Renewable energy company, Masdar, and PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN, have achieved financial close on the Cirata floating photovoltaic power plant project and construction work has begun.
The 145MW plant, said to be the largest of its kind in Southeast Asia, is being developed by PT. Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), a joint venture between Masdar and PT PJBI, and is expected to begin commercial operation in the fourth quarter of 2022.
The plant is being built on the Cirata reservoir in the West Java Province and once completed will provide enough electricity to power 50,000 homes, offsetting 214,000 tons of carbon dioxide emissions.
“This floating power project is a first for Indonesia, and is also a significant step in PJBI’s renewable energy journey,” said Amir Faisal, President Director of PJBI. “We see tremendous potential for similar projects in Indonesia and we look forward to continuing our fruitful collaboration with Masdar to work on more renewable energy projects and help our nation achieve its clean energy objectives.”
Indonesia is aiming to reach 23% of its energy mix from renewables by 2025 under its Electricity Infrastructure Acceleration Programme, according to Masdar. The government also recently announced that it aims to increase the proportion of renewable power in its 2021-2030 national electricity plan to at least 48%, from 30% in its previous plan.
“This is a flagship project of the UAE’s investment in Indonesia, and most importantly, it is in line with the Indonesian Government target in renewable energy mix of 23% by 2025,” said His Excellency Bahlil Lahadalia, Minister of Investment for the Republic of Indonesia and Chairman of the Indonesia Investment Coordinating Board. “This project represents the UAE’s first investment in Indonesia’s renewable energy sector, and we look forward to further collaboration between our countries, as we leverage our natural resources to build a more sustainable future.”
Financing for the project, Indonesia’s first floating solar power plant, was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank.