IFC and Asia Green Capital Partners to codevelop wind project in Indonesia
Asia Green Capital Partners Pte Ltd, a renewable-energy developer and investment company, has signed a MOU with the Government of South Sulawesi to develop the 62.5-megawatt Jeneponto 1 wind farm.
PT Energi Angin Indonesia – a subsidiary of Indo Wind Power Holdings Pte Ltd that is wholly owned by Asia Green Capital Partnerssigned the agreement on behalf of the private investor.
It will be tied to the South Sulawesi electricity grid and is expected to produce a net annual energy yield exceeding 200 gigawatts per hour – enough electricity to supply to more than 450,000 people and help avoid 120,000 tons of carbon dioxide emissions a year.
Edgare Kerkwijk, Managing Director of Asia Green Capital Partners, said:
“Being one of the first large-scale wind projects in Indonesia, Jeneponto 1 will set a milestone in the country’s renewable-energy sector once it is completed. We are grateful for the support of the Governor of South Sulawesi and IFC and hope to complete proprietary work for the project by the end of this year.”
The Jeneponto 1 project will help the Indonesian government move closer toward its goal of increasing the country’s electrification ratio to 91 percent from 65 percent by 2019 and channeling greater investments into the clean-energy sector to diversify its energy sources and reduce carbon emissions. The wind farm can also stimulate the South Sulawesi economy and create jobs.
IFC is funding the project – its first wind investment in East Asia – through IFC InfraVentures, a $150 million global infrastructure development fund that aims to increase the pipeline of bankable projects in developing countries. Combining early-stage risk capital and experienced project development support, the fund is designed to address key constraints to private investment in infrastructure development in frontier markets.
Indonesia has potential resources to generate around 9,000 megawatts of wind power, but the existing installed capacity is only 1.9 megawatts. The country still struggles with one of the lowest electricity supply rates in Southeast Asia – around 30 percent of the population has no access to a reliable source of electricity.
Following the launch of this initiative, Asia Green Capital Partners plans to expand its efforts to other renewable-energy projects across Indonesia and Southeast Asia, including Jeneponto 2 in South Sulawesi and a 20-megawatt wind farm in West Timor.
