Archipelago Hybrid Power Solutions

Hybrid solar-battery installations will provide clean, reliable power to remote and underserved provinces in the Indonesian archipelago

Context

Indonesia’s national electrification rate has improved rapidly (up to 89% as of figures from 2016) as a result of the government’s success with increasing power generation capacity.

There is significant variance, however, in provincial electrification rates across Indonesia. The island province of Nusa Tenggara Barat, for instance, experiences an electrification rate of only around 50%. Furthermore, energy access in island provinces such as Nusa Tenggara Barat is largely dependent on the intermittent use of diesel-based generators.

With an archipelago comprising thousands of islands, there remains a large number of island provinces in Indonesia that require an affordable and reliable source of power. InfraCo Asia’s Archipelago Hybrid Solutions project takes on the unique challenge of introducing reliable and renewable sources of power to these remote and underserved provinces in the Indonesian archipelago.

The Project

Through the Archipelago Hybrid Solutions project, InfraCo Asia looks to develop a pipeline of hybrid solar-battery installations with a total power generation capacity of approximately 140 MWp. The hybrid solar-battery solution is expected to offer a reliable, 24/7 power supply to Indonesia’s island provinces, displacing the use of costly and polluting diesel generators.

In order to establish a technical and commercial proof-of-concept, InfraCo Asia will support the construction and commissioning of the first 8MW hybrid solar-battery facility. InfraCo Asia will also support negotiations for a commercial power purchase agreement (PPA), with Indonesia’s state-owned utility company Perusuahaan Listrik Negara (PLN) as the sole off-taker. This PPA will serve as a template when negotiating off-take agreements for the hybrid solar-battery installations to follow.

The long-term objective of the Archipelago Hybrid Solutions project is to offer PLN a stable and economical power source for remote, under-electrified and lower-income island provinces in Indonesia. Successful implementation of the hybrid solar-battery solution at scale is expected to stimulate further private sector investment in Indonesia’s rural electrification sector.

Project Overview
Company
PT Hybrid Power Solutions Indonesia (HPSI) and PT Hibrid Nusantara Pertama (HNP)
Country
Indonesia
Region
Lower-income islands throughout the Indonesian archipelago
Sector
Power & Energy (Hybrid solar-battery)
Size
Pilot to be commissioned into operation: 8MW; Overall pipeline: various installations with an aggregate capacity of 120MW
Status
Under development
Timeline
    Financial close for proof-of-concept expected in May 2020
Total Project Cost
$193M
Funding Committed
$8.6M
IAI Investment
N/A
Other Shareholder(s)
Sumberdaya Sewatama (Indonesia); Powersource (Philippines)
Suppliers

Australia

  • Grid Impact Studies

Belgium

  • Feasibility Studies

United Kingdom

  • Tax Advisory

Singapore

  • Financial Audit
Development Impact
  • ~ 438,000 with improved access to power (based on completed portfolio)
  • 144 long-term jobs (based on completed portfolio)
  • 200 short-term jobs (across construction of all sites)
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