Indonesia’s first utility-scale floating solar power plant has reached financial close as the country pursued its goal of achieving a 23% renewable energy mix by 2025.

The 145-megawatt Cirata floating photovoltaic (PV) power plant is being developed by PT Pembangkitan Jawa Bali Masdar Solar Energi, a joint venture between Masdar (or Abu Dhabi Future Energy Company) and PT PJBI, a subsidiary of Indonesia’s state-owned electricity company Perusahaan Listrik Negara (PLN). Construction work on the project has begun and the plant is expected to start commercial operation in the fourth quarter of 2022.

The financing for the project, announced on August 3, was arranged through Sumitomo Mitsui Banking Corporation, Societe Generale and Standard Chartered.

The Cirata power plant, located on the 6,200-hectare Cirata reservoir in the West Java province, represents the United Arab Emirates’ first investment in Indonesia’s renewable energy sector. It is set to be the largest of its kind in Southeast Asia and one of the largest in the world. It will improve the capability of the Java-Bali power system and once completed, it will provide enough electricity to power 50,000 homes. The plant will offset 214,000 tonnes of carbon dioxide emissions and the project will also contribute to the creation of up to 800 jobs.

The plant is Masdar’s first floating solar PV project and throughout the project development, the company has conducted a series of social initiatives, raising awareness on sustainability issues and strengthening local community engagement.

PJBI president-director Amir Faisal says the project is a significant step in the company’s renewable energy journey and he sees tremendous potential for similar projects in Indonesia.

Indonesia is targeting 23% of its energy mix coming from renewables by 2025 under its electricity infrastructure acceleration programme. Scaling up renewables could save Indonesia as much as US$51.7 billion annually when the impacts on air pollution and climate change are included, according to the International Renewable Energy Agency (IRENA)

Masdar is a subsidiary of Abu Dhabi’s Mubadala Investment Company and one of the world’s leading international renewable energy development and investment companies. The power generating capacity of the renewable energy projects in which Masdar is a partner exceeds 5 gigawatts, representing a combined investment of about US$13.5 billion.