PLN signs PPA with Total Eren, Adaro Power and PJBI for wind project in Indonesia

PT Perusahaan Listrik Negara (PLN) has signed a power purchase agreement (PPA) with Total Eren S.A., Adaro Power, and PT Pembangkitan Jawa Bali Investasi (PJBI), which covers the construction of a 70 MW wind power plant equipped with a battery energy storage system (BESS) of 10 MW/10 MWh to be located in Tanah Laut, South Kalimantan, Indonesia.

The signing was held by Darmawan Prasodj, PLN’s President Director, and Romain Pierru, Managing Director Indonesia & CFO APAC at Total Eren, and was accompanied by Gregory Thomassin, COO & Head of Project Finance APAC, Dharma Hutama Djojonegoro, Adaro Power’s President Director, Mustiko Bawono, Adaro Power’s Director, Kusmayanto Kadiman, Adaro Power’s Vice President Commissioner, Amir Faisal, PJBI’s Director, and Ruly Firmansyah, President Director of PLN Nusantara Power, at PLN’s head office in Jakarta, on 4 May 2023. The Tanah Laut wind power plant is expected to start supplying electricity in 2025 to support the government’s renewable energy targets in Indonesia.

Prasodjo said: “Going forward, this PPA for the Tanah Laut wind power plant is expected to serve as a reference for wind power plant projects in particular, and for new and renewable energy in general, not only in terms of the competitive price but also as being acceptable to independent power producers (IPP), PLN and the banking sector. This wind power plant, with a capacity of 70 MW and a BESS of 10 MWh, aims to strengthen the electricity supply in the Kalimantan interconnection system and add more renewable energy in the Indonesian mix.”

Garibaldi Thohir, Adaro’s President Director, stated: “The PPA signing is a significant moment for Adaro as we look to build out the Adaro Green pillar. This is not only our first IPP wind project, but also the manifestation of our serious endeavour to continuously develop various reliable and affordable renewable energy sources. This is in line with the government’s aspiration to ensure that the energy transition in Indonesia will produce affordable energy for all Indonesian people. We are delighted to have engaged into our partnership with Total Eren.”

Pierru added: “We are delighted to partner with PLN for the supply of electricity with the Tanah Laut wind farm, which demonstrates Total Eren’s strong commitment to the renewable energy market in Indonesia and strong ambitions in the country. Total Eren had initiated the development of this project and then been successfully awarded in a competitive tender together with our strategic partner Adaro Power. With the signing of this PPA, we are reaching a new milestone with our partners. I am looking forward to the commencement of the construction of the Tanah Laut wind farm which will provide low-carbon electricity for the benefit of people in Indonesia.”

The Tanah Laut wind power plant’s construction phase is targeted to commence at the beginning of 2024 and projected to achieve commissioning in 2025. It is expected to strengthen the electricity supply in Kalimantan Interconnection System and add to the new and renewable energy mix in Indonesia. The 70 MW Tanah Laut wind farm will use the latest wind turbine technology with a capacity of above 6 MW/unit and equipped with a BESS of 10 MW/10 MWh which will mitigate the wind farm’s intermittency.

The Tanah Laut wind project’s development has gone through a competitive process, out of which PLN appointed the Consortium of Total Eren and Adaro Power as the tender winner and signed the letter of intent (LoI) on 15 November 2022 within the G20 event in Bali. To expand the company’s portfolio, in particular in the renewable energy sector, PLN has assigned PJBI through PT PLN Nusantara Power (PNP) as PLN’s subsidiary in the power generation segment to get involved in the development of the 70 MW Tanah Laut wind farm. The PPA signing shows that Indonesia is a promising investment destination for renewable energy projects for overseas investors. In addition, the development of Tanah Laut wind power plant is also expected to be a reference for the future development of wind power plants and new and renewable energy projects for all parties, including the banking sector, sponsors, and PLN.