Masdar And PLN To Develop Floating Solar In Indonesia

Masdar and PLN partner to develop floating solar projects in Indonesia, advancing renewable energy goals.

Masdar And PLN To Develop Floating Solar In Indonesia

In a major move towards speeding up Indonesia's renewable energy shift, Abu Dhabi Future Energy Company PJSC – Masdar has entered into two historic agreements with Indonesia's state electricity company PT PLN (Persero). The historic agreements, signed during the state visit of Indonesian President H.E. Prabowo Subianto to the United Arab Emirates, will spearhead the growth and development of floating solar power in Southeast Asia's biggest energy market.

The initial agreement is a Memorandum of Understanding (MoU) for the construction of a new floating solar power plant at the Jatigede Dam reservoir in West Java. The project comes after Masdar's successful involvement in the 2023 Hijaunesia program, where it emerged with the lowest tariff bid, cementing its competitive advantage in clean energy development. Construction will start in 2024, with the project due for completion in 2027. The new project further expands Masdar's expanding presence in Indonesia, as a deepening partnership between the UAE renewable energy giant and PLN.

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi pointed to the strategic significance of the Jatigede project and stressed how it leverages the company's expanding experience in floating solar power. "The Jatigede project will be a significant addition to our partnership with PLN and the development of its expansion and ours from the record-breaking Cirata project will allow us to expand on our experience in developing floating solar projects," he said. Al Ramahi also reiterated Masdar's commitment to backing Indonesia's renewable energy aspirations, especially its target to achieve net-zero emissions by 2050.

Joining the Jatigede development, Masdar and PLN have also signed a 'Principles of Agreement' for the potential growth of the 145MWac Cirata Floating Photovoltaic Power Plant—the largest floating solar power plant in Southeast Asia. In operation since November 2023, the Cirata power plant now generates clean electricity for around 50,000 homes and reduces emissions by an estimated 214,000 tonnes of carbon dioxide a year. Its growth follows a sequence of regulatory reforms allowing for a larger percentage of renewable energy infrastructure covering water surfaces as of now. These reforms had made feasibility studies done in 2023 feasible and set up the ground for the subsequent stage of development.

PLN President Director, Dr. Darmawan Prasodjo, underscored the strategic importance of this partnership in Indonesia’s broader energy transition. “PLN is fully committed to leading Indonesia’s energy transition. These collaborations are a testament to the shared global effort needed to address the climate crisis. By expanding our renewable energy capacity, we’re reducing fossil fuel dependence, enhancing energy sustainability, and strengthening energy sovereignty while driving economic growth,” he said.

Indonesia, a country that is an archipelago of over 17,000 islands and over 600 natural reservoirs and lakes, is best positioned for floating solar projects. The geographical predisposition, together with regulatory and institutional backing, places the country at the forefront of becoming a world leader in the installation of floating solar technology. The nation has undertaken a challenge to install 75GW of renewable energy capacity over the next 15 years as part of its plan to reach net-zero emissions by 2050. Floating solar will be pivotal in fulfilling this goal, providing a flexible and sustainable option that uses a small amount of land and causes minimal disruption to the environment.

To support its clean energy agenda, the government of Indonesia also set up Danantara Indonesia, a strategic investment management firm responsible for maximizing the assets of core state-owned companies such as PLN and enhancing the international competitiveness of Indonesia in sustainable energy.

Masdar, which established its Jakarta office in 2021, has been quickly expanding its business in Indonesia. In 2023, the firm also ventured into the geothermal energy business, further cementing its position in the region's renewable energy sector. Internationally, Masdar has made significant progress, expanding its renewable energy portfolio from 20GW in 2022 to 51GW by the last quarter of 2024. It is targeting 100GW of capacity and the status of a top manufacturer of green hydrogen by 2030.

These new deals represent an important page in the developing energy partnership between the UAE and Indonesia. They underpin the UAE's strategic investment in the energy future of Southeast Asia while affirming Masdar's leadership in developing pioneering, innovative, and sustainable energy solutions worldwide. With Indonesia continuing to advance its decarbonization plan, deals such as these will be pivotal in providing clean, reliable, and affordable energy to millions.

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