BANK PERSPECTIVE ON SOLAR PV ENERGY (PLTS) PROJECT BANKABILITY IN INDONESIA Tungky Ariwibowo and Antonius Siahaan

Siahaan, Antonius TP. BANK PERSPECTIVE ON SOLAR PV ENERGY (PLTS) PROJECT BANKABILITY IN INDONESIA Tungky Ariwibowo and Antonius Siahaan. In: 2nd International Conference on Global Innovation and Trend in Economy 2020, 5 November 2020, Jakarta.

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Abstract

Lack of bankability project becomes one of the major concerns in the slow development of renewable energy in Indonesia. As of October 2019, there are 27 Power Purchase Agreements (PPAs) that have not reached financial close and 5 projects have been terminated out of 75 PPAs signed between 2017 – 2018. Despite being the most abundant renewable energy source in Indonesia, there are only 152 MW Solar PV1 powerplant (PLTS) installed or about 0.028% of the total potential. This study aims to understand how the commercial bank’s perspective on Solar PV project bankability is influenced by several bankability criteria. In this research, there are five classifications of bankability criteria which are strength of sponsor, political and legal environment, project’s financial strength, transaction characteristic, and mitigation and security package. The survey is distributed to the commercial banks that ranked in the top 35 based on its total capital which covers banks with BUKU 4, 3, and 2. The result indicates that how the banks perceived Solar PV project bankability is influenced by their perception of the project’s financial strength and transaction characteristic criteria. This describes that the focus of the commercial banks in determining project bankability is the success in developing and operating the project to meet its financial obligation. Keywords: Project Bankability, Commercial Bank, Solar PV Project, Strength of Sponsor, Political and Legal Environment, Project’s Financial Strength, Transaction Characteristic, Mitigation and Security Package

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance.
Depositing User: Antonius Siahaan
Date Deposited: 12 Apr 2023 10:48
Last Modified: 12 Apr 2023 10:48
URI: http://repository.sgu.ac.id/id/eprint/2556

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