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Coal giant Indika says it needs $250 million for solar buildout, eyes 500 MW by 2025
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ublicly listed coal miner PT Indika Energy had said it will require US$250 million in capital expenditure to meet its target of developing 500 megawatts (MW) of solar power plant capacity by 2025.
Indika, through renewable energy joint venture Empat Mitra Indika Tenaga Surya (EMITS), aims to secure installation contracts with capacities of 80 to 100 MW in 2022 and 500 MW in 2025.
“Indika supports the national energy transition goal and [aims to] increase the competitiveness of the renewable energy industry in Indonesia,” said Azis Armand, Indika Energy’s vice president director, in a press conference on Monday.
Read also: Mining giant Indika to cut coal income to 50% with net-zero in mind
EMITS CEO Yovie Priadi said the company would sell its services to the industrial, commercial and utility sectors, including state-owned electricity company PLN.
“Indonesia, as the largest country in Southeast Asia, has great potential for developing solar power,” he said on Monday.
Indika, which earned 70 percent of its total 2020 revenue from coal sales, plans to diversify into logistics, metal mining, forest plantations and renewable energy, among other sectors.
The company formed EMITS with India-based solar energy company Fourth Partner Energy under investment firm the Rise Fund, on March 5, 2021, as part of a larger scheme to cut its coal income to 50 percent by 2025 amid growing pressure on the global coal industry.
Read also: Indika sells 70% stake in Petrosea to diversify away from coal
EMITS initially targeted the installment of 15 MW of new solar panels in 2021, 183 MWp by 2022 and 985 MWp by 2025. Its shareholders had committed $500 million to finance the projects.
The solar company plans to focus on installing solar PVs for utilities and industry in the short to medium term before expanding to the residential market in the long term.
Indika booked a net profit of $57.7 million in the January to December period of last year, compared to a $117.5 million net loss over the same period in 2020.
