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AsiaElec: Singapore’s Sunseap to invest $2bn in 2,200-MW floating solar and storage project in Indonesia

Singapore’s Sunseap Group is to invest $2bn in developing a 2,200-MW floating solar plus storage project, the largest such solar project to date world-wide, on the Indonesian island of Batam.

The company signed a memorandum of understanding (MoU) with the island’s investment and development authority, Badan Pengusahaan Batam, to build the floating project on the Duriangkang Reservoir on Batam Island.

The development would span around 1,600 hectares, and have storage capacity of over 4,000 MWh.

Sunseap said the solar farm was expected to generate more than 2,600 GWh of electricity per year, potentially offsetting 1.8mn tonnes per year of CO2.

The project will be financed through a mixture of bank borrowings and internal resources. Construction is slated to begin in 2022 and be completed in 2024.

Sunseap co-founder and chief executive Frank Phuan said: “We are honoured to be given the opportunity to partner BP Batam in helping to promote sustainable development in the region, and to bring affordable and stable clean energy to Batam and beyond.

“This hyperscale project is a significant milestone for Sunseap coming soon after we had completed Singapore's first offshore floating solar farm along the Straits of Johor.

“We believe that floating solar systems will go a long way to address the land constraints that urbanised parts of Southeast Asia face in tapping renewable energy.”

Sunseap said the energy generated and stored will supply non-intermittent solar energy 24/7.

Part of the output will be consumed within Batam, while the balance can potentially be exported to Singapore approximately 50 km away via a subsea cable.

BP Batam chair Muhammad Rudi said: “This investment by Sunseap will be a timely boost for Batam's industries as they seek to reduce the carbon footprint of their operations. At the same time, it will create jobs and transfer skills to Batam's clean energy sector.”