Singapore outfit Sunseap Group has signed a memorandum of understanding with Indonesian company Badan Pengusahaan Batam to build a 2200MW floating solar plus storage project on a reservoir in Indonesia’s Batam Island.
Under the terms of the MoU, Sunseap will develop the $2bn project on Duriangkang reservoir in the south of Batam Island.
The development would span around 1600 hectares, and have storage capacity of over 4000 megawatt-hours.
Sunseap said the solar farm is expected to generate more than 2600 gigawatt-hours of electricity per a year.
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.
The company is also planning to setup a Sunseap Academy in Batam, which will see to the hiring and skills sets transfer to more than 3000 locals who will be involved in the building work.
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.
A portion of the energy will be consumed within Batam while the balance can potentially be exported to Singapore approximately 50km 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.”