PLN sign agreement with Savilis, VOGT to build solar farms

Public utility PT Perusahaan Listrik Negara (PLN) announced on Friday it has signed an agreement with Savills (UK) Limited and NV VOGT Singapore Pte. Ltd to build several solar farms with a combined capacity of 150 MWp in several areas in eastern Indonesia.

The agreement was signed by PLN?s Corporate Planning Director Nicke Widyawati on Wednesday in London during the state visit by President Joko Widodo to the country, the firm said but did not provide details about the agreement.

The development of the solar farm projects will maximally use local contents, including locally-produced products and local workers for engineering as well as operation and maintenance service, Nicke said.

The project is part of the US$19 billion business contracts and deals signed by the Indonesian and British companies during the state visit.

Earlier, during the President?s state visit to Germany, PLN also signed a memorandum of understanding (MoU) with Siemens on the development of small mobile power plants with a total capacity of 500 MW in various parts of eastern Indonesia. Under the MoU, 75 percent of the components to be installed at the small mobile power plants will be locally manufactured with value amounting to at least 45 percent of the total investment.

Besides, under the MoU, PLN and Siemens will cooperate in the development of National Capacity Building, including the development of local manufacturers, O&M capacity and human resources.

Editing by Johannes Simbolon