Sembcorp to build integrated solar and energy storage systems with Indonesia's PLN Batam and Suryagen

SEMBCORP Industries announced that it has signed an exclusive joint development agreement with Batam's utility company PLN Batam and Indonesian renewable energy developer Trisurya Mitra Bersama (Suryagen) to develop a large-scale integrated solar and energy storage project.

In its announcement on Monday (Oct 25) evening, the company said that the project will be located in Indonesia's Batam, Bintan and Karimun (BBK) region will be able to generate approximately 1 Gigawatt peak (GWp) of solar power and have a large-scale energy storage system to support managing the intermittency for clean energy deployment and export.

Sembcorp said that the renewable energy generated onsite will supply the clean energy needs of local communities as well as Singapore, with power proposed to be transmitted through subsea cables.

Both Minister for Manpower and Second Minister for Trade and Industry Dr Tan See Leng and Indonesia's Minister for Energy and Mineral Resources Arifin Tasrif presided over the signing of the agreement.

"The project is a strong example of the regional collaboration needed to enhance energy resilience and sustainability," the company said, adding that it is in line with Singapore's plans to harness regional clean energy sources, potentially contributing significantly to Singapore's transition to a clean energy future.

This comes after Trade and Industry Minister Gan Kim Yong announced on Monday that Singapore plans to import up to 4 GW of electricity by 2035, constituting about a third of the nation's electricity supply.

The project is also expected to support about 1,000 direct and indirect jobs in Indonesia and Singapore during the construction phase, and is expected to enhance the skills of local engineers in Indonesia to operate large-scale renewable energy infrastructure projects.

Wong Kim Yin, group president and chief executive of Sembcorp, said that the agreement broke new ground in the co-development of large-scale renewable energy projects and that it marks another step in the company's transition towards sustainable solutions.

Currently, the company imports natural gas from West Natuna in Indonesia to Singapore and is currently Singapore's largest natural gas supplier.

Sembcorp shares closed flat at S$2.04 on Monday, before the announcement was made.