LEVISTE-LED Solar Philippines Power Project Holdings, Inc. and its partner in Indonesia have signed a $14-million (P792 million) loan deal for a 25-megawatt (MW) solar farm project in East Bali.
PT Medcosolar Bali Timur, Solar Philippines’ joint venture with Indonesian oil and gas firm Medco Energi (Medco), signed the loan agreement with Bank Negara Indonesia (BNI), the company said in a statement over the weekend.
“This project is in line with Medco Power’s mission to create long-term value in renewable energy,” Solar Philippines said.
Medco is the largest independent oil and gas exploration and production company in Indonesia.
The implementation of the solar project began last year. It is estimated to cost $20 million and is funded by a combination of BNI’s credit facility and equity invested by Medco and Solar Philippines.
The two companies formed the joint venture to submit a bid in the first competitive auction for utility-scale solar of Indonesia’s state utility PLN.
Solar Philippines owns 49% of PT Medcosolar Bali Timur. It also owns 49% of PT Medco Solar Bali Barat, which is developing another 25-MW solar farm in West Bali.
This brings the total capacity of the joint venture of Solar Philippines and Medco in Bali to 50 MW.
The joint venture plans to energize the first 25 MW by the end of 2024, while the next 25 MW is scheduled by 2025.
“Indonesia has one of the world’s lowest solar capacity per capita, with an estimated total 500 MW of solar operating in a country of 279 million people,” Solar Philippines said.
“This is due to low power prices, and the scarcity of land in the most populous island of Java, with challenges similar to developing solar in Luzon,” it added. — Sheldeen Joy Talavera
