Riau Islands province has welcomed a $5 billion solar power plant project, the largest in Indonesia, that could soon transform the province into a critical power supplier to neighboring Singapore.

The Riau Islands provincial government signed a memorandum of understanding with an independent power producer, Quantum Power Asia, and IB Vogt, Berlin-based project management and consultancy firm, for the power plant construction on Tuesday.

Under the deal, Quantum Power Asia and IB Vogt would build a solar power plant facility with a capacity of 3.5 gigawatts and battery storage with a capacity of 12 gigawatts hour on the islands.

The project would create around 30,000 jobs and build the world's largest photovoltaic (PV) storage system ever made to date, Simon G. Bell, Quantum Power Asia managing director and chief executive officer (CEO), said.

Quantum Power Asia and IB Vogt have formed a joint venture company called Anantara Energy to fund and build solar power plants in Indonesia.

In addition to meeting electricity needs in Indonesia, the solar power plant would export its electricity to Singapore. The companies also partnered with Union Energy Corporation, which is a leading power supplier in Singapore, as an importer and retail partner.

"After we are appointed as an electricity importer in Singapore, Quantum will bring in an investment of Rp 71.8 trillion or the equivalent of $5 billion," Bell said.

Riau Islands Governor H. Ansar Ahmad welcomes the deal that would place the archipelagic province at the forefront of Indonesia's green energy push.

“As one of the world's largest solar power plant locations, the Riau Islands welcomes this deal," Ansar said.

"It presents an answer for future clean energy needs, in line with the direction from President Joko Widodo," he said.

Indonesian Ambassador to Singapore, Suryopratomo, said the plant construction would be a part of the country's strategy to reduce greenhouse gas emissions by about 21 by 2060 and help Singapore fulfill its climate-change commitments.

"Hopefully, the implementation of this MoU will produce sustainable positive benefits for both countries," Suryopratomo said.

As part of the initiative to achieve carbon neutrality by 2050, Singapore's Energy Market Authority (EMA) has requested proposals for projects to supply clean energy from neighboring countries, including Indonesia.