Vena Energy says it will collaborate with China's Suntech, battery cell producer REPT Battero, and US energy platform Powin to develop an integrated production line for solar panel and energy storage system components in Indonesia.

The companies said the 2.5 GW framework agreement covers opportunities for the expansion of Indonesia’s renewable energy supply chain, with the components slated for both domestic and export markets. They will also be used in Vena’s solar-storage project being developed at Batam in the Riau Islands.

Vena Energy, which has commissioned 114 MW of solar and onshore wind projects in Indonesia, said the Batam solar power plant will have a capacity of up to 2 GW and will be coupled with battery systems with a potential storage capacity of more than 8 GWh.

Vena Energy Chief Executive Officer Nitin Apte said clean energy generated by the plant will be exported from Batam to Singapore, which is only 30 nautical miles away, with the company having inked a deal with global energy giant Shell. Apte said the company has signed a “collaboration agreement” with Shell for the “cross-border supply” of renewable energy generated by the proposed hybrid megaproject.

Although Vena Energy has yet to provide timeline details for the Batam project, the establishment of local production lines for solar panel and energy storage system components is expected to play a key role in its delivery.

Apte said the companies aim to “significantly contribute” to the development of a productive domestic supply chain in the renewable energy sector. He said the strategy will foster industrial expansion and open export opportunities, as well as support Indonesia’s energy transition plan.

For Suntech, the agreement builds upon an already established presence in Indonesia.

The Chinese manufacturer is already operating a 500 MW capacity solar module factory in Batam. Suntech said it expects the collaboration with Vena would significantly increase that factory’s capacity.