Masdar and Indonesia’s state-owned power company PT PLN have reached financial close and begun construction of a 145MW floating solar project.
Financing for the Cirata floating photovoltaic project, Indonesia’s first plant of its kind, was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank.
The plant is being developed by PT Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), a joint venture between Masdar and PT PLN subsidiary PT PJBI.
It is expected to begin commercial operation in the fourth quarter of 2022.
“The Ministry of Investment fully supports the investment realization of the Cirata Floating Solar Project by PT PJBI and Masdar.
“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 renewable energy mix of 23% by 2025,” said Bahlil Lahadalia, Minister of Investment for the Republic of Indonesia and chairman of the Indonesia Investment Coordinating Board.
The plant, set to be the largest of its kind in south-east Asia and one of the largest in the world, is being built on the Cirata reservoir in the West Java Province.
The project will contribute to the creation of up to 800 jobs.
Throughout the development of the project, Masdar has conducted a series of social initiatives, raising awareness on sustainability issues and strengthening local community engagement.
“This floating power project is a first for Indonesia and is also a significant step in PJBI’s renewable energy journey,” said Amir Faisal, president director of PJBI.
“We see tremendous potential for similar projects in Indonesia and we look forward to continuing our fruitful collaboration with Masdar to work on more renewable energy projects and help our nation achieve its clean energy objectives,” he added.