TGRA has aspired to become a clean energy Indepedent Power Producer (IPP) since 2008, yet to this day not a single project has been completed. Is it really that difficult?
PT Terregra Asia Energy Tbk (TGRA) is a company operating in the electricity sector and has been in business since 1995. In August 2023, TGRA announced plans to develop seven hydropower projects with a total value of IDR 12.38 trillion. About 70% of the project funding is expected to come from bank loans, with the remaining 30% sourced from investors.
According to TGRA’s Finance Director, Daniel Tagu Dedo, the initial phase of funding from banks and investors has been successfully secured. The next stage involves the issuance of green bonds worth IDR 500 billion.
It was also stated that TGRA holds potential for 39%—or approximately 510.8 megawatts—of hydropower capacity relative to Indonesia’s 2030 energy transition target.
Five months later, as of the publication of this article, there has been no further update regarding the progress of this funding.
TGRA has long dreamed of transforming itself into an electricity generation company in Indonesia—since 2008, to be exact. Fifteen years later, not a single power plant has been completed or brought into operation. The road to realizing this ambition has proven to be highly convoluted.
Will TGRA succeed this time?
