UAE: Masdar and Indonesia Signs and MOU of Two Floating Solar Power Plant

UAE: Masdar and Indonesia Signs and MOU of Two Floating Solar Power Plant

Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy leader, and PT PLN (Persero), Indonesia’s state-owned electricity company, have signed two agreements that will advance the development of floating solar power projects in Southeast Asia’s largest energy market.

The companies signed a Memorandum of Understanding (MoU) to develop a floating solar power plant at the Jatigede Dam reservoir in West Java, after Masdar secured the lowest tariff in the Hijaunesia 2023 bidding program. Development of the plant is due to start this year, with completion scheduled for 2027.

Masdar and PLN also signed a ‘Principles of Agreement’ to explore the potential expansion of Masdar’s 145MWac Cirata Floating Photovoltaic Power Plant, the first phase of which began operations in November 2023.

The agreements were signed on the sidelines of the state visit of H.E. Prabowo Subianto, President of the Republic of Indonesia, to the UAE. The signatories were Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Dr. Darmawan Prasodjo, President Director of PT PLN (Persero).

The agreements build on the UAE’s strong relationship with Indonesia and will contribute to the country’s goal of achieving net-zero emissions by 2050. Last year, President Prabowo announced plans to add over 75GW of renewable energy capacity in the next 15 years as part of Indonesia’s shift to a low-carbon economy.

In February, the government established a new strategic investment management agency, Danantara Indonesia, designed to manage and enhance the global competitiveness of key state-owned enterprises, including PLN.

Indonesia is a key strategic partner in Southeast Asia for the UAE, where it has an expanding portfolio of interests, including a strategic investment in 2023 that marked Masdar’s entry into the geothermal energy sector. Masdar opened an office in Jakarta in 2021 to further strengthen links with key players within the region.