Sembcorp Industries to develop solar and energy storage facility in Indonesia

Sembcorp's Woodchip Boiler Plant in Singapore. The company's Indonesia project is in line with Singapore's plan to harness regional clean energy sources.
Sembcorp's Woodchip Boiler Plant in Singapore. The company's Indonesia project is in line with Singapore's plan to harness regional clean energy sources.PHOTO: SEMBCORP INDUSTRIES LTD

SINGAPORE - Singapore-listed Sembcorp Industries will develop a large-scale integrated solar and energy storage facility in Indonesia's Batam, Bintan and Karimun (BBK) region, the company announced on Monday (Oct 25).

The sustainable energy and urban development company has signed an exclusive joint development agreement with Batam's utility company PLN Batam and Indonesian renewable energy developer Trisurya Mitra Bersama (Suryagen) to carry out the project.

The facility will have the capacity to generate 1 gigawatt-peak of solar power and consist of a large-scale energy storage system. This will support the clean energy needs of two markets, as the renewable power generated onsite will meet the clean energy needs of the local BBK communities and has been proposed to be transmitted into Singapore via subsea cables.

The signing of the agreement was held on the sidelines of the Singapore International Energy Week, during which the Singapore Energy Market Authority also announced that it will issue requests for proposals for low-carbon electricity imports into Singapore by 2035.

The project, which is expected to support about 1,000 direct and indirect jobs in Indonesia and Singapore during the construction phase, is in line with Singapore's plan to harness regional clean energy sources and could potentially contribute significantly to the Republic's transition to a clean energy future, Sembcorp said in a statement.

Sembcorp's group president and chief executive Wong Kim Yin said the project "will mark yet another step in Sembcorp's transition from brown to green, while contributing to the region's energy transition".

Sembcorp entered the Indonesian market in 1990, where it has since developed three industrial parks and brought in US$3.5 billion (S$4.7 billion) in foreign investments. It has also imported natural gas from West Natuna to Singapore since 2001 and is currently Singapore's largest natural gas supplier.

The company said: "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."

Indonesia is aiming to achieve a renewable energy mix of 23 per cent by 2025, up from 11 per cent currently. It recently announced up to 4.7 gigawatts of new solar capacity by 2030 under a national electricity procurement plan.

In the renewables space, Sembcorp is growing across ground-mounted, rooftop and floating solar photovoltaic systems. It has more than 380 MWp in solar operations as well as those under development, including the 60MWp Sembcorp Tengeh Floating Solar Farm in Singapore - one of the world’s largest inland floating solar farms.

The company now has a balanced energy portfolio of over 13GW, with more than 3.5GW of renewable energy capacity comprising solar, wind and energy storage globally. 

“As part of our strategic plan to transform our portfolio from brown to green, Sembcorp aims to quadruple our gross installed renewable energy capacity to 10GW, up from 2.6GW at the end of 2020,” the company said.