Engie vice president director Didier Holleaux, right, shakes hands with Arya Watala Capital chief executive Aria Witoelar after the signing of a cooperation agreement. (Photo courtesy of Engie)
France's Engie Inks Deals Worth More Than $1b With Indonesian Renewables Partners
BY :SARAH YUNIARNI
MARCH 30, 2017
Jakarta. Engie has signed partnership agreements worth more than $1 billion with local partners in Indonesia to tap renewable energy in the archipelago, the France-based multinational utility company said in a statement on Wednesday (29/03).
Three partnership agreements were signed as part of French President François Hollande's visit to Singapore, Malaysia and Indonesia on March 26-29.
Engie, known as the largest independent electricity power producer in the world, and Indonesia's Sugar Group – one of the country's largest sugar producers – to jointly invest up to $1 billion over five years to develop photovoltaic and biomass power plants with a total capacity of 500 megawatts in Sumatra and eastern Indonesia.
The solar parks will have a combined total capacity of 300 MW. This will include a 140 MW solar park in Lampung Province, which will be one of the largest in Southeast Asia.
Meanwhile, the biomass power plants, which will have a combined capacity of 200 MW, will use agricultural waste and land-clearing material to produce electricity.
Engie, headquartered in Paris, also inked a $240 million partnership deal with Electric Vine Industries to jointly develop and operate photovoltaic smart microgrids – which convert solar energy to electricity – to supply about 3,000 villages in Papua Province.
The investment period is set to five years, but facilities may offer about 2.5 million people throughout Papua with clean and reliable energy for more than 20 years. Electric Vine is a private microgrid developer, which already operates in Papua.
Engie also signed a deal with Arya Watala Capital, a local private equity company focusing on renewable energy. The two companies committed to jointly invest up to $15 million over the next three years to develop solar power plants with a total capacity of up to 10 MW in East Nusa Tenggara.
"These three partnership agreements reaffirm our commitment to Indonesia to provide access to energy for all. The projects will be a significant step towards Indonesia's goal of reducing the country's dependence on fossil-based energy resources, and to provide 97 percent of the population with electricity by 2019," Engie Group executive vice president Didier Holleaux said in the statement.
He added that Engie seeks to help the country meet its unique energy challenges through cooperation with local partners to co-develop and scale renewable energy and innovative projects that offer low-carbon technology solutions.
As various reports have suggested that Indonesia may find itself without crude oil and coal in the next decade, the government, has laid out a target to boost the share of renewables in its energy mix to 23 percent by 2025 from just 7 percent last year.