The agreement with PT PLN Batam and PR Trisurya Midtra Bersama for the development of solar energy and energy storage in Indonesia has been terminated by Singapore’s Sembcorp Industries.
The Joint Development Agreement was signed in October 2021, which was aimed at developing a large scale integrated solar and energy storage project in Indonesia’s Batam, Bintan and Karimun (BBK) region.
Had it been implemented, the project would have supported around 1,000 direct and indirect jobs in Indonesia and Singapore during its construction. As per the JDA,there were plans for solar power generation capability of around 1 gigawatt-peak (GWp).It was aimed at generating renewable power that would fulfill the clean energy needs of the local communities. There were also opportunities for the export of renewable energy to Singapore via subsea cables.
However, in a recent statement it said, “Sembcorp remains committed to supporting ASEAN’s energy transition with reliable clean energy supply.”
Further clarifying its stand on importing energy form Indonesia it said, “The company continues to develop, and is engaged in a number of initiatives, to import energy from the region.”
It may be recalled that earlier this month, leaders from Singapore and Indonesia had signed an MoU to develop renewable energy generation projects in Indonesia, both for domestic needs and for export to Singapore.
This Green Corridor Project is expected to attract an estimated $50 billion of foreign direct investments to Indonesia that will reduce the country’s national determined contributions (NDCs). This will further help in transferring renewable energy knowledge and skills into Indonesia.