Solar Philippines announced that its Jakarta-based partner has secured a loan to finance the construction of Indonesia's largest ground-mounted solar project.
The Leviste-led firm stated that its joint venture partner, Medco Energi (Medco), PT Medcosolar Bali Timur, signed a loan agreement with state-run Bank Negara Indonesia (BNI) for the development of a 25-megawatt solar farm in Kubu District, Karangasem Regency, East Bali.
According to Solar Philippines, BNI is focused on eco-friendly projects to boost the green energy transition in Indonesia, as well as support Medco Power’s target of a long-term value of renewable energy (RE).
Constructions for the East Bali project began last year, with an estimated value of $20 million or around P1 billion. This is funded through BNI’s combined credit facility and equity invested by the JV.
Within the $20 million, $14 million of the said project is carried out through a loan.
The first 25 MW joint venture operations will begin by yearend 2024, which will be followed by another 25 MW project by next year.
Solar Philippines has showcased its clean energy support to Indonesia for the past seven years. In 2017, they started developing Bali solar projects.
By 2019, they were able to partner with Medco to submit a bid in the first competitive auction for utility-scale solar of State Electricity Co. or Perusahaan Listrik Negara (PLN).
After succeeding with other international power companies, the JV was able to obtain the East and West Bali projects at an equal 25 MW capacity.
The power purchase agreement (PPA) was signed by 2022.
According to the RE firm, they own 49 percent of PT Medcosolar Bali Timur and another 49 percent ownership of PT Medco Solar Bali Barat (PTMS).
PTMS Bali Barat is currently pursuing another solar farm in West Bali at a total capacity of 25 MW, bringing the Bali projects a total of 50 MW worth of clean energy.
Medco Energi currently stands as the largest independent oil and gas exploration and production in the country.
By far, Indonesia has one of the lowest solar capacities per capita in the world, having a total of 500 MW of solar servicing 279 million Indonesians.
“This is due to low power prices, and the scarcity of land in the most populous island of Java, with challenges similar to developing solar in Luzon,” Solar Philippines explained.