Power producer Quantum Power Asia and German solar developer Ib vogt GmbH will jointly invest roughly USD 5 billion (EUR 4.64bn) in a project to build a solar park of over 3.5 GW on Indonesia’s Riau Islands and export electricity to Singapore.
The companies will realise the project through a joint venture dubbed Anantara Energy Holdings Pte Ltd, Quantum said on Tuesday. The entity has already applied for licenses to import electricity into Singapore from countries in the region, including Indonesia, under a call issued by Singapore's Energy Market Authority (EMA).
A joint development agreement and a Memorandum of Understanding (MoU) with Riau Islands Province were signed earlier on Tuesday.
Quantum and Ib vogt’s plan involves the construction of a huge solar farm with 12 GWh of battery storage capacity, spanning an area of over 4,000 ha (9.900 acres). Once fully in operation in 2032, the complex will be able to export up to 4 TWh of electricity to Singapore annually through a subsea cable network. It is estimated that the solar complex would be able to meet about 8% of the country’s annual power requirements.
Singapore-based Anantara has already secured power off-take deals with corporate clients in the country for more than 4 TWh per year. The JV will work with the Indonesian unit of Singaporean electricity retailer Union Energy Corp to handle the connectivity of the imported power.
Singapore aims to become carbon neutral by 2050.
(USD 1.0 = EUR 0.927)
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