· UAE’s Masdar signs agreement with PLN Nusantara Power (PLN NP) for major expansion to successful 145MW Cirata floating solar photovoltaic power plant in Indonesia
· Development will triple capacity to add up to 500 megawatts (MW) in joint venture with PLN NP, a subsidiary of Indonesia’s state electricity company PT PLN (Persero)
· Ahead of the UAE hosting COP28, development demonstrates Masdar’s market expansion in Southeast Asia and commitment to supporting Indonesia’s net-zero goals
Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy powerhouse, and PLN Nusantara Power (PLN NP), have signed an agreement to develop Phase II of the successful Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500MW, in a major expansion to Southeast Asia’s largest FPV plant.
The signing ceremony was witnessed by UAE Minister of Energy and Infrastructure, HE Suhail Al Mazrouei, Indonesia’s Minister of Defense, HE Prabowo Subianto, and Indonesia’s Coordinating Minister of Maritime and Investment Affairs, HE Luhut Binsar Pandjaitan. Also in attendance were the UAE Ambassador to Indonesia, ASEAN and Timor Leste, HE Abdulla Al Dhaheri, and Indonesia’s Ambassador to the UAE, HE Husin Bagis. The ceremony was held at the UAE-Indonesia Economic Forum hosted by the UAE Embassy of Indonesia to deepen the clean energy partnership between the two nations.
The initial 145MW phase of the innovative floating PV project, located in the picturesque Cirata reservoir in West Java, Indonesia, is expected to come online later this year. A recent regulatory development from the Ministry of Public Works and Housing in Indonesia now allows up to 20% of water coverage for renewable energy uses which will open up the Cirata expansion to a further 500MW, in addition to the 145MW expected to be operational this year.
HE Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, said: “The UAE and Indonesia share a common vision of achieving sustainable development and realize that renewables are at the heart of this vision. I am pleased to see that this partnership has been taken to the next level. Such partnerships feed into our priorities for COP28, where the energy transition will be front and center with a concerted push to triple renewable energy capacity by 2030.”
The Ambassador of the United Arab Emirates to the Republic of Indonesia and ASEAN, HE Abdulla Salem Obaid Salem Al Dhaheri, commented: “As we host the UAE-Indonesia Economic Forum, it is a pleasure to witness Indonesia and the UAE demonstrating to the world our collective leadership in climate action, showcasing innovation that benefits both the environment and the economy in supporting the global energy transition.”
Indonesia is a key strategic market in Southeast Asia for Masdar with an expanding portfolio of interests. Masdar developed the region’s largest floating solar facility, the 145 MW Cirata floating solar PV plant (Cirata Phase I) in a joint venture with PT PJB, now PLN NP. In February 2023, Masdar entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy (PGE). Masdar also opened an office in Jakarta, Indonesia, in 2021 to further strengthen links with key players within the region.
Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, commented, “Masdar, the UAE and Indonesia are pushing the boundaries of innovation with the Cirata floating solar photovoltaic project, already the largest in the region at 145MW – and set to grow by an impressive additional 500MW as part of Phase II. Within the key strategic markets of Southeast Asia and Indonesia, Masdar is building on our productive partnership with PLN group to grow renewable energy capacity and support Indonesia’s ambitious net-zero objectives ahead of COP28 and beyond.”
Indonesia has plans to increase its renewable energy mix and has pledged to reach net-zero emissions by 2060 or sooner. The Southeast Asian nation has committed to a 29% reduction in greenhouse gas (GHG) emissions by 2030, or a 41% reduction with international support. Ahead of COP28 to be hosted in the UAE later this year, the Memorandum of Understanding (MoU) expansion agreement demonstrates the UAE’s commitment to supporting countries around the world with their decarbonization plans for a cleaner, greener future.
Scaling up renewables could save Indonesia, the largest energy user in the Association of Southeast Asian Nations (ASEAN) region, as much as US$ 51.7 billion per year when the impacts on air pollution and climate change are included, according to the International Renewable Energy Agency (IRENA).
President Director of PLN NP, Ruly Firmansyah, said: “We’re delighted to be growing our renewable energy portfolio for Indonesia as we extend our successful partnership with Masdar. The Cirata floating solar photovoltaic power plant is already a regional leader in size and innovation. With this next phase of development, we can further expand what is already the largest floating solar PV platform in Southeast Asia at 145MW which PLN NP and Masdar will be bringing into operation this year.”
Established in 2006, Masdar is active in more than 40 countries with a total combined electricity generation capacity of more than 20GW. It has invested, or committed to invest, in worldwide projects with a combined value of more than US$30 billion with ambitious growth plans to reach 100GW and 1 million tonnes of green hydrogen by 2030.