Final Funding Secured for 145-megawatt Floating Solar Power Plant of Indonesia

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The largest Southeast Asian project of a 145-megawatt floating solar power plant secured its final funding approval. It is being built by UAE and Indonesia and will start the operation by next year.

Masdar and PJBI have secured $140 million from multinational lenders for the project’s financing.

PJBI CEO, Gong Matua Hasibuan, said, “We passed the critical phase of reaching financial close on Aug. 2 when our lenders Standard Chartered bank, Sumitomo Mitsui Banking Corp., and Societe Generale confirmed that we have fulfilled all the requirements to get funding for this project.”

Indonesia’s state-owned enterprises’ deputy minister, Pahala Nugraha Mansury, said, “The Cirata floating power plant is expected as a venue for a transfer of technology in renewable energy development from UAE’s leading global renewable energy firm. Indonesia hoped the link-up would strengthen cooperation with the UAE.”

Last year, the President of Indonesia, Joko Widodo secured an investment agreement in Abu Dhabi of $22.9 billion and this floating power plant is one of the projects agreed upon.

The floating power plant will cover 250 hectares or 3% of the total area of the Cirata reservoir and construction of the same has already started. In this area, PJBI already operates a 1,008-megawatt hydropower plant.

PLN’s CEO, Zulkifli Zaini, said, “We are optimistic that with all the stakeholders’ support, this environmentally friendly power plant project could start its operation on target by the end of 2022. The Cirata floating solar power plant will contribute about 0.2 percent to our renewable energy mix.”

From plants that generate 63 GW of energy which is operated by PLN, 7.9 GW comes from renewable sources.

The country could create 40 GW of energy from identified 375 locations on lakes and reservoirs, the Ministry of Energy and Mineral Resources said.

It was feasible for the country to use 100% of the power generated by renewable energy as per a report by the Jakarta-based Institute for Essential Services Reform. This would need a minimum of $20 billion investment annually for the remaining decade, rising to $60 billion annually from 2030 to 2040.

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