The UAE’s Masdar and PT PLN (Persero), Indonesia’s state-owned electricity company, signed two agreements today that will advance the development of floating solar power projects in Southeast Asia’s largest energy market.
The companies signed a Memorandum of Understanding (MoU) to develop 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. Development of the plant is due to start this year, with completion scheduled for 2027.
The two companies also signed a ‘Principles of Agreement’ to explore the potential expansion of Masdar’s 145MWac Cirata Floating Photovoltaic Power Plant, the first phase of which began operations in November 2023.
Masdar to support Indonesia’s net-zero ambitions
The agreements were signed on the sidelines of the state visit of H.E. Prabowo Subianto, President of the Republic of Indonesia, to the UAE. The signatories were Mohamed Jameel Al Ramahi, CEO of Masdar, and Dr. Darmawan Prasodjo, President Director of PT PLN (Persero).
The agreements build on the UAE’s strong relationship with Indonesia and will contribute to the country’s goal of achieving net-zero emissions by 2050. Last year, President Prabowo announced plans to add over 75GW of renewable energy capacity in the next 15 years as part of Indonesia’s shift to a low-carbon economy.
In February, the government established a new strategic investment management agency, Danantara Indonesia, designed to manage and enhance the global competitiveness of key state-owned enterprises, including PLN.
“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,” stated Mohamed Jameel Al Ramahi, CEO of Masdar.
Masdar’s Cirata project to expand
Masdar’s innovative Cirata project began operations in 2023, with the plant now generating enough renewable energy to power 50,000 homes while displacing 214,000 tons of carbon emissions per year. Following regulatory changes increasing the proportion of water coverage allowed for renewable energy usage, Masdar and PLN signed an agreement in 2023 to work on jointly assessing the increase of Cirata’s capacity. This latest agreement follows the successful completion of studies into the feasibility of the expansion.
“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,” stated Darmawan Prasodjo, president director of PT PLN (Persero).
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Masdar expands Southeast Asia portfolio
Indonesia, the world’s largest archipelago, with more than 17,000 islands and over 600 natural lakes and reservoirs, offers ideal conditions for the growth of floating solar power.
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 that marked Masdar’s entry into the geothermal energy sector. Masdar opened an office in Jakarta in 2021 to further strengthen links with key players within the region.
Masdar has significantly increased its global renewable energy portfolio in the past two years, increasing overall capacity 150 percent to 51GW by the end of 2024, from 20GW in 2022. The company has developed and partnered in projects in over 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100GW by 2030 and to become a leading producer of green hydrogen by the same year.
