Sembcorp Industries’ wholly-owned Indonesian subsidiary PT Sembcorp Renewables and PT PLN Nusantara Renewables, a 99%-owned unit of PT PLN Nusantara Power, have formed a joint venture to build and develop an integrated solar and battery energy storage system in Nusantara, Indonesia.

The project, comprising 50 megawatts of solar power and 14 megawatt-hours of battery, will supply power to state-owned utility provider PT PLN ( Persero ) under a 25-year power purchase agreement.

In East Kalimantan on the island of Borneo, Indonesia is developing a new capital city named Nusantara. Indonesian President Joko Widodo initiated the move to relocate the capital from Jakarta, which has become overcrowded, highly polluted, and is slowly sinking into the sea.    

The joint venture is 49% held by PT Sembcorp Renewables and 51% held by PT PLN Nusantara Renewables.

The project will generate up to 93 gigawatt-hours of clean energy to Nusantara and the East Kalimantan province annually, equivalent to avoiding over 100,000 tonnes of carbon emissions or taking approximately 20,000 cars off the roads per year.

The project marks Sembcorp’s first entry into utility-scale solar development in Indonesia, which possesses large renewable energy potential. It also builds on the joint development study agreement signed with Persero in October 2023 on the export of green hydrogen from Indonesia to Singapore.