Solar Philippines Power Project Holdings Inc. (Solar Philippines), the parent firm of SP New Energy Corporation, is acquiring a USD 14 million loan for erecting a solar farm in East Bali, Indonesia.
Through its partnership with MedcoEnergi (Medco), PT Medcosolar Bali Timur, the company penned a loan agreement with Bank Negara Indonesia (BNI) to finance the construction of a 25-megawatt (MW) solar farm in Kubu District, Karangasem Regency, East Bali.
The Manila Times reported that the loan, which amounted to USD 14 million, would expedite the completion of the project which was heralded as the most extensive ground-mounted solar endeavor in Indonesia.
In 2017, Solar Philippines initiated the solar project development in Bali and in 2019, collaborated with Medco to vie for a solar project tendered by Indonesia’s state-run utility, PT Perusahaan Listrik Negara (PLN).
In order to secure the bid to provide 25 MW in East Bali and another 25 MW in West Bali, the company finalized power purchase agreements with PLN in 2022.
Construction commenced in 2023 for the 25-MW facility in East Bali, with an estimated cost of $20 million.
The USD 14 million loan also contributed equity investments by both Medco and Solar Philippines.
The East Bali project is slated to be operational by the end of 2024, while the West Bali project aims for operational status by 2025.
