Sembcorp Industries (Sembcorp) has announced the formation of a joint venture between its wholly-owned subsidiary, PT Sembcorp Renewables Indonesia, and PT PLN Nusantara Renewables, a 99%-owned subsidiary of PT PLN Nusantara Power. This joint venture aims to construct and develop a large-scale integrated project comprising 50MW of solar capacity and 14MWh of battery energy storage system (the Project) in Nusantara, Indonesia.
The joint venture, with PT Sembcorp Renewables Indonesia holding 49% and PT PLN Nusantara Renewables holding 51%, will supply power to state-owned utility provider PT PLN (Persero) through a 25-year Power Purchase Agreement (PPA). The Project is expected to generate up to 93GWh of clean energy annually for Nusantara and the East Kalimantan province, which is equivalent to avoiding over 100,000 tonnes of carbon emissions per year or removing approximately 20,000 cars from the roads annually.
This Project marks Sembcorp’s initial foray into utility-scale solar development in Indonesia, a country with significant renewable energy potential. It builds upon a joint development study agreement signed with PT PLN (Persero) in October 2023 regarding the export of green hydrogen from Indonesia to Singapore. With this addition, Sembcorp’s gross renewables capacity globally stands at 13.9GW, including a pending acquisition of 245MW.
The signing of the PPA is not expected to have a material impact on Sembcorp’s earnings per share and net tangible asset value per share for the financial year ending December 31, 2024.
