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SOE solar energy project to cost Rp 143 trillion
The ambitious project is expected to be able to generate 1.4 gigawatts peak (GWp) of electricity
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Students and teachers take a look at a solar farm at SMP 9 state junior high school in Jakarta. The government plans to install rooftop solar panels on all assets and offices of state-owned companies across Indonesia (The Jakarta Post/Ricky Yudhistira)
T
he government plans to install rooftop solar panels on all assets and offices of state-owned enterprises (SOEs) across the country by 2025 as part of efforts to increase the renewable energy use in the country’s energy mix.
The ambitious project, which is expected to be able to generate 1.4 gigawatts peak (GWp) of electricity is estimated to cost about Rp 143 trillion (US$986 million). The estimate was made by PT LEN Industri, which will provide the technology for the master plan of the solar energy project.
"We expect to finance it from the green fund and also the SOEs' budgets. This year we hope we can start with 40 megawatts [MW]," LEN Industri Operational 1 director Linus Sijabat said recently
The green fund to which he referred as a financing option was launched by eight Indonesian banks in cooperation with the World Wide Fund for Nature (WWF) Indonesia in May last year. The banks include Artha Graha Indonesia, BRI Syariah, Bank Central Asia, Mandiri, Muamalat, Bank Negara Indonesia, West Java and Banten Development Bank and Bank Rakyat Indonesia.
"We hope to access these banks soon, to finance the rooftop projects," Linus said.
According to the LEN Industri blueprint, in the business model for this solar project about 70 percent of the funding will come from banks and the remaining 30 percent from state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI), combined with related parties and engineering, procurement and construction (EPC) contractors. A special purpose vehicle (SPV) will be formed to lead the project and deal with the SOEs.
The solar energy project will be implemented in all SOE assets all across Indonesia, covering at least 10 business sectors, from state energy giant Pertamina's fuel stations to the food-stock warehouses owned by state logistics company Bulog.
