Total Eren, Adaro Power, and PJBI have signed a power purchase agreement (PPA) for a 70MW wind farm with a 10MW battery energy storage system to be located in Tanah Laut, South Kalimantan, Indonesia. The project is expected to start supplying electricity in 2025 to support the government's renewable energy targets. This PPA is not only notable for its competitive pricing, but it is also expected to serve as a reference for renewable energy projects in general, according to PLN's Prasodjo.
The Tanah Laut wind power plant will use the latest wind turbine technology with a capacity of above 6MW and the battery will mitigate the wind farm's intermittency. The project's development has gone through a competitive process, out of which the consortium of Total Eren and Adaro Power was appointed as the tender winner by PLN.
“The signing of this PPA marks a significant milestone in Indonesia's journey towards greater energy security and sustainability,” said Julien Pouget, CEO of Total Eren. “We are excited to contribute to the development of Indonesia's renewable energy sector and look forward to working with our partners to bring this project to life.”
The Tanah Laut wind farm's construction phase is targeted to commence at the beginning of 2024 and projected to achieve commissioning in 2025. The PPA signing demonstrates that Indonesia is a promising investment destination for renewable energy projects for overseas investors.
“We are thrilled to partner with Total Eren and PJBI on this project, which will contribute to the development of Indonesia's renewable energy sector,” said Arya Abdi Effendi, CEO of Adaro Power. “This project aligns with our commitment to advancing Indonesia's energy transition and promoting sustainable development.”
This project sets a positive precedent for renewable energy projects in Indonesia and is expected to encourage more investment in the sector. As Indonesia continues to pursue its renewable energy targets, it will be important for the government and private sector to work together to drive the country's transition to a more sustainable future.
