Abu Dhabi Future Energy Company (Masdar) and PLN Nusantara Power (PLN NP) have signed an agreement to develop Phase II of the Cirata floating photovoltaic (FPV) power plant in Indonesia.
The initial 145-megawatt phase of the innovative floating PV project, located at the Cirata reservoir in West Java, is expected to come online later this year. A recent directive from the Ministry of Public Works and Housing in Indonesia now allows up to 20% of water coverage for renewable energy uses, which means Cirata to add a further 500MW.
Indonesia is a key strategic market in Southeast Asia for Masdar, which also developed Cirata Phase I in a joint venture with PT PJB, now PLN NP. In February 2023, Masdar entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy. Masdar opened an office in the capital Jakarta to strengthen links with key players in the region.
The signing ceremony for the Cirata expansion was held at the UAE-Indonesia Economic Forum hosted by the UAE Embassy of Indonesia. It was witnessed by UAE minister of energy and infrastructure Suhail Al Mazrouei, Indonesia’s defence minister Prabowo Subianto, and Indonesia’s coordinating minister of maritime and investment affairs Luhut Binsar Pandjaitan. The United Arab Emirates is hosting COP28 at the Expo City in Dubai later this year.
Indonesia has plans to increase its renewable energy mix and has pledged to reach net-zero emissions by 2060 or sooner. The country has committed to a 29% reduction in greenhouse gas (GHG) emissions by 2030, or a 41% reduction with international support.
Scaling up renewables could save Indonesia, the largest energy user in the Asean region, as much as US$51.7 billion per year when the impacts of air pollution and climate change are included, according to the International Renewable Energy Agency.
Masdar is active in more than 40 countries with a total combined electricity generation capacity of more than 20 gigawatts. It has invested, or committed to invest, in worldwide projects with a combined value of more than US$30 billion with ambitious growth plans to reach 100GW and 1 million tonnes of green hydrogen by 2030.