New Indonesia-focused joint venture to invest US$500m in C&I solar market

A rooftop commercial and industrial PV project from Fourth Partner Energy in India. Image: Fourth Partner Energy via Twitter.

Indian solar firm Fourth Partner Energy has created a joint venture (JV) with coal producer Indika Energy to develop commercial and industrial (C&I) PV projects in Indonesia.

Called PT Empat Mitra Indika Tenaga Surya (EMITS), the JV aims to become a one-stop-shop renewables platform for Indonesia’s C&I sector, with plans to invest more than US$500 million in the country by 2025.

With a current portfolio of 550MW of solar in India, having executed projects for clients such as Unilever, Schneider Electric and Skoda, Fourth Partner Energy sees the JV as an “important part” of its expansion into key markets in Southeast Asia, according to co-founder and executive director Vivek Subramanian. “The commercial potential for renewable energy in Indonesia is immense, as the country has a clear imperative towards aggressive decarbonisation,” he said.

Citing government figures, Fourth Partner and Indika Energy said renewables accounted for 11.5%, or around 10,467MW, of Indonesia’s total energy consumption at the end of 2020. While this represents a 2.3% increase year-on-year, it falls short of the government’s 13% target. The country is aiming to reach 23% of energy from renewable sources by 2025.

Welcoming the formation of EMITS, Indonesian Minister of Energy and Mineral Resources, Arifin Tasrif, said the government “is committed” to promoting ease of investment through regulations and policies that prioritise the clean energy transition.

“We hope that the establishment of EMITS can increase investment in the renewable energy infrastructure, be able to bring technology innovations that are more reliable, efficient, affordable and environmentally friendly as well as absorb labour and support efforts to recover the economy from the impact of the COVID-19 pandemic,” he added.

Elsewhere in Indonesia, Masdar is progressing with the development of a 145MWac floating solar plant at a reservoir in Java that will feature 350,000 modules. The Abu Dhabi-based renewables company has formed a JV with a subsidiary of Indonesia’s state electricity company PT PLN to help with areas such as permitting and land-related issues.

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