ENGIE seals three deals with Indonesia for microgrid, renewable projects

The deal is owrth US$1.25b over the next 5 years.

ENGIE Group, a global energy player, signed three partnership agreements in Jakarta to develop, co-finance, build, operate and maintain microgrid and other renewable energy projects in various parts of Indonesia, for a total value of USD 1.25 billion over the next five years.

The three partnership agreements were signed as part of French President Hollande’s visit to Southeast Asia, covering Singapore, Malaysia and Indonesia, from 26 to 29 March 2017. 

The agreement between ENGIE and Sugar Group Companies is for a joint investment of USD 1 billion over the next five years to develop photovoltaic power plants and biomass power plants, with a total power generation capacity of 500 megawatts in Sumatera and Eastern Indonesia.

The projects will significantly contribute to the implementation of the national program to reduce greenhouse gases and climate change, with an estimated carbon avoidance of 1.5 million ton of CO2e per annum.

The solar parks in Sumatera and Eastern Indonesia will have a total power generation capacity of 300 megawatts and will include a 140-megawatt solar park in the province of Lampung, making it one of the largest solar power facilities in Southeast Asia.

Meanwhile, the biomass power plants with a total power generation capacity of 200 megawatts will use agricultural waste as well as land clearing material, thus enabling Indonesia to achieve its renewable energy goals and reducing pollution from land clearing activities.

ENGIE and Electric Vine Industries also plan to jointly develop, finance, build, operate and maintain photovoltaic smart microgrids, providing sustainable 24-hour power for 3,000 villages in the Province of Papua over a 20-year period. With this new project, approximately 2.5 million people across Papua will be able to enjoy clean and reliable energy without interruption. The total investment is expected to be USD 240 million over the next five years.

ENGIE and PT Arya Watala Capital, have committed to jointly invest USD 15 million over the next three years to develop a total power generative capacity of up to
10 megawatt peak (MWp) in East Nusa Tenggara, the southernmost province of Indonesia. The projects will be located in ten different areas in the province within the major islands such as West Timor, Flores and Sumba.