First Solar Inc. and PT. Pembangkitan Jawa Bali Services of Indonesia said Tuesday that they plan to work together to create a solar power plant there to help address the country's growing energy demands.
The companies did not put a dollar value on the preliminary agreement, which will result in a 100 megawatt utility-scale plant.
First Solar said that Indonesia has an increasingly urgent need for reliable, cost-effective energy resources and the company believes the market has great potential to make solar power part of that mix. This is the company's first agreement of the kind in Indonesia. It is trying to build more partnerships with other regional companies to expand its business worldwide.
The deal is also the first development of utility-scale solar photovoltaic power plants for PJB Services, which helps operate and maintenance of conventional power plants in Indonesia. Its parent company is PJB, a subsidiary of Perusahaan Listrik Negara.
Shares of First Solar jumped $1.84, or more than 8 percent, to close at $24.09.