Home Offshore Energy Sembcorp Industries, PT PLN Batam and Suryagen to jointly develop large-scale integrated...

Sembcorp Industries, PT PLN Batam and Suryagen to jointly develop large-scale integrated solar and energy storage project in Indonesia

– Exclusive collaboration to develop 1GWp of solar power in Indonesia’s Batam, Bintan and Karimun region
– Generation of clean energy for export to Singapore and to serve communities in Indonesia

Sembcorp Industries (Sembcorp), Batam’s utility company PT PLN Batam and Indonesian renewable energy developer PT Trisurya Mitra Bersama (Suryagen) announce today that they have signed an exclusive joint development agreement (JDA) to develop a large-scale integrated solar and energy storage project in Indonesia’s Batam, Bintan and Karimun (BBK) region.

This project consists of an approximately 1GWp of solar power generation capability and a large-scale energy storage system in BBK to support managing the intermittency for clean energy deployment and export. To support the clean energy needs of the two markets, the renewable power generated onsite will supply the clean energy needs of the local communities and is proposed to be transmitted via subsea cables into Singapore.

Minister for Energy and Mineral Resources, Republic of Indonesia, His Excellency Arifin Tasrif and Singapore’s Minister for Manpower and Second Minister for Trade & Industry Dr Tan See Leng presided over the signing by senior executives from Sembcorp, PT PLN Batam and Suryagen.

Indonesia has recently reaffirmed its commitment to achieving a renewable energy mix of 23% by 2025, up from 11% currently. Up to 4.7GW of new solar capacity by 2030 has been announced under the recently published 2021-2030 PLN Electricity Procurement Plan.

The project is a strong example of the regional collaboration needed to enhance energy resilience and sustainability. It is also in line with Singapore’s plan to harness regional clean energy sources, and could potentially contribute significantly to Singapore’s transition to a clean energy future.

This project is expected to support about 1,000 direct and indirect jobs in Indonesia and Singapore during the construction phase. The project is also expected to enhance the skills of local engineers in Indonesia to operate large-scale renewable energy infrastructure projects.

Wong Kim Yin, Group President & CEO, Sembcorp Industries said: “Together with our Indonesian partners, PT PLN Batam and Suryagen, we are breaking new ground as we co-develop large-scale renewable energy projects to advance clean energy goals. This project will mark yet another step in Sembcorp’s transition from brown to green, while contributing to the region’s energy transition.”

Nyoman S. Astawa, President Director, PT PLN Batam, said: “As PT PLN Batam begins our own transition journey, this joint development will enable us to build our know how in developing a large-scale renewable power plant so that we can continue to contribute to more such clean energy projects in Indonesia.”

Benjamin Subrata, President Director, PT Trisurya Mitra Bersama (Suryagen), said: “Sembcorp and PT PLN Batam are our great positive enablers in realising our major undertakings in the renewable energy space in Batam and possibly throughout Indonesia. Together we are enjoying the journey in this interesting time of our two nations’ energy transition.”

Sembcorp entered the Indonesian market in 1990 through its urban development business. The company has developed three industrial parks, and brought in US$3.5 billion (approximately S$4.7 billion) of foreign investments, creating jobs for almost 100,000 people. Since 2001, Sembcorp also imports natural gas from West Natuna to Singapore and is currently Singapore’s largest natural gas supplier.

Sembcorp has been a long-term partner to Indonesia and aims to develop more renewable energy projects in the market to contribute to Indonesia’s energy transition.