Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy leader, and PT PLN (Persero), Indonesia’s state-owned electricity company, have signed two agreements for the advancement of the floating solar power projects for the largest energy market in Southeast Asia. The two companies also signed a ‘Principles of Agreement’ for the potential expansion of Masdar’s 145MWac Cirata Floating Photovoltaic Power Plant, that began its operations in 2023.
The companies signed a Memorandum of Understanding (MoU) to collaborate on the development of a floating solar power plant at the Jatigede Dam reservoir in West Java after Masdar secured the lowest tariff in the Hijaunesia 2023 bidding program. Construction is set to begin this year, with the project expected to be completed by 2027.
The deals were signed during Indonesian President H.E. Prabowo Subianto’s state visit to the UAE, with Masdar CEO Mohamed Jameel Al Ramahi and PT PLN President Director Dr. Darmawan Prasodjo representing their respective companies.
The agreement is focused on the collaboration of the two countries working towards contributing to the country’s goal of achieving net zero by 2050.
President Prabowo announced a year back, their intentions to add over 75 GW of renewable energy capacity in the next 15 years, supporting Indonesia’s shift to a low-carbon economy. In a related move, the government also established a new strategic investment management agency- Danantara Indonesia, last February. It was designed to manage and enhance the global competitiveness of important state-owned enterprises, such as PLN.
Mohamed Jameel Al Ramahi, CEO of Masdar said, “The Jatigede project will be a strong addition to our collaboration with PLN, and its development, along with the expansion of our already record-breaking Cirata project, will enable us to build on our expertise in developing floating solar projects.”
“These agreements also demonstrate our continuing commitment to supporting Indonesia’s ambitious renewable energy objectives. We look forward to building on the already powerful partnership we enjoy with PLN to further explore developing renewable energy projects that drive sustainable growth in Indonesia,” he added.
Darmawan Prasodjo, President Director of PT PLN (Persero), also added, “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.”
Masdar’s groundbreaking Cirata project began operations in 2023, with the facility now producing sufficient renewable energy to supply 50,000 households, while eliminating 214,000 tonnes of carbon emissions annually.
After regulatory changes permitted a higher proportion of water coverage for renewable energy projects, Masdar and PLN entered into an agreement in 2023 to jointly evaluate the increasing capacity of Cirata. This new agreement comes after the successful conclusion of feasibility studies for the expansion.
Indonesia is a key strategic partner in Southeast Asia for the UAE, where it has an expanding portfolio of interests, including a strategic investment in 2023, marking Masdar’s entry into the geothermal energy sector. However, Masdar, in addition to opening an office in Jakarta in 2021, has significantly increased its global renewable energy portfolio in the past two years, with an overall extended capacity of 150 percent to 51 GW by the end of 2024, from 20 GW in 2022. The company has developed and partnered in projects in over 40 countries, aiming to increase its renewable energy portfolio capacity to 100GW by 2030 and hence becoming a leading producer of green hydrogen.