Masdar And PT PLN Sign Agreements To Enhance Floating Solar Power In Indonesia

Abu Dhabi Future Energy Company PJSC – Masdar, a leader in clean energy from the UAE, and Indonesia's state-owned electricity company PT PLN (Persero) have signed two agreements. These agreements aim to advance floating solar power projects in Southeast Asia's largest energy market. The collaboration includes a Memorandum of Understanding (MoU) for developing a floating solar plant at the Jatigede Dam reservoir in West Java.

Masdar secured the lowest tariff in the Hijaunesia 2023 bidding programme, paving the way for this development. The project is set to begin this year and is expected to be completed by 2027. Additionally, Masdar and PLN signed a 'Principles of Agreement' to explore expanding Masdar's 145MWac Cirata Floating Photovoltaic Power Plant, which started operations in November 2023.

The agreements were formalised during Prabowo Subianto's state visit to the UAE. Mohamed Jameel Al Ramahi, CEO of Masdar, and Dr. Darmawan Prasodjo, President Director of PT PLN (Persero), were the signatories. These collaborations strengthen UAE-Indonesia ties and support Indonesia's goal of net-zero emissions by 2050.

Last year, President Prabowo announced plans to add over 75GW of renewable energy capacity within 15 years as part of Indonesia’s low-carbon transition. In February, Danantara Indonesia was established to manage strategic investments and enhance competitiveness among key state-owned enterprises like PLN.

Mohamed Jameel Al Ramahi stated, "The Jatigede project will be a strong addition to our collaboration with PLN... These agreements also demonstrate our continuing commitment to supporting Indonesia’s ambitious renewable energy objectives." This highlights Masdar’s dedication to sustainable growth through renewable projects.

Commitment to Energy Transition

Darmawan Prasodjo emphasised PLN’s commitment: "PLN is fully committed to leading Indonesia’s energy transition... By expanding our renewable energy capacity, we’re reducing fossil fuel dependence..." This reflects PLN's focus on sustainability and economic growth through renewable energy expansion.

Masdar's Cirata project began operations in 2023, generating enough power for 50,000 homes while reducing carbon emissions by 214,000 tonnes annually. Regulatory changes allowed increased water coverage for renewable use, leading Masdar and PLN to agree on assessing Cirata’s capacity increase after successful feasibility studies.

Strategic Investments and Future Plans

Indonesia offers favourable conditions for floating solar power with its vast archipelago of over 17,000 islands. It remains a key strategic partner for the UAE in Southeast Asia. In 2023, Masdar entered the geothermal sector with a strategic investment and opened an office in Jakarta in 2021 to strengthen regional ties.

Masdar has significantly expanded its global renewable portfolio over two years, increasing capacity by 150% from 20GW in 2022 to an expected 51GW by end-2024. The company aims for a portfolio capacity of 100GW by 2030 and seeks leadership in green hydrogen production by then.

These developments underscore Masdar's commitment to advancing clean energy solutions globally while fostering strong international partnerships that drive sustainable progress across regions like Southeast Asia.

With inputs from WAM