Masdar, one of the world’s leading renewable energy companies, and PT PJBI, a subsidiary of Indonesia’s state-owned electrical provider PT Perusahaan Listrik Negara (PT PLN), has announced that the Cirata Floating Photovoltaic Power Plant project has reached financial close and construction work has begun.
Indonesia’s first floating solar power plant is financed through Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank.
Pembangkitan JawaBali Masdar Solar Energy (PMSE), a joint venture between Masdar and PT PJBI, is constructing the 145-megawatt plant which is expected to start commercial operations in the fourth quarter of 2022.
The plant is being built on the Cirata reservoir in West Java Province and will be the largest of its kind in Southeast Asia and one of the largest in the world. It will generate enough electricity to power 50,000 homes, will offset 214,000 tons of CO2 emissions, and contribute to the creation of up to 800 jobs once completed.
“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 recognizes the economic and social benefits the Cirata project will bring to the local community and all of Indonesia.”
Masdar has undertaken a range of social initiatives throughout the project’s development, promoting awareness of sustainability issues and strengthening local community engagement.
Indonesia, the world’s biggest archipelago nation, seeks renewables to account for 23 percent of its energy mix by 2025 as part of its Electricity Infrastructure Acceleration Program. The government has recently revealed that under its 2021-2030 national electricity plan, it aims to increase the share of renewable energy to at least 48 percent, up from 30 percent in its previous plan.