Solar Philippines said over the weekend its joint venture (JV) with Medco Energi, PT Medcosolar Bali Timur, signed a loan agreement with Bank Negara Indonesia (BNI) for a $14-million financing to fund the construction of a 25-megawatt solar farm in Kubu District, Karangasem Regency, East Bali.
The company said in a statement this would be the largest ground-mounted solar project in Indonesia. It is estimated to cost $20 million and would be funded by a combination of BNI’s credit facility and equity invested by Medco and Solar Philippines.
Solar Philippines founder and chief executive Leandro Leviste signed the loan agreement along with BNI senior vice president Ditya Maharhani Harninda, Medco Power president and chief executive Eka Satria and Medco Power chief financial officer Myrta Sri Utami at the Medco Power office in Jakarta.
BNI’s representatives said the bank actively focused on financing projects that are environment-friendly as an effort to encourage the green energy transition in Indonesia. It is in line with Medco Power’s mission to create long-term value in renewable energy.
Solar Philippines owns 49 percent of PT Medcosolar Bali Timur. It also owns 49 percent of PT Medco Solar Bali Barat, which is developing another 25-MW solar farm in West Bali, bringing the total capacity of the Solar Philippines JV with Medco in Bali to 50 MW.
Medco Energi is the largest independent oil and gas exploration and production company in Indonesia.
Solar Philippines began developing its Bali solar projects in 2017 and formed its JV with Medco in 2019 to submit a bid in the first competitive auction for utility-scale solar of Indonesia’s state utility PLN.
The JV beat several international power companies to win 25 MW in East Bali and 25 MW in West Bali, for a total of 50 MW. In 2023, the JV began construction of the first 25 MW in East Bali.
The JV plans to energize the first 25 MW Bali project by the end of 2024, followed by the next 25 MW for a total of 50 MW of Bali projects by 2025.
Indonesia has one of the world’s lowest solar capacity per capita, with an estimated total 500 MW of solar operating in a country of 279 million people.
Solar Philippines said this is due to low power prices, and the scarcity of land in the most populous island of Java, with challenges similar to developing solar in Luzon.
