October 26, 2023
JAKARTA – PT Marubeni Global Indonesia has inked a memorandum of understanding (MoU) with Singapore’s Tuas Power to export green electricity to the city state.
The US$9-billion deal was signed on Monday on the sidelines of Singapore International Energy Week, which runs until Friday.
Tuas Power, a subsidiary of China’s Huaneng Power International, will be the recipient of renewable energy hailing from a proposed solar farm developed by Marubeni Global Indonesia, a subsidiary of Wiraraja Group in Batam, Riau Islands.
The project is set to have a peak capacity of 4.1 gigawatts (GWp), with an additional 10 GWp to be stored in battery energy storage systems (BESS), as reported by Bisnis.
Marubeni Global Indonesia managing director Tjaw Hioeng emphasized that the deal represented a crucial stride in the development of renewable energy.
“The collaboration underscores our commitment to strengthen the long-term energy security, to reduce emissions and foster a healthier environment for both Indonesia and Singapore through eco-friendly electricity,” Tjaw said.
Extending beyond mere interconnectivity and cross-border electricity trade, he emphasized that the collaboration could attract greater investment coming in terms of solar photovoltaic (PV) panels, BESS and other ventures.
Tuas Power CEO and president Zhou Min expressed the firm’s eager anticipation of this partnership with Marubeni. “We are delighted to embark on this collaboration aimed at propelling the growth of renewable energy in Indonesia,” he said.
The project would unfold in two phases, with the first slated to kick off in mid-2024, said Zhou.
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The country’s solar power exports surge is closely tied to Singapore’s plan to shift its energy supply toward renewables. The city state has set its sights on importing 4 gigawatts of low-carbon electricity by 2035.
Chamber of Commerce and Industry (Kadin) Riau Islands chairman Akhmad Ma’ruf Maulana, who was present at the signing event, pointed out that this agreement positioned the province to become the largest renewable energy hub in ASEAN.
“Rather than just idly waiting [for investment to come], Kadin Batam will proactively and attentively seize the opportunity as a stepping stone for the local renewable energy industry,” Akhmad said, as reported by Kumparan.
Marubeni Global Indonesia is actively engaged in power generation, transmission, distribution and the sale of electricity from a solar power farm located within the Wiraraja Industrial Park, Batam, which is a national strategic project.
Read also: Indonesia seeks Chinese investment for energy transition
Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa previously explained that Indonesia needed around $1 trillion to achieve the goal of net-zero carbon emissions by 2060. According to the IESR research, the country needs to vastly increase the share of solar power in its overall energy supply to reach that target.
Renewable energy investment in Indonesia amounted to $527 million in the first half of 2023, which is just 29.4 percent of the full-year target of $1.79 billion, according to the Energy and Mineral Resources Ministry.
The installed renewable energy power capacity stood at 12.73 GW in mid-2023, 15 percent of the national energy capacity of 84.8 GW.