New proposal would provide renewable energy and manufacturing boost to Indonesia; Australia’s wind and solar resources to generate renewable energy
Leaders in renewable energy technology and development today unveiled a ground-breaking proposal with the potential to solve several key energy and sustainable development challenges facing Indonesia, while creating significant new manufacturing opportunities.
The Asian Renewable Energy Hub (AREH) is a proposed up to 6-gigawatt wind and solar hybrid power plant in Western Australia’s East Pilbara region that would export its electricity production to Indonesia via subsea electrical cables. The AREH is being developed by a team which includes CWP Energy Asia and InterContinental Energy (leading renewable energy project developers) and Vestas (the world leader in sustainable energy solutions).
While the electricity generated would come from Australia, the wind and solar generating equipment would be manufactured in Indonesia, creating a new source of skilled, high-tech jobs, the development of a local supply chain and technology and knowledge transfer.
By 2025, the AREH would provide the reliable and cost-competitive electricity that would help to meet Indonesia’s energy demand and renewable energy targets. In addition, AREH would help to address energy security challenges through long-term and stable pricing for electricity, as the wind and sun have no cost and no exposure to future carbon pricing.
The AREH Project
The Project site’s outstanding wind and solar resources can deliver large-scale, stable and competitively priced renewable electricity. The Project’s proximity to Indonesia, combined with advances in subsea cable technology that allow the cost-efficient transmission of electricity over very long distances, result in an opportunity to connect the South East Asia region and to unlock the possibility of developing this large-scale intercontinental renewable energy hub. The first phase of the AREH Project has an initial cost estimate of USD 10 billion, with subsequent phases to include supplying renewable energy to other countries in South East Asia.
The scale of the wind turbines, solar panels and related equipment needed for the Project would be large enough to justify building new manufacturing facilities in Indonesia, thus creating a large renewable energy industrial base that could help reduce the cost of power across Indonesia and the rest of the region, and create thousands of skilled jobs.
The Background
After three years of work developing the proposal and assessing its viability, the AREH Project team are looking to engage potential Indonesian manufacturing, construction and investment partners.
Already, onshore and offshore development studies for the AREH are underway, a team of partners and investors has been assembled, and the Governments of Indonesia, Australia and Denmark – which has a long history of enabling the creating of renewable energy markets – have been engaged. The Project Team has just submitted the Project for environmental review in Australia.
The Team
The AREH Project Team has extensive experience developing and building renewable energy projects in Australia, Indonesia and around the globe. This proven track record, together with input from expert consultants, technology partners and knowledgeable stakeholders has resulted in a validated development and construction strategy. Technology partners Prysmian and Swire Pacific Offshore assisted with the feasibility work and remain engaged in the Project. Prysmian is the world’s leading subsea cable manufacturer and Swire Pacific Offshore is a leading offshore contractor.
“The most important step in developing a project is finding the best site,” said Alexander Tancock, Managing Director of InterContinental Energy. “We spent two years investigating the entire northwest coast of Australia, and found this incredible location. Almost three times the size of Bali; it has a unique geography and topography that gives it far higher wind and solar resources than the average in that area. And those resources are perfectly complementary, with lots of sun during the daytime and high wind speeds in the morning, evening and night. That is why we can deliver such competitively priced power to Indonesia.”
“Wind and solar energy, working together, have enormous potential to supply reliable and competitively-priced renewable energy across regions,” said Alexander Hewitt, managing Director of CWP Energy Asia. “Given the increasing ability to move energy over long distances, the Asia Renewable Energy Hub is a compelling proposition for Indonesia – not only for supplying the energy, but for the economic benefits that come with establishing manufacturing facilities in Indonesia.“
“As renewable energy becomes cost-competitive with fossil fuels, it becomes more and more attractive both as source of electricity and as a source of jobs and investment,” said Clive Turton, President of Vestas Asia Pacific. “The Asian Renewable Energy Hub can compete over the long-term as a cost-effective means of supplying energy. It can also provide the foundation for a strong Indonesian renewable energy technology manufacturing hub, driving investment, job creation and a local value-added supply chain.”
You can find more information on the AREH here: www.asianrehub.com
About CWP Energy Asia
CWP Energy Asia believes that communities should have access to clean, sustainable and affordable energy supply. In Indonesia, the company was established in April 2015 to develop local renewable energy projects. Parent company CWP has over two decades of renewable energy development experience worldwide, and has created over 2,000 MW of renewable energy generation capacity. Over the last four years, CWP Renewables has developed and financed more Australian wind generation than any other company.
About InterContinental Energy
ICE is a privately owned company focused on developing large-scale intercontinental renewable energy hubs. Incorporated in 2014 by a team with decades of experience investing in renewable energy, technology, and infrastructure projects, ICE is developing several renewable energy hubs around the world, with the AREH being its most advanced project.
About Vestas
Vestas is the energy industry’s global partner on sustainable energy solutions. With 87 GW of wind turbines installed in 76 countries, Vestas’ more than 22,000 employees have created more wind power than any other company. Through our industry-leading smart data capabilities and more than 73 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Having installed the first wind turbines in more markets than anyone else, Vestas is the wind industry’s true pioneer and the most experienced partner in emerging markets – including South East Asia, where Vestas has supported the establishment of wind energy markets in Thailand, Vietnam, and the Philippines.
For more information, please contact
Andrew Hilton
Vice President, Communications, Vestas
ahilt@vestas.com
+45 5226 1050