Abu Dhabi Future Energy Company PJSC, known as Masdar, and PLN Nusantara Power (PLN NP) have entered into an agreement to expand Phase II of the Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500MW. This expansion will significantly increase the capacity of Southeast Asia’s largest FPV plant.
The signing ceremony was witnessed by UAE Minister of Energy and Infrastructure Suhail Mohamed Al Mazrouei, Indonesia’s Minister of Defense Prabowo Subianto, and Indonesia’s Coordinating Minister of Maritime and Investment Affairs Luhut Binsar Pandjaitan. UAE Ambassador to Indonesia and ASEAN Abdulla Salem Obaid Al Dhaheri and Indonesia’s Ambassador to the UAE Husin Bagis were also present. The ceremony took place during the UAE-Indonesia Economic Forum, which aimed to strengthen the clean energy partnership between the two countries.
The initial phase of the Cirata FPV project, with a capacity of 145MW, is located in the Cirata reservoir in West Java, Indonesia, and is expected to become operational later this year. A recent regulatory development in Indonesia now permits up to 20% of water coverage for renewable energy, which will enable the expansion of the Cirata project by an additional 500MW, in addition to the initial 145MW.
UAE Minister of Energy and Infrastructure stated, “The UAE and Indonesia share a common vision of achieving sustainable development, and we recognize that renewables are at the heart of this vision. I am pleased to see that this partnership has been taken to the next level. Such partnerships align with our priorities for COP28, where the energy transition will be at the forefront, with a concerted effort to triple renewable energy capacity by 2030.”
The UAE Ambassador to Indonesia remarked, “As we host the UAE-Indonesia Economic Forum, it is a pleasure to witness Indonesia and the UAE showcasing our leadership in climate action to the world, highlighting innovation that benefits both the environment and the economy, and supporting the global energy transition.”
Indonesia is a significant strategic market in Southeast Asia for Masdar, which has been expanding its portfolio in the country. Masdar developed the region’s largest floating solar facility, Cirata Phase I, in partnership with PT PJB, now PLN NP. In February 2023, Masdar made a strategic investment in Pertamina Geothermal Energy (PGE) to enter the geothermal energy sector. Masdar also established an office in Jakarta in 2021 to strengthen its ties with key stakeholders in the region.
Mohamed Jameel Al Ramahi, CEO of Masdar, noted, “Masdar, the UAE, and Indonesia are pushing the boundaries of innovation with the Cirata floating solar photovoltaic project, already the largest in the region at 145MW – and set to grow by an impressive additional 500MW as part of Phase II. Within the key strategic markets of Southeast Asia and Indonesia, Masdar is building on our productive partnership with PLN group to grow renewable energy capacity and support Indonesia’s ambitious net-zero objectives ahead of COP28 and beyond.”
Indonesia aims to increase its renewable energy share and has committed to achieving net-zero emissions by 2060 or earlier. The country has pledged to reduce greenhouse gas emissions by 29% by 2030, or 41% with international support.
This agreement, leading up to COP28 hosted by the UAE, demonstrates the UAE’s commitment to assisting countries worldwide with their decarbonization plans for a cleaner, greener future. According to the International Renewable Energy Agency (IRENA), scaling up renewables could save Indonesia, the largest energy user in the ASEAN region, up to $51.7 billion annually when considering the impacts on air pollution and climate change.
President Director of PLN NP, Ruly Firmansyah, stated, “We’re delighted to be growing our renewable energy portfolio for Indonesia as we extend our successful partnership with Masdar. The Cirata floating solar photovoltaic power plant is already a regional leader in size and innovation. With this next phase of development, we can further expand what is already the largest floating solar PV platform in Southeast Asia at 145MW, which PLN NP and Masdar will be bringing into operation this year.”
Masdar, established in 2006, is active in over 40 countries and has a total combined electricity generation capacity of over 20GW. The company has invested or committed to invest in projects worldwide valued at over $30 billion, with ambitious growth plans to reach 100GW and produce 1 million tonnes of green hydrogen by 2030.
