Partnerships for Progress: The Tembesi Floating Solar Project in Indonesia

Indonesia’s path to clean energy takes a significant step forward with the Tembesi Floating Solar Power Plant in Batam City. Set to become Indonesia’s second floating solar installation after Cirata, this innovative Public-Private-Philanthropy Partnership (PPPP) demonstrates how strategic partnerships can turn ambitious goals into reality. The timing is crucial–Batam-Bintan’s impressive 6.6% growth over the past decade demands sustainable energy solutions that can power businesses, create jobs, and improve lives across the region. With the current power supply reaching 597.32 MW and operating near peak capacity, the need for additional clean energy infrastructure is clear.

Pioneering a New Model for Energy Development

Early-stage development risks often stall renewable energy projects. The Global Energy Alliance for People and Planet (GEAPP) tackles this challenge by supporting PT SMI’s Energy Transition Mechanism Country Platform. This collaboration strengthens technical design and environmental assessment while supporting investment in communities, creating the foundation needed to attract larger investments and ensure the project delivers lasting benefits to local communities.

PT Sarana Multi Infrastruktur (PT SMI), Indonesia’s national development bank and country platform for the Energy Transition Mechanism, strengthens this initiative by addressing critical needs in Batam’s power system, which currently operates near its 500 MW peak load while providing an additional 65 MW to the Bintan system. For local businesses and residents, this means a more reliable power supply and reduced risk of outages that can disrupt daily life and economic activity.

The partnership leverages each organization’s strengths to maximize impact. PT SMI’s infrastructure expertise and understanding of Indonesia’s development landscape ensure effective implementation while creating meaningful opportunities for local workers and businesses. The Tembesi project exemplifies strategic collaboration, bringing together Nusantara Tembesi Baru Energi, a public-private partnership, and philanthropic support to create a pioneering PPPP model. These initiatives ensure the project delivers benefits beyond power generation by addressing community needs through the creation of new job opportunities in the renewable energy sector, technical training for local workers, and support for small businesses in the clean energy supply chain.

Building a Sustainable Future for Communities

The Tembesi installation, connecting to the 150 kV Panaran-Muka Kuning transmission line, will generate 56.5 GWh annually from its 46 MW capacity–enough clean energy to power thousands of homes in the region. This addition is particularly significant for Batam’s energy landscape. As of May 2023, Batam’s grid runs entirely on conventional fuel. Gas-fired plants supply 71.3% of the 677.9 MW total capacity, with coal (19.2%) and diesel (9.5%) making up the rest. When Tembesi begins operating in late 2025 or early 2026, it will introduce the first significant renewable energy capacity to Batam’s grid.

The project’s environmental impact is substantial. By potentially supplanting conventional fuel-based electricity generation, it is expected to avoid between 42,422 and 43,807 tonnes of CO2e emissions annually during its 25-year Power Purchase Agreement period. The floating solar design offers additional environmental benefits, minimizing land use while preserving precious space on Batam’s islands for other development needs. Advanced environmental monitoring systems will protect local ecosystems, while the installation’s design includes features to enhance water quality and support aquatic biodiversity.

Beyond environmental gains, Tembesi creates far-reaching economic opportunities for local communities. During construction, approximately 1,260 workers will gain valuable experience in renewable energy infrastructure development. As the project transitions to operations, it will maintain 42 permanent positions, creating sustainable career paths in the growing clean energy sector. Local businesses will find new opportunities throughout the project’s supply chain, from construction support to ongoing maintenance services. This expanding clean energy ecosystem helps build the skilled workforce needed for Indonesia’s energy transition.

With PLN Batam planning 60 MW of renewable capacity by 2029, Tembesi sets a precedent for similar projects nationwide. The project demonstrates how renewable energy can transform communities through improved air quality, skilled employment opportunities, and stronger local capacity in clean energy technology. This model of strategic collaboration, combining international best practices with local needs, provides a blueprint for accelerating Indonesia’s transition to sustainable energy while ensuring communities share in its benefits.

The project’s impact will ripple across Indonesia’s energy sector. As more regions seek to develop renewable energy infrastructure, Tembesi provides proven approaches to community engagement and technical implementation. Its success demonstrates that with strategic partnership and careful attention to local needs, Indonesia can build a clean energy future that powers economic growth while protecting our environment for future generations.

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Lucky Nurrahmat is the Indonesia Country Lead for the Global Energy Alliance for People and Planet (GEAPP), where he works closely with the Government of Indonesia and various energy actors to accelerate the Just Energy Transition. In Indonesia, GEAPP has focused on strengthening the enabling environment, accelerating coal-fired power plants, decommissioning pilots, and supporting transformation and scalable renewable energy projects. Prior to GEAPP, Lucky has extensive experience in the energy areas, both in private and international development sectors. Trained as an engineer, he served clients across Southeast Asia with McKinsey & Co. After a brief stint at the Green Climate Fund and the World Bank, he worked in strategy & business development for a renewable energy company, before transitioning to non-profit, serving as COO for Edufarmers, a foundation that is focused on upskilling youth and enhancing smallholder farmers’ livelihoods. He holds an engineering degree from Bandung Institute of Technology, a master in business from Tilburg University, the Netherlands, and a public administration degree from the Kennedy School of Government at Harvard University. In his spare time, Lucky is a long-distance runner.