Solar Guys tap Islamic finance for 50 MW RI project

Queensland-based company The Solar Guys has tapped into the huge Islamic finance market to fund a 50 MW solar project in Indonesia, in what it claims to be first of many projects to come in the country.

Dane Muldoon, the director of The Solar Guys international, said as reported by reneweconomy.com the company will act as a EPC contractor to build the US$120 million project ? system design, procurement, installation supervision, project management and assistance with the ongoing operation over its life.

In addition, the company is also proposing to build solar projects totaling 250 MW under a plan it has dubbed the ?One Solar Watt Per Person? campaign. The target of 250 MW translates into 250 million watts, which roughly equates to Indonesia?s population.

Mitabu Australia is handling the finance and the most significant part of the project may be the use of Islamic finance, or Sukuk, which is a form of long-term bond often used for infrastructure projects that are judged to be in the community?s best interest. Most of the investment is coming via the Middle East and Malaysia.(*)