UAE – Mubasher: Masdar, a subsidiary of Mubadala Investment Company and one of the world’s top renewable energy companies, has collaborated in a power purchase agreement (PPA) with Perusahaan Listrik Negara (PLN) to develop Indonesia's first floating solar photovoltaic (PV) plant.

The project marks Masdar’s first venture into the Southeast Asian market and contributes to enhancing bilateral relations between the UAE and Indonesia, according to a press release on Wednesday.

The signing ceremony took place on Sunday 12 January at the Presidential Palace in Abu Dhabi and was attended by the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan, and, President of Indonesia, Joko Widodo.

Built over a 225-hectare plot of the 6,200-hectare Cirata Reservoir in the West Java region, the 145-megawatt (MW) PV plan marks Masdar’s first floating solar PV project.

Commenting on the partnership, UAE Minister of State and chairman of Masdar, Sultan bin Ahmad Al Jaber, said, “Leveraging innovative solutions such as this floating solar PV project will be critical to the nation achieving its renewable targets and to supporting its sustainable growth.”

Furthermore, president director, PLN, Zulkifli Zaini, explained that the Cirata floating PV project “will improve the capability of the Jawa-Bali power system and also increase the renewable energy mix in Indonesia.”

Construction on the project is expected to commence soon while the commercial operation is likely to take place in 2022.

Moreover, Indonesia targets to provide 23% of its energy mix from renewables by 2025 and 31% by 2030. Increasing renewables could save Indonesia as much as $51.7 billion annually with the impacts on air pollution and climate change included, according to the International Renewable Energy Agency (IRENA).

It is worth pointing out that Masdar is developing the plant with PT Pembangkitan Jawa-Bali (PT PJB), a subsidiary of PLN.