Renewable-energy developer and investment company Asia Green Capital Partners has signed a memorandum of understanding (MoU) with the Government of South Sulawesi in Indonesia for the construction of 62.5MW Jeneponto 1 wind power plant.

Expected to reduce 120,000t of CO2 emissions annually, the facility is designed to generate 200GWh of power annually, to serve more than 450,000 people. It will be connected to the South Sulawesi electricity grid.

The project will help Indonesia increase its electrification ratio to 91% by 2019 from the current 65%.

Asia Green Capital Partners managing director Edgare Kerkwijk said: "Being one of the first large-scale wind projects in Indonesia, Jeneponto 1 will set a milestone in the country’s renewable-energy sector once it is completed."

The company expects to complete the project’s proprietary work by the end of this year.

International Finance Corporation (IFC), a member of the World Bank Group, will support the project through IFC InfraVentures.

IFC Indonesia country manager Sarvesh Suri said: "The project will provide a clean-energy source for the South Sulawesi grid, reducing the dependency on expensive and volatile fossil fuels and avoiding carbon emissions."

Asia Green Capital Partners is also planning to develop Jeneponto 2 in South Sulawesi, and a 20MW wind farm in West Timor.

Indonesia is believed to have potential resources to generate around 9,000MW of wind power. However, 30% of the population lacks access to electricity.