IFC, Asia Green Capital team up on renewables

The tie-up will allow IFC's early stage project development fund - IFC InfraVentures - and AGCP to develop a series of renewable energy projects addressing Indonesia's growing demand for sustainable power.

The first project is the 62.5 megawatt Jeneponto 1 wind farm in Indonesia's South Sulawesi province, which is already under development. AGCP will sponsor the project through Energi Angin Indonesia, a special purpose vehicle set up to develop and operate the wind farm.

The vehicle is 65%-owned by AGCP and 35%-owned by Henry Maknawi of Kencana Group, a group of companies involved in Oil Palm plantations and mills in Indonesia. IFC is contributing $2 million to the project which represent its first wind investment in East Asia through IFC InfraVentures.

"The Jeneponto 1 wind farm will add clean power to the energy mix of the South Sulawesi grid, reducing its reliance on fossil fuels, in line with the Indonesian government's plans to diversify the country's energy sources and control carbon emissions," said Sarvesh Suri, IFC country manager for Indonesia, in a statement.

Indonesia struggles with one of the lowest electricity supply rates in Southeast Asia. Around 30% of the population does not have access to a reliable electric power source.

With 70% of the country's energy currently derived from coal and oil, the government is channeling more investment into clean energy. Indonesia is reported to have potential wind power generation resources totalling 9 gigawatts while the installed capacity for wind power is still just 1.9 MW.

Based in Singapore, AGCP is a dedicated clean energy project developer with a special focus on the development of wind and solar projects in Southeast Asia.

"With IFC as our partner, we are confident that we can complete development of our first wind project this year and start construction in 2015," said Edgare Kerkwijk, director wirg AGCP. "Together with IFC, we will also continue to develop our other existing wind and solar projects and look for new opportunities in the region."

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• Topics
• Infrastructure
• Cleantech
• Southeast Asia
• energy
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• Indonesia
• IFC
• Cleantech