Global law firm Ashurst has advised Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Proparco and Standard Chartered Bank (SCB), as lenders, on the structuring and financing of the 60MW Saguling Floating Solar Project in West Java, Indonesia.
Developed by a consortium comprising ACWA Power and PT PLN Indonesia Power, the greenfield independent power project will be constructed on the reservoir of the existing Saguling hydropower plant. The project, which benefits from a 25-year power purchase agreement with PT Perusahaan Listrik Negara (PLN), is the second large-scale floating photovoltaic (FPV) project to reach financial close in Indonesia and the first to be delivered by ACWA Power in the country. This will also be the first floating solar IPP financing by DEG and Proparco and the first Indonesian Just Energy Transition Partnership solar project to be financed by both the public and private sectors.
The innovative co-location of solar generation atop a hydro reservoir supports Indonesia's National General Energy Plan and its target of achieving 23% renewable energy in the national mix by 2025, while showcasing the growing bankability of FPV technology across the Asia-Pacific region.
A cross-jurisdictional team, led by Jean-Louis Neves Mandelli (Singapore), Frédéric Draps (Jakarta), and Alfred Ng (Singapore), and drawn from the firm's London, Perth, Singapore and Jakarta offices, supported the lenders as international and Indonesian law advisors on all aspects of the transaction, including project structuring, due diligence and financing arrangements. The team included Gregor Page (London), Dan Trevanion (Jakarta), Chandra Setyabrata (Jakarta), Amelia Hirst (Perth), Fiffy Che (Singapore), Fernanda Dharmawan (Jakarta), Rachelia Jumanti (Jakarta), Nabitha Karunia (Jakarta), Kanageswary Rajandran (Singapore) and Catherine Lathom-Sharp (London).
Commenting on the transaction, Jean-Louis said:
"We are delighted to have supported DEG, Proparco and SCB as well as the sponsors on this landmark financing. Floating solar is a very helpful technology in Southeast Asia, due to its efficient use of land and higher overall efficiency, and we expect it to continue to grow in significance over the next few years."
