Indonesia to Develop First Co-located Solar and Battery Storage System for New Capital

Credit: Sembcorp

Indonesia’s state-owned utility, PLN, in collaboration with renewable energy company Sembcorp, will develop the country’s first co-located solar photovoltaic (PV) and battery energy storage system (BESS). The 50-megawatt (MW) solar plant, paired with a 14.2-megawatt-hour (MWh) battery system, will power Indonesia’s future capital city, Ibu Kota Nusantara (IKN), located on the island of Kalimantan.

The project, marking a significant milestone in Indonesia’s renewable energy efforts, is not only the first of its kind in the country but also the first renewable energy venture to be developed specifically for IKN. The plant, spanning 87 hectares, is expected to generate an estimated 92.8 gigawatt-hours (GWh) of renewable energy annually to support the growing needs of the new capital.

The solar facility will incorporate 114,420 bifacial solar PV modules with a 625-watt peak capacity each, alongside 126 lithium iron phosphate battery packs. It will also feature 200kW and 300kW inverters and smart transformer stations. This advanced infrastructure is designed to enhance the overall efficiency and reliability of the energy supply.

PLN, through its subsidiary PLN Nusantara Power, is the majority owner of the project, while Singapore-based Sembcorp is a joint development partner. PLN will also act as the offtaker for the energy generated. The financing for the project was facilitated by Singapore’s Infrastructure Credit Platform, Clifford Capital, and French banking institution SocGen, which served as lenders.

According to a statement from PLN, “This project represents a crucial step towards achieving our renewable energy targets and supports the development of IKN as a sustainable city for Indonesia’s future.”

The project has received legal and advisory support from the international law firm Watson Farley & Williams, which advised PLN on the development and financing aspects of the venture.

This project is a key part of Indonesia’s broader efforts to transition to renewable energy, with the country aiming to meet increasing energy demand while reducing carbon emissions.

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