Armstrong Asset Management, a private-equity firm based in Singapore, agreed to fund a portfolio of mini-hydropower plants in Indonesia.
Armstrong’s South East Asia Clean Energy Fund will invest $22.5 million in a portfolio of 50 megawatts of hydropower plants, it said today in an e-mailed statement. The facilities are being built by a unit of PT Nusa Konstruksi Enjiniring Tbk.
“Together with NKE group’s proven strong project management, engineering and construction capabilities, we expect to deploy our capital rapidly to deliver high-quality mini-hydro assets to support sustainable development of Indonesia,” Michael McNeill, an Armstrong partner, said in the statement.
The first project of 5 megawatts is in Java and expected to start working by the second-quarter of 2016. A further three projects totaling 21 megawatts will be in Sumatra and are expected to be operational by the end of 2016.
Indonesia, aiming to get 15 percent of its energy from clean sources by 2025, is encouraging the development of green energy facilities through government subsidies. Small hydropower plants are currently eligible to receive premium payments of $0.07 a kilowatt-hour to $0.1 a-kilowatt-hour.