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 a significant variance, however, in provincial electrification rates across Indonesia, and in some provinces, 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 168 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 hybrid solar-battery facilities with capacity of up to 28MWp. 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.

Our Impact

Impact on people:  The project will provide more reliable electricity supply to users in under-electrified and lower-income areas

Development Impact
72,000
people with improved access to electricity
1,804
Jobs created during construction
60
Jobs created during operations
SUSTAINABLE DEVELOPMENT GOAL(S)

Company

PT Hybrid Power Solutions Indonesia (HPSI) and PT Hibrid Nusantara Pertama (HNP)

Total Project Cost

US$ 193M

Country

Indonesia

Region

Lower-income islands throughout the Indonesian archipelago

Timeline

Financial close for proof-of-concept expected in May 2020

Sector

Power and energy (Hybrid solar-battery)

InfraCo Asia Funding Committed

US$ 8.44M

Other PIDG Funding Committed

N/A

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