Masdar, an Abu Dhabi Future Energy Company, has finalised a deal with Perusahaan Listrik Negara (PLN) for a 500 MW expansion of a floating solar plant in Southeast Asia. The agreement covers Phase II of the Cirata project in West Java, Indonesia, which is projected to achieve 145 MW of capacity in 2023.
Moreover, the initial phase was also built by Masdar and PLN NP, previously known as PT PJB, a subsidiary of Indonesia’s state energy provider, PT PLN. Reportedly, the facility’s expansion by 500 MW was made possible by a recent regulatory modification by the Ministry of Public Works and Housing that allows for up to 20 per cent water coverage for renewable energy usage.
In September 2023, PLN was looking to add 32 GW of renewable energy and invest in a transmission system that could connect to renewable energy. As per the new plan, 75 per cent of the additional generation capacity of the company is based on renewables, and 25 per cent will be gas-based.
REGlobal’s Views: Indonesia is an important market for Masdar in the southeast Asian region not just in the solar space but also in the geothermal space and Masdar recently entered the geothermal sector in the country with strategic investment in Pertamina Geothermal Energy. The company also opened an office in Jakarta in 2021 to further expand its reach in the region.
