In 2021, Standard Chartered helped finance a 145-megawatt floating solar photovoltaic power plant on the Cirata reservoir in West Java, issuing a USD 112 million 16-year project finance facility alongside two other lenders. On completion, it will be the first floating solar project in Indonesia and the biggest in Southeast Asia.
The Cirata project is also the first from an Independent Power Producer (IPP) in Indonesia to receive fully uncovered long-term loans from commercial banks without development finance institution or export credit agency involvement. The model this transaction has created could unlock significant amounts of further financing for Indonesian clean power markets and support Indonesia’s goal to generate 23% of its electricity from renewable sources by 2025.
The project is expected to power 50,000 homes and avoid 214,000 tons of CO2 emissions annually, while contributing to the creation of up to 800 jobs.
Standard Chartered’s contribution to this transaction supports its target of mobilising USD 300 billion in sustainable finance by 2030.
Read more on Standard Chartered’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2023 Progress Update (December 2023).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.