DLA Piper advises on Indonesian 262 MWp solar and 80 MWh BESS project

Global law firm DLA Piper advised the Indonesian renewable energy company, PT Sumber Energi Surya Morowali (SESMO), and its sponsors on the development and financing of a 262 MWp captive ground-mounted solar photovoltaic (PV) project, located in the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, Indonesia.

The project, being developed through a joint venture between SESMO and PT Sumber Energi Surya Nusantara (SESNA), an Indonesian renewable energy developer, and PT Sembcorp Energy Indonesia, a subsidiary of Singapore-headquartered Sembcorp Industries, will also include an 80 MWh battery energy storage system, and will supply clean and reliable electricity for energy-intensive industrial operations in IMIP.

With a total cost of approximately USD210 million, the project will be among the largest solar PV and battery energy storage facility in Indonesia when complete. It is expected to be operational in early 2027.

The greenfield project is being financed by a USD152 million long-tenor loan provided by Bank Negara Indonesia (BNI) and PT Sarana Multi Infrastruktur (Persero) (PT SMI) on a non-recourse basis, underscoring the project's strong bankability and commercial viability.

This project will advance energy transition efforts in the region and to support Indonesia's Net Zero Emissions targets. It additionally signals the strengthened commitment of BNI and PT SMI, as national financial institutions, to support the development of large-scale renewable energy infrastructure in Indonesia and to contribute to national decarbonization objectives.

Vincent Seah, partner in DLA Piper's Finance practice and Country Managing Partner, DLA Piper Singapore, led the transaction. He was supported by Wei Hong Wong (Of Counsel), Darren Foo (Senior Associate), and Ruyang Jiang (Associate), all part of the firm's Finance practice in Singapore.

Commenting on the transaction, Vincent said: “We have a strong track record in advising on all aspects of the development and financing of large-scale renewable energy projects both in Indonesia and in the wider Asia Pacific region. Our ability to deploy an experienced team of renewable energy lawyers in this transaction played a critical role in supporting the sponsors on all aspects of the project – including land acquisition, construction and procurement works, electricity offtake arrangements, structuring of project company ownership, equity, and debt financing.”