Denmark To Help Indonesia Develop Wind Energy Projects
Denmark and Indonesia have signed an agreement to promote and expand renewable energy infrastructure in the south-east Asian country.
According to media reports, the two countries signed an agreement to set up a 60 MW wind energy project in the South Sulawesi province; the project will be the first wind energy project in the province.
Indonesia’s power company will work with a Danish consortium led by Equis to set up the project. Another Danish company, Vestas Wind Systems, has also agreed to supply wind turbines and other equipment for the project.
“We are delighted to sign this agreement and continue the work to finalize the project. Vestas sees a long-term potential for wind energy in Indonesia, and we are confident this project can help pave the way for additional wind power investments,” Vestas chief executive Anders Runevad said.
In April this year, US-based Overseas Private Investment Corporation (OPIC) agreed to provide debt to the largest wind energy project in the country. OPIC announced that $120 million shall be provided to UPC Sidrap Bayu Energy for the construction and development of 70 MW wind energy project in Sulawesi. The project is reportedly the ‘largest of its kind’ in the country. UPC Sidrap Bayu Energy is joint venture between US-based UPC Renewables and local company Binatek Energi Terbarukan.
The country has a medium-term target for increasing the share of renewable energy in total energy use to 25% by 2025. Last year, the government set a target to increase the share of renewable energy in total energy mix to 19% by 2019.
Earlier this year, the government also announced plans to increase procurement of renewable energy by floating a new utility specifically for this purpose. The government considered this measure after reports that the country’s main power utility, Perusahaan Listrik Negara (PLN), is opposed to buying power from renewable energy projects due to the high costs involved in the exercise.