Masdar JV Reaches Financial Close On Indonesia’s First Floating Solar Plant

UAE-based renewable energy company Masdar and its partner PT PJBI announced today that their joint venture (JV) has achieved the financial close on the Cirata Floating Solar Power Plant project in Indonesia.

The construction work of Indonesia’s first-ever floating solar power plant has begun. PT. PMSE (Pembangkitan Jawa Bali Masdar Solar Energi) is the JV of both companies, which is developing the 145 MW floating solar plant and is expecting to begin commercial operation in the fourth quarter of 2022.

PT PJBI is a subsidiary of Indonesia’s state-owned electricity company PT PLN. “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.

Funding for the project was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank. The plant is claimed to be the largest of its kind in Southeast Asia and one of the largest in the world. This plant is being built on the Cirata reservoir in the West Java Province.

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On completion, it is expected to produce enough electricity to power 50,000 homes, to offset 214,000 tons of CO2 emissions, and to create over 800 jobs.

Jameel Al Ramahi, CEO of Masdar said that  “The designation of this project as a National Strategic Project (PSN) has been invaluable in enabling us to make such significant progress and demonstrates that the Government recognizes the economic and social benefits the Cirata project will bring to the local community and all of Indonesia.”

Indonesia is targeting to get 23% of its energy mix from renewables by 2025 under its Electricity Infrastructure Acceleration Program. The government also recently announced that it aims to increase the proportion of renewable power in its 2021-2030 national electricity plan to at least 48%, from 30% in its previous plan.

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Recently, Masdar made another announcement of its first investment in Greece for developing a 65 megawatts (MW) solar PV project with Taaleri Energia, a firm that invests in solar and wind assets.

For Indonesia, Sunseap and BP Batam also recently announced a massive 2.2 Gwp floating solar project.