Singapore-based fund manager Equis has secured a power purchase agreement with Indonesian state-owned utility PT PLN for its 60MW Tolo Wind Farm project in Jeneponto, South Sulawesi.
The project, Equis’ first in Indonesia, is being developed by its Indonesian platform Redaya Energi, which is funded by the $1 billion Equis Asia Fund II. It will supply power to the South Sulawesi grid via a high-voltage transmission line connected to the Jeneponto substation. Construction is set to start in 2017, with commercial operations expected to begin in 2018.
Equis is currently finalising the development of several renewable energy projects in Indonesia that would require equity injections totalling $500 million over the next 24 months, it said in a statement.
“Indonesia is set for a period of rapid, sustained growth in energy demand, and the Indonesian government has set ambitious targets for renewable energy to satisfy a large share of this demand,” said David Russell, chief executive of Equis. Indonesia, which aims to have 35GW of additional power capacity by 2019, looks to produce 23 percent of it from renewables.
Equis bills itself as the largest independent renewable energy developer and investor in Asia, with more than $2.7 billion in funds under management. Other investments made through the Asia Fund II include solar platform Japan Solar, Indian infrastructure investment vehicle InfraEdge and hydro-focused business Hydreq.
In addition to its Indonesian projects, the firm currently owns a portfolio of over 3.6GW of renewable energy assets across Asia, comprising 1.2GW of wind, 1.8GW of solar and 693MW of hydro. It plans to grow the portfolio to 6GW over the next two to three years, Russell told Infrastructure Investor in an interview this March.