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Wed 15 Jan 2020 02:11 PM

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UAE's Masdar inks agreement for first floating solar project in Indonesia

Masdar has signed a power purchase agreement with Perusahaan Listrik Negara, the state electricity company in Indonesia

UAE's Masdar inks agreement for first floating solar project in Indonesia

Dr Sultan bin Ahmad Al Jaber, UAE Minister of State and chairman of Masdar.

Abu Dhabi-based renewable energy giant Masdar has signed a power purchase agreement (PPA) with Perusahaan Listrik Negara (PLN), the state electricity company in Indonesia, for the first floating solar photovoltaic plant in the country.

The 145MW PV plant, which will also be Masdar’s first floating solar PV project, will be built on a 225-hectare plot of the 6200-hectare Cirata Reservoir, in the West Java region.

Construction is expected to begin soon, with commercial operation likely to start in 2022.

Dr Sultan bin Ahmad Al Jaber, UAE Minister of State and chairman of Masdar, said: “The UAE has demonstrated a longstanding commitment to promoting and investing in clean energy projects around the world. This agreement between Masdar and Perusahaan Listrik Negara marks a significant milestone in Indonesia’s sustainable energy journey.

"Masdar will continue to support the development of renewable energy solutions in the Southeast Asia market, where we see tremendous potential, given the region’s rapid economic growth.”

The project is Masdar’s first venture into the Southeast Asian market, and builds on the UAE’s strong relationship with Indonesia, he added.

"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.

Indonesia is the largest energy user in the Association of Southeast Asian Nations (ASEAN) region, and the country is targeting 23 percent of its energy mix coming from renewables by 2025, rising to 31 per cent by 2030.

The country is the world’s largest archipelago, comprising more than 17,000 islands, and with 521 natural lakes and more than 100 reservoirs, covering about 21,000 square km.

Indonesia is currently considering plans to install floating solar PV plants on an additional 60 reservoirs.

Masdar is a subsidiary of Abu Dhabi’s Mubadala Investment Company. The power generating capacity of the renewable energy projects in which Masdar is a partner exceeds 5GW, representing a combined investment of approximately $13.5 billion.

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