Sembcorp Industries U96 has announced that its wholly-owned subsidiary, PT Sembcorp Renewables Indonesia, has formed a joint venture (JV) with PT PLN Nusantara Renewables, a 99%-owned subsidiary of PT PLN Nusantara Power, to build and develop a utility-scale integrated solar and energy storage project in Indonesia.
The large-scale integrated project will comprise a battery energy storage system with 50 megawatts (MW) of solar and 14 megawatt hours (MWh) of battery energy storage capacity in Nusantara.
The JV, 49%-held by PT Sembcorp Renewables Indonesia and 51%-held by PT PLN Nusantara Renewables, will supply power to state-owned utility provider PT PLN (Persero), which has committed to a 25-year power purchase agreement (PPA) to offtake the electricity generated by the project.
The project is expected to generate up to 93GWh of clean energy to Nusantara and the East Kalimantan province annually, equivalent to avoiding over 100,000 tonnes of carbon emissions per year or taking approximately 20,000 cars off the roads per year.
It also marks Sembcorp’s first entry into utility-scale solar development in Indonesia, which possesses large renewable energy potential, building on the joint development study agreement signed with PT PLN (Persero) in October 2023 on the export of green hydrogen from Indonesia to Singapore.
Including the project, Sembcorp has a gross renewables capacity of 13.9 gigawatts (GW) globally, including a 245MW acquisition pending completion.
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The signing of the PPA is not expected to have a material impact on the earnings per share and net tangible asset value per share of Sembcorp for the FY2024 ending Dec 31, 2024.
Shares in Sembcorp closed 1 cent higher or 0.2% up at $5.07 on March 8.
