Solar Philippines and Indonesia’s Medco Energi, through their joint venture firm PT Medcosolar Bali Timur, signed a $14-million loan agreement with Bank Negara Indonesia (BNI) for the construction of a 25-megawatt solar farm in Kubu District, Karangasem Regency, East Bali.
This would be the largest ground-mounted solar project in Indonesia.
Solar Philippines founder and CEO Leandro Leviste signed the loan agreement alongside BNI Senior Vice President Ditya Maharhani Harninda, Medco Power President and CEO Eka Satria and Medco Power Chief Financial Officer Myrta Sri Utami at the Medco Power office in Jakarta.
BNI representatives said the bank is focused on actively financing projects that are environmentally friendly to support the green energy transition in Indonesia. This project is in line with Medco Power’s mission to create long-term value in renewable energy.
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Solar Philippines owns 49 percent of PT Medcosolar Bali Timur. It also owns 49 percent of PT Medco Solar Bali Barat, which is developing another 25- MW solar farm in West Bali, bringing the total capacity of the Solar Philippines joint with Medco in Bali to 50 MW.
Medco Energi is the largest independent oil and gas exploration and production company in Indonesia.
Two 25-MW Bali projects
In 2017, Solar Philippines began developing its Bali solar projects and, in 2019, formed its joint venture with Medco to submit a bid in the first competitive auction for utility-scale solar of Indonesia’s state utility PLN.
The joint venture beat several international power companies to win the 25-MW in East Bali and 25-MW in West Bali, for a total of 50 MW, and signed the PPA’s with PLN in 2022.
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In 2023, PT Medcosolar Bali Timur began construction of the first 25-MW facility in East Bali. The project 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 joint venture plans to energize the first 25-MW Bali project by the end of 2024, followed by the next 25 MW for a total of 50 MW of Bali projects 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. 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.