Sunseap and BP Batam to build 2.2GW floating solar farm in Indonesia

Sunseap Group and Badan Pengusahaan Batam (BP Batam) have signed a memorandum of understanding (MoU) to build a floating solar farm and energy storage system (ESS) which are expected to be the largest in the world.

Under the MoU, Sunseap will develop a floating photovoltaic system (FPV) and ESS on Duriangkang Reservoir in Indonesia’s Batam Island.

The FPV is projected to have a capacity of 2.2 GWp and span around 1,600 hectares, making it the largest in the world to-date, Sunseap stated.

The ESS is also expected to be the world’s largest with a storage capacity of larger than 4,000 MWhr.

The project, estimated to be worth around $2 billion, will be financed through a mixture of bank borrowings and internal resources. Construction is set to begin in 2022 and be completed in 2024, according to Sunseap.

Duriangkang Reservoir is the largest reservoir in Batam with a volume of 101.2 million m3, supporting more than 50% of fresh water supply to Batam Island.

The floating solar panels will be beneficial to reducing the evaporation, thereby retaining more water within the reservoir. Simultaneously, the water will keep the solar panel cool allowing the panel to generate more clean energy, Sunseap explained.

The company expects the solar farm to generate more than 2,600 GWh of electricity annually, potentially offsetting more than 1.8 million metric tons of carbon per year.

“We are honoured to be given the opportunity to partner BP Batam in helping to promote sustainable development in the region, and to bring affordable and stable clean energy to Batam and beyond“, said Frank Phuan, co-founder and CEO of Sunseap.

Sunseap said the energy generated and stored will supply non-intermittent solar energy 24/7. A portion of the green energy will be consumed within Batam while the balance can potentially be exported to Singapore approximately 50 kilometres away via a subsea cable.

“This investment by Sunseap will be a timely boost for Batam’s industries as they seek to reduce the carbon footprint of their operations. At the same time, it will create jobs and transfer skills to Batam’s clean energy sector”, said Muhammad Rudi, chairman of BP Batam.

Sunseap intends to set up a Sunseap Academy in Batam as well, which will hire and transfer skills sets to more than 3,000 locals who will be involved in the construction of FPV and ESS.

According to Phuan, this project is a significant milestone for Sunseap coming soon after having completed Singapore’s first offshore floating solar farm in the Straits of Johor.

Back in April, Sunseap signed a multi-year virtual power purchase agreement (VPPA) with Facebook for solar power from this offshore floating solar farm.

All renewable energy credits (RECs) from the project will be transferred to Facebook under the VPPA and will support the technology company’s operations in Singapore, including Facebook’s first custom-built data centre in Asia, according to Sunseap.