Solar PH-Medco JV inks PPA for Indonesia project (Sabong News)

Filipino-owned Solar Philippines (SP) and its joint venture partner Medco Energi Inc. (Medco) inked a power purchase agreement (PPA) with Indonesia’s state-owned power utility PT Perusahaan Listrik Negara (PLN) for a 50-megawatt solar farm venture to be sited in Bali. The power supply pact will be for a duration of 20 years. The solar farm will comprise 25MW installation in East Bali and the other 25MW development in West Bali. Project construction is expected to start next year. For that deal in Indonesia, Solar Philippines has given its subsidiary – Solar Philippines Nueva Ecija Corporation (SPNEC) – an option “to subscribe for SP’s share in the JV, in which it holds 49 percent.” The subscription option, the company emphasized “shall be subject to regulations,” including the approval of the Indonesian power utility, being a counterparty in the PPA for the solar farm installations. Solar Philippines narrated that it has been scouting for investment prospects in Indonesia as early as 2017. This led to a JV with Medco, enabling them join the PLN-sponsored competitive auction for solar projects in 2019. Following the process, the Solar Philippines-Medco tandem finally signed the PPA with PLN on March 24 this year. “The Medco-SP JV beat several international power companies to win both projects in this auction,” the Filipino company said. Solar Philippines founder Leandro Leviste qualified “while this project is neither financially significant nor within our strategic focus of developing solar projects in Luzon, we hope this shows two things… that Solar Philippines is able to develop projects, form joint ventures, and win PPAs.” For the investment traction it has been gaining in Indonesia, Leviste indicated that they are eyeing to replicate it in the fresh line-up of projects that they will be pursuing in the Philippine market. On subsidiary SPNEC, he noted that the firm “has opportunities even beyond what has been factored into the share swap valuation.” Leviste conveyed that “while the project development business is full of challenges, we are working so that, in the end, we may exceed expectations.”