Jakarta, Indonesia – Elizabeth L. Littlefield, President and CEO of the Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, and Brian Caffyn, President Director of PT UPC Sidrap Bayu Energi, today signed a Letter of Cooperation for the financing of Indonesia’s first wind power project. In March 2016, the OPIC Board of Directors approved a proposal to provide up to $120 million of financing for the development, construction, commissioning and operation of a wind farm with a generating capacity of 75MW in Sulawesi, Indonesia.
“PT UPC Sidrap Bayu Energi will be a transformative project that will provide clean renewable energy to Indonesia,” said Elizabeth L. Littlefield, OPIC’s President and CEO. “With the financing of this utility scale wind power deal, we are helping Indonesia accelerate its renewable energy development while improving the lives of local communities by providing reliable power.”
President Director of PT UPC Sidrap Bayu Energy Brian Caffyn said “The pioneering Sidrap wind farm project will be Indonesia’s first utility scale wind farm project. UPC is proud to be able to bring a new power generation form to Indonesia at an affordable price and hopes to be able to replicate this success in other similar projects and provide low cost renewable energy for the benefit of PLN and the people of Indonesia.”
Indonesia’s generation capacity does not meet its growing electricity demand and this problem is aggravated on the island of Sulawesi. PT UPC Sidrap Bayu Energi’s 70MW wind farm plans to diversify the country’s generation mix with a clean source of power and contribute to the Government of Indonesia’s energy goals of increasing renewable energy from 6% of the generation mix in 2014 to 23% by 2025.
“I am pleased to see growing U.S. investment in Indonesia and to affirm the U.S. Government’s support for advancing Indonesia’s clean energy goals” said U.S. Ambassador to Indonesia Robert O. Blake, Jr.
Since 1974, OPIC has committed $2.2 billion in finance and insurance across 115 projects in Indonesia. OPIC’s portfolio of active projects in the country covers a range of sectors, from healthcare to financial services. Through its work with PT UPC Sidrap Bayu Energi, OPIC will be supporting the development of the first utility-scale wind power plant in Indonesia.
OPIC’s support of wind power projects throughout Latin America and the Caribbean, Africa, and Asia has bolstered clean energy capacity throughout the world. From 2011 to 2015 alone, OPIC committed more than $1.4 billion across 20 wind power projects. These wind commitments contributed to over 1,000 MW of clean energy and represented over 2 million tons of avoided CO2 emissions.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker’s rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.
The UPC Renewables Group of Companies is a majority American owned renewable energy developer that has developed more than 2300MW of wind energy projects over the last 20 years in the US, Italy, China, the Philippines and Morocco. All projects built by UPC are still operating. The Indonesian entity, PT UPC Renewables Indonesia employs 70 people in 5 offices throughout Indonesia with a focus on building wind energy and solar energy projects throughout the Indonesian archipelago.
PT UPC Sidrap Bayu Energi is the majority UPC owned project entity for the Sidrap Wind Farm project together with their local partner PT Binatek Energi Terbarukan.
Original Source: www.opic.gov