Massive Indonesian RE bid earmarks $14M

Homegrown renewable energy firm Solar Philippines and its Indonesian partners have secured a $14-million (P770 million) loan from state-owned Bank Negara Indonesia (BNI), which will cover the bulk of the required funding for the construction of the 25-megawatt (MW) solar farm in Bali, Indonesia.

The Leviste-led renewable energy company has formed a joint venture with Medco Energi and PT Medcosolar Bali Timur, to undertake the largest ground-mounted solar project in Indonesia.

Located in Kubu District, Karangasem Regency, East Bali, the $20-million project will be financed through a combination of BNI’s credit facility and equity investments from the JV members.

In a statement over the weekend, Solar Philippines founder and CEO Leandro Leviste shared a recent signing of the loan agreement with BNI senior vice president Ditya Maharhani Harninda, Medco Power president and CEO Eka Satria, and Medco Power chief financial officer Myrta Sri Utami at the Medco Power office in Jakarta.

Last year, the partnership began building the first 25 megawatts segment in East Bali, aiming to activate the first 25 MW by the end of this year.

By 2025, the total capacity of Bali’s projects is projected to reach 50 MW with the addition of another 25 MW.

Solar Philippines owns 49 percent of PT Medcosolar Bali Timur. It also owns 49 percent of PT Medco Solar Bali Barat, which is developing another 25 MW solar farm in West Bali, bringing the total capacity of the Solar Philippines JV with Medco in Bali to 50 MW.

Jakarta’s biggest

Medco Energi is the largest independent oil and gas exploration and production company in Indonesia.

In 2017, Solar Philippines kicked off the development of its Bali solar initiatives. Subsequently, in 2019, the company formed a joint venture with Medco to participate in Indonesia’s first competitive auction for utility-scale solar projects, conducted by the state utility PLN.

The joint venture successfully outbid several international power companies and secured a total of 50 MW, comprising 25 MW in East Bali and 25 MW in West Bali. The power purchase agreements with PLN were signed in 2022.

Indonesia’s solar capacity per capita is one of the lowest in the world, with an estimated total of 500 MW of solar power operating in a country of 279 million people — attributable to low electricity prices and the scarcity of land on the densely populated island of Java.