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Masdar achieves financial close on Indonesia's first floating PV plant

ABU DHABI, August 4, 2021

Leading renewable energy company Masdar said along with PT PJBI, a subsidiary of Indonesia’s state-owned electricity company PT PLN, it has achieved financial close on Cirata Floating Photovoltaic Power Plant project. The construction work has already begun on the 145 MW project.
 
Set to be the largest of its kind in Southeast Asia and one of the largest in the world, the plant is being built on the Cirata reservoir in the West Java Province. 
 
Once completed, it will provide enough electricity to power 50,000 homes, and will offset 214,000 tonnes of carbon dioxide emissions, and contribute to the creation of up to 800 jobs.
 
Financing for the project – Indonesia’s first floating solar power plant – was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank, said a statement from Masdar.
 
The 145-megawatt plant is being developed by PT. Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), a joint venture between Masdar and PT PJBI, and is expected to begin commercial operation in the fourth quarter of 2022.
 
Bahlil Lahadalia, Minister of Investment of Indonesia and Chairman of the Indonesia Investment Coordinating Board, said: "The Ministry of Investment fully supports the investment realisation of the Cirata Floating Solar Project by PT. PJBI and Masdar. This is a flagship project of the UAE’s investment in Indonesia, and most importantly, it is in line with the Indonesian Government target in renewable energy mix of 23 percent by 2025."
 
"This project represents the UAE’s first investment in Indonesia’s renewable energy sector, and we look forward to furthering collaboration between our countries, as we leverage our natural resources to build a more sustainable future," he added.
 
Abdulla Salem Al Dhaheri, UAE Ambassador to Indonesia and the ASEAN region, said, "Reaching this historic milestone demonstrates the strength of the relationship between the UAE and Indonesia. The UAE is committed to promoting and investing in clean energy projects around the world and taking positive action on climate change. We stand together with Indonesia on driving sustainable development and we will continue to support the nation’s clean energy transition."
 
Throughout the development of the project, Masdar has conducted a series of social initiatives, raising awareness on sustainability issues and strengthening local community engagement.
 
CEO Mohamed Jameel Al Ramahi said: "This achievement would not have been possible without the constant support of the Government of Indonesia, our lenders, and our strategic partnership with PJBI and PT PLN, who have been with us on every step of our journey. The designation of this project as a National Strategic Project has been invaluable in enabling us to make such significant progress and demonstrates that the government recognises the economic and social benefits the Cirata project will bring to the local community and all of Indonesia."
 
Amir Faisal of PJBI, said: "This floating power project is a first for Indonesia, and is also a significant step in PJBI’s renewable energy journey. We see tremendous potential for similar projects in Indonesia and we look forward to continuing our fruitful collaboration with Masdar to work on more renewable energy projects and help our nation achieve its clean energy objectives."



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