French utility company Engie has signed three partnership agreements worth more than $1 billion with local partners in Indonesia to tap renewable energy in the archipelago. These agreements come at a time, when Indonesia is looking for partners to achieve its ambitious goal of boosting the share of renewables in its energy mix to 23 percent by 2025 from just 7 percent last year. By developing and scaling innovative renewable energy projects, the Indonesian government hopes to address the country’s energy challenges such as its dependence on fossil fuels and carbon dioxide emission.
Engie, known as the largest independent electricity power producer in the world, and Indonesia's Sugar Group – one of the country's largest sugar producers – agreed to jointly invest up to $1 billion over five years to develop photovoltaic (300 MW) and biomass power plants (200 MW) in Sumatra and eastern Indonesia.
Moreover, the French company also inked a $240 million partnership deal with Electric Vine Industries to jointly develop and operate photovoltaic smart microgrids – which convert solar energy to electricity – to supply about 3,000 villages in Papua Province. The investment period is set to five years, but facilities may offer about 2.5 million people throughout Papua with clean and reliable energy for more than 20 years. Electric Vine is a private microgrid developer, which already operates in Papua.
Engie also signed a deal with Arya Watala Capital, a local private equity company focusing on renewable energy. The two companies committed to jointly invest up to $15 million over the next three years to develop solar power plants with a total capacity of up to 10 MW in East Nusa Tenggara.
As Indonesia expands power generation from renewable energy, European companies are welcome partners. Their expertise and innovative technology solutions are needed to achieve the government’s plans to become more sovereign and clean in its power generation.