Sembcorp Industries has signed an exclusive joint development agreement (JDA) with Batam’s utility company PT PLN Batam and Indonesian renewable energy developer PT Trisurya Mitra Bersama (Suryagen) on Oct 25.
Under the agreement, the companies will jointly develop a large-scale integrated solar and energy storage project in Indonesia’s Batam, Bintan and Karimun (BBK) region.
The project consists of a solar power generation capability of around 1GWp and a large-scale energy storage system in BBK to support managing the intermittency for clean energy deployment and export.
The renewable power generated onsite will supply the clean energy needs of the local communities. It is also proposed to be transmitted via subsea cables into Singapore.
Minister for Energy and Mineral Resources, Republic of Indonesia, His Excellency Arifin Tasrif and Singapore’s Minister for Manpower and Second Minister for Trade & Industry Dr Tan See Leng presided over the signing by senior executives from Sembcorp, PT PLN Batam and Suryagen.
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According to Sembcorp, the project is an example of the regional collaboration needed to enhance energy resilience and sustainability. It is also in line with Singapore’s plan to harness regional clean energy sources and could contribute to Singapore’s transition to a clean energy future.
The project is expected to support some 1,000 direct and indirect jobs in Indonesia and Singapore during the construction phase. It is also expected to enhance the skills of local engineers in Indonesia to operate large-scale renewable energy infrastructure projects.
On the collaboration, Sembcorp Industries’ group president and CEO Wong Kim Yin says, “Together with our Indonesian partners, PT PLN Batam and Suryagen, we are breaking new ground as we co-develop large-scale renewable energy projects to advance clean energy goals. This project will mark yet another step in Sembcorp’s transition from brown to green, while contributing to the region’s energy transition.”
“As PT PLN Batam begins our own transition journey, this joint development will enable us to build our know how in developing a large-scale renewable power plant so that we can continue to contribute to more such clean energy projects in Indonesia,” says Nyoman S. Astawa, president director at PT PLN Batam.
Benjamin Subrata, president director at PT Trisurya Mitra Bersama (Suryagen) adds, “Sembcorp and PT PLN Batam are our great positive enablers in realising our major undertakings in the renewable energy space in Batam and possibly throughout Indonesia. Together we are enjoying the journey in this interesting time of our two nations' energy transition.”
Shares in Sembcorp closed flat at $2.04 on Oct 25.