Indonesia (Commonweath Union)_ Two floating solar photovoltaic (PV) power facilities will be built by the Saudi energy company ACWA Power under a contract with Indonesia’s state-owned utility PT Perusahaan Listrik Negara (PLN). Both the 50MWac floating solar project Singkarak and the 60MWac Saguling project are included under the deal.
ACWA Power Company is a Saudi developer, investor, and operator of power production, water desalination, and green hydrogen facilities. PT Perusahaan Listrik Negara (Persero), or PLN, is the sole state-owned electricity provider in Indonesia.
According to the nation’s National General Energy Plan, the projects would allow Indonesia to reach its 23% renewable energy target by 2025. This is ACWA Power’s first venture into Southeast Asia and one of its first projects to include floating solar PV. The facilities, which will go by the names Saguling Floating Solar PV Project and Singkarak Floating Solar PV Project, will have a capacity of 60 MWac and 50 MWac, respectively, and will represent a combined investment value of US$105 million. In both projects, Indonesia Power, a PLN subsidiary, has the remaining 51% interest, leaving ACWA Power with 49%.
PLN, the offtake partner in these projects, is in charge of, owns and runs over 69% of Indonesia’s generation capacity. The nation’s sole purchaser of electricity produced by independent power plants, including electricity produced using renewable energy sources, is also this state. Over 64.5 GW of Indonesia’s generating capacity will be under PLN’s ownership by the end of 2021. The power purchase agreements for these projects will then be completed by PLN and ACWA Power.
As one of the most populous nations on earth and a significant consumer of conventional energy sources, Clive Turton, Chief Investment Officer of ACWA Power, stated that any measures taken by Indonesia to reduce greenhouse gas emissions will have a significant impact on the global effort to combat climate change. “This country is a fascinating market for businesses like ACWA Power who are committed to the energy transition because of the strong backing of the government, awareness of global issues, high demand, and the pressing need to feed the vast population,” he said. “We are dedicated to having a good influence on our partners, offtake, and customers as we officially enter the Indonesian market.”