Masdar JV starts construction on Indonesia’s first utility-scale floating solar power plant

Abu-Dhabi headquartered renewable and clean energy company Masdar, along with its joint venture partner, said on Tuesday that financial close had been achieved on the Cirata Floating Photovoltaic Power Plant project in Indonesia and that construction work on it had begun.

Masdar has partnered with PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN. Financing for the project, which is Indonesia’s first floating solar power plant, was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank.

The 145-megawatt (ac) plant is being developed by PT. Pembangkitan Jawa Bali Masdar Solar Energi (PMSE) is expected to begin commercial operation in the fourth quarter of 2022.

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.

Indonesia is targeting 23 percent of its energy mix to come 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 per cent, from 30 per cent in its previous plan.

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. This project represents the UAE’s first investment in Indonesia’s renewable energy sector, and we look forward to furthering collaboration between our countries.”

Mohamed Jameel Al Ramahi, CEO of Masdar, added, “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. 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.”