen from Indonesia to Singapore.

Environmental Impact and Expansion

By offsetting over 100,000 tonnes of carbon emissions annually, this project contributes to environmental sustainability by reducing the carbon footprint equivalent to removing 20,000 cars from the roads each year. Sembcorp’s global gross renewables capacity is set to reach 13.9GW with the addition of this project, showcasing the company’s commitment to green energy expansion.

Financial Impact and Future Outlook

Sembcorp has indicated that the signing of the power purchase agreement (PPA) is not expected to significantly impact the company’s financial performance for the year ending December 31, 2024. This strategic move aligns with Sembcorp’s vision to drive sustainable energy solutions and expand its renewable energy portfolio. The project sets a precedent for future developments in the region, highlighting the importance of innovation and collaboration in the renewable energy sector.

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