Abu Dhabi’s clean energy company Masdar signed a power purchase agreement with Indonesia’s state electricity company, Perusahaan Listrik Negara (PLN) to develop the country’s first floating solar photovoltaic plant in the West Java region.
The 145 megawatt plant is Abu Dhabi-headquartered company’s first venture within the South East Asian market, and builds on the UAE’s strong relationship with Indonesia, Masdar said in a statement on Wednesday.
“This agreement between Masdar and Perusahaan Listrik Negara marks a significant milestone in Indonesia’s sustainable energy journey,” said Dr Sultan bin Ahmad Al Jaber, UAE minister of state and chairman of Masdar.
He added that Masdar will continue to support the development of renewable energy projects in the South East Asia market, where there is “tremendous potential.”
Indonesia is the largest energy user in the Association of South East Asian Nations region, and the country is targeting to procure 23 per cent of its energy from renewables by 2025, gradually increasing this share to 31 per cent by 2030.
The new plant, which will also be Masdar’s first floating solar PV project, will be built on a 225-hectare plot within the 6,200-hectare Cirata Reservoir. Commercial operations are targeted to start in 2022. The total investment in the project is undisclosed.
Masdar is developing the plant with Pembangkitan Jawa-Bali, a subsidiary of PLN.
"The Cirata floating PV project is a monumental renewable energy project for Indonesia, and the biggest floating PV in South East Asia. It will improve the capability of the Jawa-Bali power system and also increase the renewable energy mix in Indonesia,” said Zulkifli Zaini, president director, PLN.
Masdar, fully owned by Mubadala Investment Company, is a major player in the renewable energy sector across the globe. The power generating capacity of the renewable energy projects in which Masdar is a partner exceeds 5 gigawatts, representing a combined investment of approximately $13.5 billion (Dh49.57).
The UAE signed various agreements with Indonesia earlier this month, including a deal to invest $23bn in the Asian country through a sovereign wealth fund created by its President Joko Widodo.
Abu Dhabi National Oil Company also signed a preliminary agreement with Indonesia's Pertamina and Chandra Asri to explore the possibility of developing a crude-to-petrochemicals complex in the South East Asian country, in addition to potentially supplying naphtha.
Last year, state-owned firms such as Adnoc, Mubadala Investment Company and port operator DP World inked deals worth $10bn to $15bn with Indonesian companies during an official visit by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces to Jakarta.
