As announced on 24 May, the Asian Development Bank (ADB) announced
a private sector financing package totaling approximately $40 million to invest
in Indonesia’s first utility-scale solar photovoltaic (PV) plants on a
The investment will help construct, operate, and maintain a
portfolio of energy projects, including a wind farm and four solar PV plants in
“By supporting a sector-changing financing for renewable
energy, with an innovative portfolio approach, ADB and Vena Energy have been
able to add over 114 MW of clean energy to Indonesia’s electricity grid, while
helping reduce the country’s dependence on fossil fuels and promoting renewable
energy development,” said Mr Jackie B. Surtani, Infrastructure Finance Division
Director for Southeast Asia, East Asia, and the Pacific at ADB's Private Sector
The loan package is part of a two-phased portfolio financing
totaling approximately $160 million for new renewable energy investments in
Indonesia. In this $160-million renewable energy investments, ADB will invest
in two phases in renewable energy assets being developed by Vena Energy which is currently the largest
renewable energy independent power producer (IPP) in the Asia and Pacific
region, with 11 gigawatts in operation, under construction, and in development.
ADB’s financing package totaled $40.2 million to four respective
subsidiaries of Vena Energy. The second phase comprises a 21 MW solar PV power
plant in Likupang, North Sulawesi and three 7 MW solar PV power plants in
Pringgabaya, Selong, and Sengkol in Lombok, West Nusa Tenggara. The wind and
solar power plants will supply energy to Perusahaan
Listrik Negara (PLN), Indonesia's national power utility.
The second phase also involves the administration of loans
from two trust funds administered by ADB, namely, the Leading Asia’s Private
Infrastructure Fund (LEAP) and the Canadian
Climate Fund for the Private Sector in Asia II (CFPS II).
Launched in August 2016, LEAP is one of ADB’s co-financing
vehicles dedicated to private sector infrastructure in Asia and the Pacific.
The Japan International Cooperation
Agency (JICA) supports the fund through a $1.5 billion equity commitment.
Combined with ADB’s own capital and that of commercial partners, the fund is
expected to provide financing of at least $6 billion and enables ADB to boost
support for quality and sustainable infrastructure.
At the same time, the CFPS II loans for the project’s two
phases have been instrumental in assisting the sponsors bridge the financing
gap in the relatively low-tariff environment in Indonesia and bring these
projects to market.
CFPS II was established in March 2017 with an
approximately $150 million contribution from the Government of Canada to
support greater private sector participation in climate change mitigation and
adaptation projects and promote gender equality and the empowerment of women
and girls in projects supported by the fund.