In a significant development for renewable energy in Southeast Asia, Abu Dhabi Future Energy Company PJSC, commonly known as Masdar, and PLN Nusantara Power (PLN NP) have signed an agreement to expand Phase II of the Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500MW. This expansion marks a substantial increase to the already impressive Cirata FPV plant, currently the largest in Southeast Asia.
The signing ceremony, held during the UAE-Indonesia Economic Forum and attended by high-level dignitaries including UAE Minister of Energy and Infrastructure HE Suhail Al Mazrouei, Indonesia’s Minister of Defense HE Prabowo Subianto, and Indonesia’s Coordinating Minister of Maritime and Investment Affairs HE Luhut Binsar Pandjaitan, solidified the commitment to clean energy cooperation between the two nations.
The initial phase of the Cirata floating PV project, with a capacity of 145MW, is situated in the scenic Cirata reservoir in West Java, Indonesia. This phase is expected to become operational later this year. Following recent regulatory changes by the Ministry of Public Works and Housing in Indonesia, which allow up to 20% of water coverage for renewable energy applications, the expansion of the Cirata project will add an additional 500MW to the existing capacity of 145MW.
HE Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, highlighted the shared vision of sustainable development between the UAE and Indonesia, emphasizing renewables as a key driver. He stated, “Such partnerships feed into our priorities for COP28, where the energy transition will be front and center with a concerted push to triple renewable energy capacity by 2030.”
The Ambassador of the United Arab Emirates to the Republic of Indonesia and ASEAN, HE Abdulla Salem Obaid Salem Al Dhaheri, hailed the collaboration as a demonstration of both nations’ leadership in climate action and innovation supporting the global energy transition.
Indonesia holds strategic importance for Masdar, which has been actively expanding its presence in the country. Masdar, in partnership with PLN NP, developed the region’s largest floating solar facility, Cirata Phase I. Additionally, Masdar entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy (PGE) earlier this year. The company also established an office in Jakarta in 2021 to strengthen ties with key stakeholders in the region.
Mohamed Jameel Al Ramahi, Masdar’s CEO, expressed enthusiasm for the project’s growth, stating, “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.”
Indonesia has committed to increasing its renewable energy mix and aims to achieve net-zero emissions by 2060 or sooner. As a part of its pledge, Indonesia has targeted a 29% reduction in greenhouse gas emissions by 2030, with the potential for a 41% reduction with international support. This expansion agreement comes ahead of COP28, which will be hosted in the UAE later this year, demonstrating the UAE’s commitment to assisting countries worldwide in their decarbonization efforts.
According to the International Renewable Energy Agency (IRENA), scaling up renewables in Indonesia, the largest energy consumer in the Association of Southeast Asian Nations (ASEAN), could result in annual savings of up to US$ 51.7 billion when factoring in the impact on air pollution and climate change.
Ruly Firmansyah, President Director of PLN NP, expressed delight at the renewable energy portfolio’s expansion, highlighting the continued partnership with Masdar. He stated, “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.”