28 Mar 2022

Solar Philippines Signs Deal for 50MW Solar Farm in Indonesia

28 Mar 2022  by   
The project is slated to be the largest ground-mounted solar project in the country.

Solar Philippines, through its joint venture (JV), Medco Energi, has signed 20-year power purchase agreements (PPAs) with Indonesia’s state utility PLN for a 50-megawatt (MW) solar projects.

Of the 50MW, 25MW will be located in East Bali, whilst the other 25MW is in West Bali. Solar Philippines noted that to date, this is expected to be the largest ground-mounted solar project in Indonesia.

Discussions on the Bali solar project started in 2017, but it was not until 2019 that Solar Philippines submitted a bid in PLN’s first competitive utility-scale solar auction through Medco. The PPA was signed last 24 March, with a schedule to begin construction in 2023.

Solar Philippines founder Leandro Leviste said that whilst the project is neither financially significant nor within its strategic focus, it proves the company’s capacity in two areas.

“First, that SP is able to develop projects, form JVs, and win PPAs. If we can do this in Indonesia, then we should do so all the more in the Philippines, under the same model of winning projects with JVs,” he said.

“Second, that Solar Philippines Nueva Ecija Corporation (SPNEC) has opportunities even beyond what has been factored into the share swap valuation. While the project development business is full of challenges, we are working so that, in the end, we may exceed expectations.”

Indonesia has one of the lowest solar capacity per capita with less than 300MW of operational solar for a population of 276 million. This was linked to low power prices, and the scarcity of land in Java.

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