PLN Nusantara Power (PLN NP) and UAE’s clean energy company Masdar have signed an agreement to develop phase two of the Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500 MW, in a major expansion to the largest FPV plant in Southeast Asia.
The first 145 MW phase of the floating PV project, located in the Cirata reservoir in West Java, is expected to become operational later this year.
A recent regulatory development from the Ministry of Public Works and Housing in Indonesia allows for up to 20% of water coverage for renewable energy uses. This will open up the Cirata expansion to a further 500 MW in capacity, in addition to the 145 MW expected to be operational this year.
Indonesia is a key strategic market in Southeast Asia for Masdar. The company has developed the region’s biggest floating solar facility, the 145 MW Cirata floating solar PV plant in a joint venture with PLN NP.
In February, Masdar entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy.
Indonesia has plans to increase its renewable energy share and has committed to achieving net-zero by 2060 or sooner. The Southeast Asian nation has also pledged to reduce its greenhouse gas emissions by 29% by 2030 or by 41% with foreign assistance.
Scaling up renewables could save up to US$ 51.7 billion per year for Indonesia, the largest energy user in the ASEAN. These savings consider the impacts on air pollution and climate change, as reported by the International Renewable Energy Agency.