(Photo: Solar Philippines)
Energy firm Solar Philippines announced that its Jakarta-based partner has secured a loan to finance the largest ground-mounted solar project in Indonesia.
The company said that its joint venture partner, Medco Energi, Medcosolar Bali Timur, signed a loan agreement with state-run Bank Negara Indonesia (BNI) for the development of a 25 MW solar farm in Kubu, Karangasem Regency, East Bali.
BNI is focused on eco-friendly projects to enhance the green energy transition in Indonesia, as well as support Medco Power’s target of a long-term value of renewable energy, according to Solar Philippines.
Constructions for the East Bali project started in 2023, with an estimated value of $20 million. This is funded through BNI’s combined credit facility and equity invested by the joint venture.
The initial 25 MW joint venture operations are set to commence by the end of 2024, with another 25 MW project scheduled for the following year.
Solar Philippines began developing solar projects in Bali in 2017. By 2019, they had partnered with Medco to submit a bid in the first competitive auction for utility-scale solar conducted by Perusahaan Listrik Negara (PLN).
After achieving success with various international power companies, the joint venture secured both the East and West Bali projects, each with a capacity of 25 MW. The power purchase agreement (PPA) was inked by 2022.
Another partner PTMS Bali Barat is currently pursuing another 25 MW solar farm in West Bali, bringing the Bali projects a total of 50 MW worth of clean energy.
Indonesia currently has one of the lowest solar capacities per capita globally, with only 500 MW of solar power serving its population of 279 million people.
“This is attributed to low power prices, and the limited availability of land in the most populous island of Java, with challenges similar to developing solar in Luzon,” Solar Philippines explained.
