Singapore-based renewables investor Equis Energy has signed four PPAs with Indonesian utility PT PLN for a 42MW portfolio of solar projects, including the largest in the country.
The sites include three 7MW Lombok solar projects in east and central Lombok and the 21MW Minut solar project in North Sulawesi. The latter is the largest solar facility in Indonesia. Construction will begin in the coming months, with commercial operations scheduled to start by 2018.
The projects are expected to produce enough energy to power 51,000 households on an annual basis, according to Equis. The firm is working on the development of an additional 337MW of solar and 840MW of wind projects in Indonesia, out of its 6.7GW pipeline of projects under development across the Asia-Pacific region.
Indonesia is looking to build 35,000MW of power generation capacity by 2019, in order to meet a 23 percent renewable energy target. “With a rapidly expanding economy, Indonesia has made a strong commitment to renewable energy,” said David Russell, chairman of Equis.
The firm is now in the process of selling its 4.4GW of operating and under-construction assets across the Asia-Pacific region. It is understood the firm rejected a pre-emptive offer of $4.2 billion before the deadline for indicative bids was due last month.
I Squared Capital, APG, Orix Corporation and Mitsubishi Corporation are reportedly among the suitors invited to proceed in the next stage of bidding for the assets.
Equis declined to comment.