2GW solar hub planned for Sugi Island in Indonesia

Singapore-headquartered Aslan Energy Capital and PT Calypte Sugi Power in Indonesia have signed a Memorandum of Understanding (MoU) to develop a large-scale solar hub on Sugi Island.

The project is situated on Sugi Island, in Riau Islands Province, Indonesia, and will see the partners develop 1GW solar power capacity by Q3 2026. A total of 2GW is planned by Q4 2027.

According to Aslan Energy Capital, the project will leverage the favourable solar conditions on Sugi Island, including flat terrain and good irradiance.

Dr Muthu Chezhian, CEO of Aslan Energy Capital, Singapore, commented in a release: "The unique geographic location, relatively flat terrain and good solar irradiance conditions of the Sugi Island makes a compelling case to establish the power arm of our value chain and accelerate the progress in achieving the ESG goals and SDG targets of the Riau Province...

"Indonesia is our group's key strategic hub in Asia Pacific and our group remains committed to ensuring the success of the integrated portfolio of developments we have successfully originated in the country."

Have you read?
Government green lights Australia-Asia Power Link project
Construction starts on South Korea’s Imha Dam floating solar plant

Han Fook Kwang, chief development director of PT Calypte Sugi Power, added: "The feasibility studies have been completed with reassuring results and the project is advancing with the detailed project engineering in the coming months, with FID targeted in Q2 2025."

Aslan Energy Capital is a project developer and new energy assets platform with core operational markets in Asia and the Americas.

PT Calypte Sugi Power is part of Calypte Holding Pte Ltd, a development firm focused on energy and industrial opportunities across Indonesia.

According to the International Energy Agency, Indonesia is the world’s fourth-largest producer of coal and the world's largest producer of biofuels. It is, however, scaling up efforts to exploit its renewable energy potential, spurred by the falling costs associated with solar power.