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IFC and Asia Green Capital Partners to jointly develop 62.5-MW wind power in Sulawesi

Wind Farm
Wind Farm

JAKARTA ( – IFC, a member of the World Bank Group, and Asia Green Capital Partners Pte Ltd, a renewable-energy developer and investment company, have inked a deal to develop the first wind-power project in Jeneponto, South Sulawesi province. The project is expected to help the country increase its clean-energy supply and stimulate the local economy.

On Aug. 17, PT Energi Angin Indonesia – a subsidiary of Indo Wind Power Holdings Pte Ltd, which is wholly owned by Asia Green Capital Partners – and the South Sulawesi provincial government signed a memorandum of understanding to develop the 62.5-megawatt (MW) Jeneponto 1 wind farm. They said the agreement is part of the celebrations for the 70th anniversary of Indonesia’s independence.

The win farm will be tied to the South Sulawesi electricity grid, operated by the state electricity company PT PLN and is expected to produce a net annual energy yield exceeding 200 gigawatts per hour – enough electricity to supply to more than 450,000 people and help avoid 120,000 tons of carbon dioxide emissions a year.

“Being one of the first large-scale wind projects in Indonesia, Jeneponto 1 will set a milestone in the country’s renewable-energy sector once it is completed,” said Edgare Kerkwijk, Managing Director of Asia Green Capital Partners.

“We are grateful for the support of the Governor of South Sulawesi and IFC and hope to complete proprietary work for the project by the end of this year.”

The Jeneponto 1 project will help the Indonesian government move closer toward its goal of increasing the country’s electrification ratio to 91 percent by 2019 from around 65 percent at present and channeling greater investments into the clean-energy sector to diversify its energy sources and reduce carbon emissions. The wind farm can also stimulate the South Sulawesi economy and create jobs.

IFC is funding the project – its first wind investment in East Asia – through IFC InfraVentures, a $150 million global infrastructure development fund that aims to increase the pipeline of bankable projects in developing countries. The fund is designed to address key constraints to private investment in infrastructure development in frontier markets.

”IFC’s support to Asia Green Capital Partners and the Jeneponto 1 wind farm reflects our commitment to helping the Indonesian government increase a reliable electricity supply to more Indonesians, particularly in the eastern part of the country,” said Sarvesh Suri, IFC’s Country Manager for Indonesia.

“In addition, the project will provide a clean-energy source for the South Sulawesi grid, reducing the dependency on expensive and volatile fossil fuels and avoiding carbon emissions,” he noted.

Indonesia has potential resources to generate around 9,000 megawatts of wind power, but the existing installed capacity is only 1.9 megawatts. The country still struggles with one of the lowest electricity supply rates in Southeast Asia – around 30 percent of the population has no access to a reliable source of electricity.

Following the launch of this initiative, Asia Green Capital Partners plans to expand its efforts to other renewable-energy projects across Indonesia and Southeast Asia, including Jeneponto 2 in South Sulawesi and a 20-megawatt wind farm in West Timor.

Asia Green Capital Partners is a dedicated project developer committed to investing in clean-energy infrastructure assets that leave a long-term positive impact on society and the natural environment. The firm has a special focus on the development of wind and solar projects in Southeast Asia.

Within its target markets, AGC is active as a corporate finance advisor by advising on merger & acquisition, structuring transactions, arranger of equity and/or debt, and as investor. The Managing Director for AGC is Edgare Kerkwijk who was previously a partner and CFO for BioX Group, an integrated renewable energy firm.

The sponsor (AGC) has established an SPV company, PT Energi Angin Indonesia to develop and operate the first wind farm. The company is 65-percent owned by Asia Green Capital through its subsidiary Indo Wind Power Holdings Pte Ltd and 35 percent owned by busienssman Henry Maknawi of Kencana Group.

Kencana Group is group of companies involved in Oil Palm plantations and mills in Indonesia. In addition to it, Kencana also owns and operates two biomass power plants using oil palm shells as feedstock. The holding company of Kencana Group, Kencana Agri Limited, is listed in Singapore stock exchange with market capitalization of US$ 284 million. AGC, in turn, is owned by Edgare Kerkwijk. (*)

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