UAE-based clean energy firm Masdar has signed two agreements with Indonesia’s state utility PT PLN (Persero) to advance floating solar power development in Southeast Asia’s largest energy market, the company said on Monday.

The deals were formalized during the state visit of Indonesian President Prabowo Subianto to the UAE, highlighting deepening energy ties between the two nations.

One of the agreements, a memorandum of understanding, will see Masdar develop a floating solar power plant at the Jatigede Dam in West Java, after securing the lowest tariff in Indonesia’s Hijaunesia 2023 renewable energy bidding round.

Construction of the Jatigede project is expected to begin this year, with completion slated for 2027.

A second agreement, a Principles of Agreement, was signed to explore expanding the Cirata Floating Photovoltaic Power Plant.

The 145-megawatt-alternating-current Cirata facility began operations in November 2023 and currently powers around 50,000 homes while offsetting 214,000 tonnes of carbon emissions annually.

Strategic Expansion to Support Indonesia’s Energy Transition

“This development, along with the expansion of our already record-breaking Cirata project, will enable us to build on our expertise in developing floating solar projects,” said Masdar CEO Mohamed Jameel Al Ramahi.

Indonesia, an archipelago of more than 17,000 islands, has considerable potential for floating solar development due to its extensive system of reservoirs and lakes.

Regulatory changes in 2023 have increased the allowable water surface area that can be used for renewable energy.

Masdar opened a Jakarta office in 2021 and has since expanded its renewable energy interests in Indonesia, including a strategic entry into the geothermal sector last year.

“PLN is fully committed to leading Indonesia’s energy transition,” said Darmawan Prasodjo, President Director of PT PLN (Persero). “These collaborations are a testament to the shared global effort needed to address the climate crisis.”

The agreements align with Indonesia’s target of achieving net-zero emissions by 2050 and adding over 75GW of renewable capacity over the next 15 years.

Masdar, formally known as Abu Dhabi Future Energy Company PJSC, has rapidly scaled up its global renewables portfolio, reaching 51GW by the end of 2024. It aims to grow its capacity to 100GW and become a leading green hydrogen producer by 2030