Copenhagen Infrastructure Partners (CIP) has through Copenhagen Infrastructure New Markets Fund I (“CI NMF”) entered into a joint venture with PT Akuo Energy Indonesia, a subsidiary of French renewable power producer and developer Akuo, according to this announcement.
Under the joint venture, CI NMF and Akuo will jointly develop an initial portfolio exceeding 400 MW of onshore wind, solar, and run of river hydro projects in Indonesia, with a potential for future expansion. This transaction marks CI NMF’s first investment in the Indonesian renewable energy market.
This pipeline of 400 MW equals approximately 4.5 percent of the additional capacity required for Indonesia to reach its target of 23% renewable energy by 2025.
Speaking on the partnership, Eric Scotto, Co-founder, and Chairman of Akuo said: “Akuo has invested significantly in the Indonesian market in recent years, establishing an exceptionally capable local team with deep experience in understanding of the Indonesian market. Reaching an agreement with such a solid and committed partner as CIP is a milestone for developing a strong and multi-technology portfolio at the service of Indonesian citizens.”
Niels Holst, Partner, and Head of CI NMF commented: “We are delighted to take this first important step together with Akuo who we see as a great partner. Indonesia is a market with relatively limited renewable energy penetration, but very significant potential, and is, therefore, a key focus market for CI NMF. We look forward to delivering best of class, large scale and cost-competitive renewable energy to Indonesia. Together with our recently announced investment in India, this transaction demonstrates significant progress against CI NMF’s investment plan and underlines our ability to complete investments despite continued COVID-19 driven uncertainty.”
Astris Finance acted as exclusive financial advisor and Hadiputranto, Hadinoto & Partners, a member firm of Baker Mckenzie as legal advisor to CI NMF.