Midsummer inks Indonesia CIGS thin-film PV joint venture

The move follows last week’s news that Midsummer is abandoning its previously announced plans for a new CIGS manufacturing plant in its home country. Instead, the company said it would expand its footprint through manufacturing partnerships with companies in specific target markets worldwide, an approach that seems to be reflected in this latest announcement.

Under the deal announced today, Midsummer will supply its manufacturing equipment and other services to establish the new facility and assume a minority ownership stake in the joint venture.

Initially, PT Metalogika is targeting a production capacity of 20MW per year, with the potential to expand to 200MW annually and even to gigawatt-scale, subject to market demand. The modules will be for sale in the Indonesian market and abroad.

The initial scope of the deal consists of Midsummer’s proprietary DUO system for the production of thin-film solar cells, other manufacturing equipment and services sufficient for a 20MW per year solar cell factory.

“Our ambition is to build a long-term industrial partnership in Indonesia, combining Midsummer’s technology and manufacturing experience with Metalogika’s Indonesian industrial capabilities,” said Midsummer’s CEO, Eric Jaremalm. “We intend to start with a clearly defined 20MW industrial project, while creating the foundation from which the partnership can scale significantly as the market develops.”

Firrisky Nurtomo, president director of PT Metalogika Rekayasa Sistem, added: “Our objective is to establish advanced solar manufacturing capability in Indonesia and progressively build a locally anchored industrial ecosystem around it. One of the nearest aims is to support the country’s focus to strengthen energy independence and security. Midsummer brings not only manufacturing technology but experience, know-how and access to a wider international production ecosystem.”

Nurtomo highlighted Indonesia’s rapidly growing population and economy, and the renewable energy targets the country has set.

“The initial facility gives us a practical starting point while the longer-term roadmap provides a pathway toward significantly greater Indonesian manufacturing capacity with local components to serve the region’s potential market, in line with the recently launched US$73 billion programme by President Prabowo Subianto to build 100GWp of solar power capacity across the country and the electrification of 80,000 rural areas.”

The parties will now proceed with incorporation of the JV, finalisation of the investment and governance structure, applicable Indonesian approvals and incentives, project financing and definitive equipment and technology agreements.

‘Asset-light’ expansion

In line with its strategic change of tack announced last week, Midsummer is opting for what it calls an “asset-light” approach to expanding the global reach of its technology.

Rather than the capital-intensive model of investing in full production facilities overseas, the company is instead partnering with industrial players in target markets and supplying the necessary equipment, materials and know-how for local production of its CIGS modules.

Already, the company has been active in Colombia, where it has shipped its equipment for a local CIGS production line.