Solar Philippines enters PPAs with PLN for 50 MW solar projects

The two projects are located in Bali.

Solar Philippines, through its joint venture (JV) with Medco Energi, entered 20-year power purchase agreements (PPA) with PLN, the state utility from Indonesia, for its two solar projects with a total capacity of 50 megawatts (MW).

In a disclosure, Solar Philippines said the PPAs will be for the 25 MW solar farm in East Bali and one for a 25 MW solar farm in West Bali which is the largest ground-mounted solar project in Indonesia to date.

“While this project is neither financially significant nor within our strategic focus of developing solar projects in Luzon, we hope this shows two things,” Solar Philippines founder Leandro Leviste said. “First, that SP is able to develop projects, form JV’s, and win PPA’s. If we can do this in Indonesia, then we should do so all the more in the Philippines, under the same model of winning projects with JV’s.”

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“Second, that SPNEC (Solar Philippines Nueva Ecija Corporation) has opportunities even beyond what has been factored into the share swap valuation. While the project development business is full of challenges, we are working so that, in the end, we may exceed expectations,” Leviste added.

Solar Philippines started developing the Bali projects in 2017 and formed the JV with Medco in 2019. It holds a 49% share in the JV.

The projects were scheduled to start construction in 2023.