UAE's Masdar JV closes financing for 145-MW floating PV project in Indonesia

Construction on Indonesia’s first utility-scale floating solar power plant has started

  
Masdar joint venture starts construction on Indonesia’s first utility-scale floating solar power plant. Image Courtesy: WAM

Masdar joint venture starts construction on Indonesia’s first utility-scale floating solar power plant. Image Courtesy: WAM

ABU DHABI - Masdar, one of the world’s leading renewable energy companies; and PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN, announced on Tuesday that financial close has been achieved on the Cirata Floating Photovoltaic Power Plant project and construction work has begun.

Financing for the project – Indonesia’s first floating solar power plant – was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank, said a Masdar press release.

The 145-megawatt (ac) plant 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.

Bahlil Lahadalia, Minister of Investment of Indonesia and Chairman of the Indonesia Investment Coordinating Board, said, "The Ministry of Investment fully supports the investment realisation of the Cirata Floating Solar Project by PT. PJBI and Masdar. 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 percent by 2025."

He stressed that "this project represents the UAE’s first investment in Indonesia’s renewable energy sector, and we look forward to furthering collaboration between our countries, as we leverage our natural resources to build a more sustainable future." Abdulla Salem Al Dhaheri, UAE Ambassador to Indonesia and the ASEAN region, said, "Reaching this historic milestone demonstrates the strength of the relationship between the UAE and Indonesia. The UAE is committed to promoting and investing in clean energy projects around the world and taking positive action on climate change. We stand together with Indonesia on driving sustainable development and we will continue to support the nation’s clean energy transition."

Set to be the largest of its kind in Southeast Asia and one of the largest in the world, the plant is being built on the Cirata reservoir in the West Java Province. Once completed, it will provide enough electricity to power 50,000 homes, and will offset 214,000 tonnes of carbon dioxide emissions, and contribute to the creation of up to 800 jobs.

Throughout the development of the project, Masdar has conducted a series of social initiatives, raising awareness on sustainability issues and strengthening local community engagement.

Mohamed Jameel Al Ramahi, CEO of Masdar, commented, "This achievement would not have been possible without the constant support of the Government of Indonesia, our lenders, and our strategic partnership with PJBI and PT PLN, who have been with us on every step of our journey. The designation of this project as a National Strategic Project has been invaluable in enabling us to make such significant progress and demonstrates that the government recognises the economic and social benefits the Cirata project will bring to the local community and all of Indonesia."

Amir Faisal of PJBI, said, "This floating power project is a first for Indonesia, and is also a significant step in PJBI’s renewable energy journey. 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, the world's largest archipelago nation, is targeting 23 percent of its energy mix coming from renewables by 2025 under its Electricity Infrastructure Acceleration Programme.

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 percent, from 30 percent in its previous plan, said the press release.

© Copyright Emirates News Agency (WAM) 2021.


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