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Norwegian multinational to develop 70-mln-USD solar plant in Indonesia

Multinational Scatec Solar plans to invest 70 million USD to build a 70MW solar photovoltaic plant in Labuan Bajo, a famous tourist destination in Indonesia’s East Nusa Tenggara.
Jakarta (VNA) – Multinational Scatec Solar plans toinvest 70 million USD to build a 70MW solar photovoltaic plant in Labuan Bajo,a famous tourist destination in Indonesia’s East Nusa Tenggara.

The plant’s capacity is five times that ofIndonesia’s current largest solar power plant, the 15MW Likupang solar farm inNorth Sulawesi. The Oslo-based firm intends to begin construction of the100-hectare facility later this year and start its operation by 2022, a yearbefore the province hosts a G20 summit.

In Asia, Malaysia is Scatec’s biggest operatingcountry, said Southeast Asia representative Jeevaneswaran “Jeevan” Ramoo,adding next in development are Vietnam and Indonesia.

Despite Indonesia’s commitment to boost usage ofrenewables, investments into the sector have been deterred by unfavourableregulations such as tight local content requirements.

Scatec itself faces challenges in acquiringsolar photovoltaics for the Labuan Bajo plant due to local content requirementregulations. The company is evaluating local manufacturing quality and prices,said Jeevan.

The Norwegian company will be developing theLabuan Bajo plant with Indonesian renewables company PT Arya Watala Capital andtourism developer PT Flores Prosperindo.

Watala managing director Mada Ayu Habsari saidthat the company saw ample growth room for electricity consumption in LabuanBajo because the beachfront is among the 10 areas slated to become tourismhotspots under a governmental programme.

Prosperindo president director Alfonso Pardedewas also confident about growth room for electricity consumption in East NusaTenggara, citing the province’s electrification rate of 85 percent – the lowestin Indonesia./.
VNA

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