Sembcorp’s solar and energy storage project in Indonesia terminated
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Sharanya Pillai
SEMBCORP Industries and two companies it had partnered have terminated a joint-development agreement (JDA) to build a large-scale integrated solar and energy storage project in Indonesia.
All parties have mutually agreed to end the JDA, and the consortium has been dissolved, Sembcorp disclosed in a Monday (Mar 27) bourse filing.
The company entered the JDA back in October 2021 with Indonesian companies PLN Batam and Trisurya Mitra Bersama. The project, planned for the Batam, Bintan and Karimun region, was to generate approximately 1 Gigawatt peak (GWp) of solar power.
It was also to include a large-scale energy-storage system. The renewable energy generated on site was meant to supply clean energy to communities in Indonesia and Singapore, with power proposed to be transmitted through subsea cables.
Sembcorp did not elaborate on the reasons for the termination of the project in the filing, but said that it “remains committed to supporting Asean’s energy transition with reliable clean energy supply”.
“The company continues to develop, and is engaged in a number of initiatives, to import energy from the region,” it added.
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The termination is not expected to have a material impact on Sembcorp’s earnings per share for the FY ending December 2023. The company’s shares closed at S$4.30 on Monday, up 1.4 per cent or S$0.06, before the announcement.
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