Masdar Signs Partnership for 145 MW Floating Solar Plant in Indonesia

• Masdar has signed a PPA with PLN, the state electricity company in Indonesia, for the first floating solar photovoltaic (PV) plant in the country.

Masdar, one of the world’s leading renewable energy companies, has signed a power purchase agreement (PPA) with Perusahaan Listrik Negara (PLN), the state electricity company in Indonesia, for the first floating solar photovoltaic (PV) plant in the country.

The 145-megawatt (MW) floating solar 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. The firm is developing the plant with PT Pembangkitan Jawa-Bali (PT PJB), a subsidiary of PLN. 

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 (PLN) marks a significant milestone in Indonesia’s sustainable energy journey. Leveraging innovative solutions such as this floating solar PV project will be critical to the nation achieving its renewable targets and to support its sustainable growth. 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. 

“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, and director, PLN. “The potential of similar projects is endless and we anticipate construction should begin soon, aiming for commercial operation in 2022.”

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 percent by 2030. Scaling up renewables could save Indonesia as much as USD 51.7 billion per year when the impacts on air pollution and climate change are included, according to the International Renewable Energy Agency (IRENA).