Singapore, 20 November 2025 – Pentagreen Capital (“Pentagreen”), manager of a blended finance strategy under Singapore’s Financing Asia’s Transition Partnership (“FAST-P”) initiative, and Tinfund Pte Ltd (“Tinfund”), a joint venture between Tinfos AS and Norfund, today announced the signing of a financing facility of up to US$45 million to support the implementation of small run-of-river power plants in Indonesia.
The multi-tranche Construction Loan (“the Loan”) will finance a series of projects developed by Tinfund in Indonesia with an initial funding of US$18 million for the Nagajaya power plant in Banten province on Java Island. The facility is designed to expand, allowing the efficient scale up of Tinfund’s portfolio of run-of-river projects.
Indonesia’s 2025–2034 Electricity Supply Business Plan (the “RUPTL”) calls for 42.6GW of additional renewable energy by 2034, representing 76% of the total planned new power generation capacity.
Small run-of-river power plants provide stable, reliable renewable energy supply to the grid and have significantly higher capacity factors – the ratio of actual energy produced to maximum possible production – than intermittent renewable sources such as solar or wind. This supports Indonesia’s industrial development and rural electrification strategy, contributes to its energy independence and reduces carbon emissions. However, financing run-of-river plants like these can be challenging due to their distributed and small-scale nature.
The Pentagreen debt facility provides a blueprint for financing this asset class repeatedly and efficiently, unlocking the delivery of stable and reliable electricity to the grid from local Indonesian renewable resources. The projects have been developed in line with best practice IFC Environmental and Social Standards.
The Nagajaya plant is expected to deliver 34 GWh of renewable energy to the grid annually, based on a capacity factor of approximately 65%. This generates enough clean energy to power approximately 4,700 households, resulting in an estimated 29,700 tonnes of carbon dioxide (CO2) emissions avoided annually.
Marat Zapparov, CEO of Pentagreen Capital said: “Indonesia’s abundant domestic renewable resources provide the country with a competitive edge in delivering sustainable and climate-smart industrial growth and prosperity for its population. Pentagreen Capital, under Singapore’s FAST-P initiative, is honoured to partner with Tinfos, a company with a track record of more than 130 years operating highest-quality small run-of-river assets, and Norfund, a leading investor in sustainable businesses and industries in emerging countries. Together, we are unlocking finance for a pipeline of projects developed in accordance with the highest level of environmental, social and governance standards.”
Øyvind Frydenberg, CEO of Tinfos said: “This partnership marks an important milestone in our commitment to accelerating the energy transition in Southeast Asia. By leveraging Tinfos’ extensive experience in developing and operating medium-sized run-of-river plants together with Pentagreen’s innovative financing solutions, we are creating a scalable model to deliver reliable renewable energy to Indonesia’s grid. Pentagreen’s facility enables Tinfos to accelerate development and construction across its project pipeline. Together with Norfund, our trusted partner and 35% owner in Tinfund, we are committed to creating lasting impact by supporting local communities and industries with sustainable power, contributing to Indonesia’s long-term energy security and development goals.”
Bjørnar Baugerud, head of the Climate Investment Fund in Norfund said: “The Climate Investment Fund is delighted to invest together with Tinfos and unlock up to $45 million of financing for small-scale run-of-river power plants in Indonesia from Pentagreen. Through our collaboration, we're channelling vital resources into scalable, low-impact run-of-river projects that bolster Indonesia's renewable energy ambitions and drive meaningful progress toward a low-carbon future.”
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