Armstrong Invests $22.5M to Enter Indonesian Mini-Hydro Market
Armstrong Asset Management’s Southeast Asia Clean Energy Fund has agreed to fund the construction of a portfolio of 50 MW mini-hydro power generation projects in Indonesia. The projects are being developed by PT Inti Duta Energi (IDE), a mini-hydro development subsidiary of Jakarta-listed construction company PT Nusa Konstruksi Enjiniring Tbk (NKE).
Armstrong has committed to a capital investment up to $22.5 million to develop and operate the plants.
Currently, IDE has a pipeline of mini-hydro projects in various stages of the permitting process. The first project of 5 MW output located in Java is expected to be operational by the second quarter of 2016, followed by an additional three projects totalling 21 MW output in Sumatra by the end of 2016.
Armstrong closed its Clean Energy Fund when it reached $164 million last November. Prior to the latest deal, it had made three investments from the fund: a capital commitment of up to $30 million to Annex Power for solar and biogas projects in Thailand, Indonesia and the Philippines; an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand, and a capital commitment of up to $40 million to The Blue Circle for wind and solar projects in Mekong Region.
Indonesia has the largest renewable energy resources in Southeast Asia. After the revision of the feed-in-tariff system announced recently, Indonesian mini-hydro has become one of the most attractive renewable energy sectors in Southeast Asia.
Photo via Shutterstock.
- 2015 Insider Knowledge
- 2016 Environmental Leader Product & Project Awards
- Advanced Rooftop-Unit Control (ARC) Retrofits: Field Demonstrations Validate Energy Savings
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- The Corporate Sustainability Professional's Guide to Better Data Management
- The New Energy Future - Challenges and Opportunities in Corporate Energy Management
- 10 Tactics of Successful Energy Managers
- Building Energy Benchmarking & Transparency Laws
- Increase the Value of Demand Response Through Automation
- Planning for a Sustainable Future