Sunseap said the solar plant and the ESS will cost $2 billion and it plans to finance the project through bank borrowing and internal resources.
The solar plant will be on Duriangkang reservoir, in the south of Indonesia’s Batam island, spanning around 1,600 hectares. The developers said that it would be the largest solar plant in the world. The Duriangkang reservoir is the largest reservoir in Batam.
Sunseap signed an agreement with Indonesia’s Batam Free Trade Area and Free Port Concession Agency (BP Batam) for the project. Sunseap will provide financing, design, development, engineering and construction services, according to a report.
Sunseap expects the solar plant to generate over 2,600GWh of electricity per year. The energy generated and stored will supply non-intermittent solar energy. Part of the green energy will be consumed within Batam and the remainder could be exported to Singapore around 50 kilometres away via a subsea cable.
The construction will start in 2022 and be completed in 2024.
James Harris of Pinsent Masons, the law firm behind Out-Law, said: “This demonstrates that notwithstanding a global pandemic, big ticket transactions can be closed. It also shows the strength of collaboration between Singapore and Indonesia in the renewable energy sector. This is a tremendous win for both Sunseap and BP Batam. It shows the potential for other similar floating solar opportunities across Association of Southeast Asian Nations (ASEAN) and beyond.”
In March, Sunseap completed its first 5MW offshore floating solar power project in the Straits of Johor.