UAE's Masdar JV closes financing for 145-MW floating PV project in Indonesia
Cirata Floating Photovoltaic Power Plant scheduled to begin commercial operation in Q4 2022
Masdar and PT PJBI have announced that financial close has been achieved on the Cirata Floating Photovoltaic Power Plant project and construction work has begun.
Financing for the project, Indonesia’s first floating solar power plant, was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank. The 145-megawatt (ac) plant is being developed by PT. Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), a joint venture between Masdar and PT PJBI, and is expected to begin commercial operation in the fourth quarter of 2022.
His Excellency Bahlil Lahadalia, Minister of Investment for the Republic of Indonesia and Chairman of the Indonesia Investment Coordinating Board, said:
“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 percent by 2025. This project represents the UAE’s first investment in Indonesia’s renewable energy sector, and we look forward to further collaboration between our countries, as we leverage our natural resources to build a more sustainable future.”
His Excellency Abdulla Salem Al Dhaheri, Ambassador of the United Arab Emirates to the Republic of Indonesia and the ASEAN region, said:
“Reaching this historic milestone demonstrates the strength of the relationship between Indonesia and the United Arab Emirates. The UAE is committed to promoting and investing in clean energy projects around the world, and to taking positive action on climate change. We stand together with Indonesia on driving sustainable development and we will continue to support the nation’s clean energy transition.”
The plant, set to be the largest of its kind in Southeast Asia and one of the largest in the world, is being built on the Cirata reservoir in the West Java Province. Once completed, it will provide enough electricity to power 50,000 homes, and will offset 214,000 tons of carbon dioxide emissions, and 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.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:
“This achievement would not have been possible without the constant support of the Government of Indonesia, our lenders, and our strategic partnership with PJBI and PT PLN, who have been with us on every step of our journey. 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 to all of Indonesia.”
Amir Faisal, President Director of PJBI, said:
“This floating power project is a first for Indonesia, and is also a significant step in PJBI’s renewable energy journey. 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.”
Indonesia, the world's largest archipelago nation, is targeting 23 percent of its energy mix coming 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 percent, from 30 percent in its previous plan.