IFC, a member of the World Bank Group, and Asia Green Capital Partners, a developer and investment company dedicated to niche markets in the renewable energy sector, have entered into a joint development agreement to promote renewable energy generation, such as wind and solar power, in Indonesia and other markets across South East Asia.
The joint development agreement will enable IFC InfraVentures, IFC's early stage project development fund, and Asia Green Capital Partners to develop a series of renewable energy projects to help address Indonesia's growing demand for power in a cleaner and more sustainable way. The first project under development is the 62.5 MW Jeneponto 1 wind farm in Indonesia's South Sulawesi province. This project will be IFC's first wind investment in East Asia through IFC InfraVentures.
Indonesia has emerged as a vibrant middle-income economy with a fast-growing private sector. At the same time, Indonesia still struggles with one of the lowest electricity supply rates in South East Asia as around 30 percent of the population are without access to a reliable source of electric power. Under-investment in infrastructure, particularly in electricity generation, needs to be addressed to allow Indonesia reach its full economic potential.
Edgare Kerkwijk, Asia Green Capital Partners' Director, said:
"Asia Green Capital Partners is excited to start cooperating with IFC in developing a number of renewable energy projects in the region. With IFC as our partner, we are confident that we can complete development of our first wind project this year and start construction in 2015. Together with IFC, we will also continue to develop our other existing wind and solar projects and look for new opportunities in the region."
Sarvesh Suri, IFC Country Manager for Indonesia, said:
"Through our first IFC InfraVentures wind investment in East Asia, we will work with Asia Green Capital Partners to develop viable and sustainable opportunities for providing access to power in Indonesia and other countries in the South East Asia region. The Jeneponto 1 wind farm will add clean power to the energy mix of the South Sulawesi grid, reducing its reliance on fossil fuels, in line with the Indonesian government's plans to diversify the country's energy sources and control carbon emissions."