IFC, Asia Green Capital : co-developing the first wind-power project in Indonesia
The International Finance Corporation (IFC), a member of the World Bank Group, and Asia Green Capital Partners Pte Ltd, a renewable-energy developer and investment company, have taken another step in co-developing the first wind-power project in Indonesia’s South Sulawesi province to help the country increase its clean-energy supply and stimulate the local economy.
As part of celebrations for the 70th anniversary of Indonesia’s Independence, PT EnergiAngin Indonesia – a subsidiary of Indo Wind Power Holdings Pte LTD that is wholly owned by Asia Green Capital Partners – and The Government of South Sulawesi recently signed a memorandum of understanding to develop the 62.5 MW Jeneponto 1 wind farm. It will be tied to the South Sulawesi electricity grid and is expected to produce a net annual energy yield exceeding 200 GW per hour – enough electricity to supply to more than 450,000 people and help avoid 120,000 tons of carbon dioxide emissions a year.
“Being one of the first large-scale wind projects in Indonesia, Jeneponto1 will set a milestone in the country’s renewable-energy sector once its completed, “said EdgareKerkwijk, Managing Director of Asia Green Capital Partners in a statement. “We are grateful for the support of the Governor of South Sulawesi and IFC and hope to complete proprietary work for the project by the end of this year.”
The Jeneponto 1 Project will help the Indonesian government move closer toward its goal of increasing the country’s electrification ratio to 91 percent from 65 percent by 2019 and channeling greater investments into the clean energy sector to diversify its energy sources and reduce carbon emissions. The wind farm can also stimulate the South Sulawesi economy and create jobs.
IFC is funding the project – its first wind investment in East Asia – through IFC IntraVentures, a US$ 150 million global infrastructure development fund that aims to increase the pipeline of bankable projects in developing countries. Combining early-stage risk capital and experienced project development support, the fund is designed to addres key constraints to private investments in infrastructure development in frontier markets.
“IFC support to Asia Green Capital Partners and the Jeneponto 1 wind farm reflects our commitment to helping the Indonesian government increase a reliable electricity supply to more Indonesians, particularly in the eastern part of the country. Said Sarvesh Suri, IFC’s country Manager for Indonesia. “In addition, the project will provide a clean-energy source for the South Sulawesi grid, reducing the dependency on expensive and volatile fossil fuels and avoiding carbon emissions.”
Indonesia has potential resources to generate around 9,000 MW of wind power, but the existing installed capacity is only 1.9 MW. The country still struggles with one of the lowest electricity supply rates in Southeast Asia – around 30 percent of the population has no access to a reliable source of electricity.
Following the launch of this initiative, Asia Green Capital Partners plans to expand its efforts to other renewable-energy projects across Indonesia and Southeast Asia, including Jeneponto 2 in South Sulawesi and 20 MW wind farm in West Timor.
Source : Petromindo Volume 54 | September 8 – October 8