KUALA LUMPUR: Yinson Renewables (YR), the renewables division of Yinson Holdings Bhd, has acquired a majority stake in Indonesia-incorporated turnkey solar company PT Ineco Solar Solutions (Inecosolar), marking the group’s entry into the Indonesian renewable energy space.
Inecosolar is a well-established solar system provider in Indonesia with a track record delivering residential and commercial rooftop solar systems. Inecosolar has delivered numerous projects across Bali, Gili, East Java and West Nusa Tenggara.
The acquisition aims to enable Inecosolar to provide all-in-one zero-capital solutions, expand its project portfolio and establish itself as an independent power producer (IPP) in Indonesia and beyond.
A zero-capital arrangement allows businesses to install rooftop PV systems with no upfront cost and benefit from reduced electricity tariffs over a 15 to 20-year tenure. Inecosolar aims to pioneer the rooftop solar market in Indonesia with innovative and competitive solutions.
“The transaction will further build YR’s presence and pipeline in Asia, which is one of our core regions of focus. Indonesia contributes approximately a quarter of Southeast Asia’s economic activity and is expected to become a major global economy. With a nascent renewable energy market, Indonesia is poised to be a major hub of the energy transition,“ said Yinson Renewables CEO David Brunt.
Last year, Indonesia announced its commitment to achieve carbon neutrality by 2060. The 2021-2030 Electricity Supply Business Plan (Rencana Usaha Penyediaan Tenaga Listrik, or RUPTL) from Perusahan Listrik Negara (PLN) has been labelled ‘Green RUPTL’ due to the increased share of renewable energy into the country’s future projects pipeline - about 20.9GW in total, with 4.7GW of solar achieved in the next decade. The RUPTL also emphasised the critical role of the private sector, estimating that 63.7% of Indonesia’s new solar power capacity will be developed by IPPs over the next decade.
Yinson Renewables vice-president (business development) Marius Kleiven welcomed the Inecosolar team to the YR family, saying, “It is important that Yinson Renewables finds strong local partners with a solid understanding of local market dynamics in order to execute our growth strategies. We have worked with Inecosolar for two years, and have established a good relationship grounded on our shared vision of delivering clean power to meet the world’s energy needs. I am confident that together, we can support Indonesia’s goal of becoming a key exporter of solar power in the region.”
“We are delighted to have Yinson Renewables onboard and to continue the journey together to reach new heights in the Indonesian energy transition. It is important for us to have a strategic partner who not only understands energy but also shares the same vision about how to do things differently and more efficiently in the current market. Together, we are looking forward to delivering innovative solutions to our Indonesian customers,“ said Inecosolar founder and director Benoit Prim.