15 January 2024
Clifford Chance advises Barito Renewables on its acquisition of five wind assets in Indonesia, including the country's largest wind farm
Global law firm Clifford Chance has advised PT Barito Renewables Energy Tbk (Barito Renewables) and its subsidiary, PT Barito Wind Energy (Barito Wind), on the international aspects of Barito Wind's acquisition of five wind farm assets in Indonesia, with a combined potential capacity of 395 MW, from UPC Renewables Asia Pacific Holdings.
The transaction includes:
- Barito Wind's 51% acquisitions of three development stage wind assets, with a combined potential capacity of 320 MW, located in South Sulawesi (Sidrap 2), Sukabumi and Lombok. ACEN Renewables International, through its subsidiary ACEN Investments HK Limited, acquired the remaining 49% of these assets;
- Barito Wind's 100% acquisition of PT UPC Sidrap Bayu Energi, the operator of the 75 MW Sidrap 1 wind farm, Indonesia's first and largest wind farm currently in operations; and
- Barito Wind's 100% acquisition of PT Operation and Maintenance Indonesia (OMI), which supports Sidrap 1's operational activities.
The acquisition of the three development stage wind assets closed in early January 2024 and completion of the Sidrap 1 and OMI acquisitions is subject to regulatory approvals and other customary conditions. The transaction expands Barito Renewables' portfolio of renewable energy assets, further enabling it to support Indonesia's net zero ambitions. The country has pledged to reach net zero emissions by 2060 and increase its renewable energy output to 23% by 2025.
Lead partner Melissa Ng said, "It's a privilege to advise Barito Renewables on this landmark transaction, which will contribute to the acceleration of Indonesia's energy transition and development of renewables. The complexity of this transaction, involving long-term partnerships, underscores the value of our deep sector expertise and understanding of South East Asia. We're honoured to play a part in Indonesia's journey towards net zero emissions."
Melissa was supported by counsel Stephanie Juwita Liman, associate Christie Long and trainee Jacie Lim. Assegaf Hamzah and Partners advised on Indonesian law.
Barito Renewables is a leading renewable energy company in Indonesia and part of the Barito Pacific Group. It owns the Star Energy Geothermal Group, the country's largest geothermal energy producer, which operates 886 MW of geothermal power plants including the Wayang Windu, Salak and Darajat projects in West Java.
Clifford Chance regularly advises on the most significant renewable energy transactions in Asia Pacific, most recently advising on the financing of the 1,022 MW Hai Long offshore wind farm project in Taiwan, the Elanora Consortium on the 5 GW offshore wind farm project in Australia and ACEN on its partnership with BrightNight for the development of renewable energy projects in India. The firm also previously advised Star Energy Geothermal on its dual tranche US$1.1 billion green project bond.