Masdar, one of the world’s leading renewable energy companies, announced the formation of a joint venture (JV) with PT Mitrabara Adiperdana Tbk (Mitrabara), a conglomerate focused on the energy sector, to target the fast-growing commercial & industrial (C&I) segment of the renewable energy market in Indonesia.
The JV, PT Masdar Mitra Solar Radiance, which will operate under the Solar Radiance brand, was formally launched at a ceremony on the sidelines of Abu Dhabi Sustainability Week (ADSW) 2022, held this week in the UAE capital. Angela Soedjana, Director of Baramulti Group, a shareholder of Mitrabara, attended the event, along with Hidefumi Kodama, General Manager, Coal and Energy Solution Department, Idemitsu, also a shareholder of Mitrabara, and Khoirudin, Chief Executive Officer of Mitrabara. Masdar was represented by Fawaz Al Muharrami, Acting Executive Director, Clean Energy.
Khoirudin, Chief Executive Officer of Mitrabara, said, “With the growing need for companies to reduce their carbon footprint, availability of renewable energy has become one of the key drivers for investment decisions. Indonesia unfortunately is lagging behind our peers in the region for this issue. We believe that Solar Radiance will be able to accelerate the implementation of Solar Energy solutions in Indonesia, especially since Solar Energy is an abundant resource that is still underutilized. The knowledge, experience, and expertise that Masdar and Mitrabara bring to the joint venture is unique in the market and will ensure the best solution for our customers.”
Fawaz Al Muharrami, Acting Executive Director, Clean Energy of Masdar, said, “Solar Radiance will support the energy diversification efforts of our commercial and industrial customers in Indonesia, and make a positive contribution on climate action. As both international and domestic customers in Indonesia require more and more competitive and renewable energy in order to meet their own emission reduction targets, we look forward to working with Mitrabara on serving this market segment and to further expanding our presence within the country and the region at large. We are delighted to lend our support toward achieving our common climate goals and pushing for net-zero emissions.”
His Excellency Abdulla Salem Al Dhaheri, Ambassador of the United Arab Emirates to the Republic of Indonesia and the ASEAN, said, “The UAE and Indonesia share common goals on climate action and diversification of the energy mix, and a vision of a greener, more sustainable future. This joint venture represents a step toward achieving those objectives and delivering sustainable economic growth. Through Masdar, the UAE is ready to support Indonesia’s energy transition journey, and we look forward to many more fruitful collaborations in the future.”
The Solar Radiance venture will help Masdar further expand its presence in Indonesia, and support the nation’s clean energy and climate objectives. With Indonesia targeting at least 51 percent of added power capacity coming from renewable sources by 2030, the C&I segment is expected to enjoy very rapid growth, The new venture will also boost Masdar’s knowledge of the local market, and deepen its penetration in the renewables sector.
Masdar entered the Indonesian market in 2020, forming a joint venture with PT PJBI, a subsidiary of Indonesia’s state electricity company, to drive the development of the Cirata Floating Photovoltaic Power Plant, the country’s first floating solar project, and one of the largest in the world. Masdar announced a financial close on the project last August, and it is expected to begin commercial operation in the fourth quarter of this year.
Established in 1992, Mitrabara has a longstanding history in the energy sector, with extensive knowledge and expertise in the field.
The move supports Indonesia’s plans towards achieving net-zero emissions by 2060 or sooner, with renewable energy providing up to 85 percent of the energy mix by that date. The nation, the largest energy consumer in the Association of Southeast Asian Nations (ASEAN), is targeting reducing greenhouse gas emissions by 41 percent by 2030 with international assistance.