Climate Policy Initiative backs FS for solar and battery projects in eastern Indonesia

By Romel S. Gurky

US-based Climate Policy Initiative has recently signed an agreement with several Indonesian partners to support a feasibility study for solar power and battery storage projects in eastern Indonesia, the organization said.

The agreement involves Empat Mitra Indika Tenaga Surya, PT Indo Tambangraya Megah Tbk  (IDX: ITMG) and Synkrona to assess the development of clean energy initiatives combining solar photovoltaic (PV) systems with battery energy storage systems (BESS).

The study will be supported through Climate Policy Initiative’s Sustainable Banking Hub program, which aims to strengthen sustainable finance by improving financial literacy, promoting dialogue between regulators and industry, and supporting the development of market based financing instruments.

Under the program, the organization will provide support through a Project Preparation Facility designed to help projects undergo due diligence and improve their readiness to access commercial financing.

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Climate Policy Initiative said the initiative is intended to help mobilize private sector funding for Indonesia’s energy transition by improving project bankability and expanding financing opportunities for renewable energy development.

The feasibility study is expected to support the development of solar and battery storage projects in eastern Indonesia, a region where renewable energy resources are being explored to help expand electricity access and reduce reliance on fossil fuels.

Climate Policy Initiative is an international research and advisory organization that works with governments and financial institutions to mobilize private capital for low carbon and climate resilient projects.

Empat Mitra Indika Tenaga Surya is a solar energy developer backed by Indonesia’s Indika Energy group that focuses on photovoltaic projects and solar solutions for commercial and industrial users.

PT Indo Tambangraya Megah Tbk is a Jakarta listed coal producer controlled by Thailand’s Banpu Group that has begun expanding into renewable energy and energy transition businesses.

Synkrona is a consulting firm that provides advisory services on renewable energy development, climate finance and energy transition strategies in Southeast Asia.

Editing by Alexander Ginting