Masdar (aka Abu Dhabi Future Energy Company) the UAE’s leading company in clean energy, and PT PLN, Indonesia’s state-owned electricity company, have signed two agreements are intended to advance the development of floating solar power projects in southeast Asia’s largest energy market.
The two companies have signed a Memorandum of Understanding (MoU) to develop a floating solar power plant at the Jatigede Dam reservoir in West Java, following Masdar’s achievement in securing the lowest tariff in the Hijaunesia 2023 bidding programme. Development of the plant is due to start this year, with completion scheduled for 2027.
Masdar and PLN have also signed a ‘Principles of Agreement’ to explore the potential expansion of Masdar’s 145 MWac Cirata Floating Photovoltaic power plant, the first phase of which began operations in November 2023.
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, Indonesia’s president Prabowo announced plans to add over 75 GW of renewable energy capacity in the next 15 years as part of the country’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.
Masdar’s Cirata project is now generating enough renewable energy to displace 214 000 tonnes 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.
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.
Masdar has significantly increased its global renewable energy portfolio in the past two years, increasing overall capacity 150 % to 51 GW by the end of 2024, from 20 GW 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 100 GW by 2030 and to become a leading producer of green hydrogen by the same year.
