UAE’s Masdar secures financing for Indonesia’s first floating solar plant

    26 Aug 2021

    Abu Dhabi-based clean energy major Masdar and PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN, have announced the financial close on the Cirata floating photovoltaic power plant project, Arabian Business reports.

    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 Masdar which added that construction work has begun.

    The 145-megawatt 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: “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 the renewable energy mix of 23 percent by 2025.”

    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 worldwide 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 globally, 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.

    Mohamed Jameel Al Ramahi (pictured above), CEO of Masdar, said: “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.”

    Indonesia, the world’s largest archipelago nation, is targeting 23% of its energy mix coming from renewables by 2025 under its Electricity Infrastructure Acceleration Program.At the same time, ACWA Power, the utility developer backed by Saudi Arabia’s Public Investment Fund (PIF), is looking at markets in Central Asia and parts of Southeast Asia, such as Vietnam, Indonesia, and Bangladesh.

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