Abu Dhabi-based renewable energy group Masdar is sailing into the Southeast Asian solar market with Indonesia’s first floating solar power plant. The developer has claimed that the project will be the largest of its kind in the region.
From pv magazine Australia
Abu-Dhabi-based renewable energy giant Masdar has signed a power purchase agreement (PPA) with Indonesian state electricity company Perusahaan Listrik Negara (PLN). The deal will facilitate the development of the country’s first floating PV plant, with Masdar claiming that it will be the largest of its kind in Southeast Asia.
The agreement was finalized with a formal exchange of documents at the presidential palace in Abu Dhabi on Sunday. The ceremony, attended by Abu Dhabi’s Crown Prince Sheikh Mohamed bin Zayed Al Nahyan and Indonesian President Joko Widodo, represents a coup for both parties, as Abu Dhabi looks to diversify its energy portfolio and Indonesia seeks solutions to the energy integration issues faced by every archipelagic state.
The project, a 145 MW floating PV plant, will be built on a 225-hectare section of the Cirata Reservoir in West Java. Indonesia is a massive archipelago consisting of more than 17,000 islands, 521 natural lakes, and more than 100 reservoirs. Indonesia is planning floating PV installations at an additional 60 locations as it pushes toward its target of 23% renewables by 2025, and 31% by 2030.
Indonesia is the biggest consumer of energy in the Association of Southeast Asian Nations (ASEAN), so it is no wonder that the country is eager to scale up renewables in its energy mix. The International Renewable Energy Agency (IRENA) estimates that Indonesia could save as much as $51.7 billion per year, considering the effects of air pollution and climate change.
“The Cirata floating PV project is a monumental renewable energy project for Indonesia, and the biggest floating PV in Southeast Asia. It will improve the capability of the Jawa-Bali power system and also increase the renewable energy mix in Indonesia,” said Zulkifli Zaini, president director of PLN. “The potential of similar projects is endless and we anticipate construction should begin soon, aiming for commercial operation in 2022.”
Masdar is one of the world’s leading renewable energy developers and is at the forefront of the transition to renewables in the oil-rich Persian Gulf region. “The United Arab Emirates has demonstrated a longstanding commitment to promoting and investing in clean energy projects around the world,” said Sultan Ahmed Al Jaber, UAE minister of state and chairman of Masdar.
In the last few months alone, Masdar won an auction to build 200 MW of solar in Azerbaijan, 100 MW of PV in Uzbekistan, and 400 MW of solar in Armenia. Its renewable energy portfolio currently stands at roughly 5 GW, backed by a total investment of approximately $13.5 billion.
“This agreement between Masdar and PLN marks a significant milestone in Indonesia’s sustainable energy journey,” said Al Jaber. “Leveraging innovative solutions such as this floating solar PV project will be critical to the nation achieving its renewable energy targets and to supporting its sustainable growth.”
By Blake Matich
Source: pv magazine