Solar, partner sign PPA in Indonesia

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Solar Philippines is expanding its operations in Indonesia through a joint venture (JV) with Medco Energi (Medco).

Solar signed a 20-year power purchase agreement (PPA) with Medco for Indonesia’s state-owned utility firm PLN for a 25- megawatt (MW) solar farm in East Bali and another 25 MW solar farm in West Bali.

These farms are touted to be the largest ground-mounted solar projects in Indonesia to date.

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Solar Philippines said it began developing the Bali solar projects as early as 2017 after it formed the JV with Medco to submit a bid in PLN’s first competitive utility-scale solar auction in 2019, beating other international power companies.

Solar Philippines said the projects are scheduled to begin construction next year.

Solar Philippines also granted Solar Philippines Nueva Ecija Corp. (SPNEC) the option to subscribe to the latter’s share in the JV in which it holds 49 percent, subject to regulations including securing approval from PLN.

Leandro Leviste, Solar Philippines founder, said while the “project is neither financially significant” nor within their strategic focus of developing solar projects in Luzon, the Indonesian solar farms will show the companies capability to form JVs and win PPAs as well as prove that SPNEC has opportunities even beyond the factors in the recent share swap valuation.”

Leviste said Indonesia has one of the world’s lowest solar capacity per capita with an estimated less than 300 MW of operational solar for a population of 276 million due to low power prices and scarcity of land in the island of Java, similar challenges faced in developing solar in Luzon.

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