Saudi Arabia based developer, investor, and operator of power generation and green hydrogen plants, ACWA Power Company, has said that PT Perusahaan Listrik Negara (Persero) or PLN, Indonesia’s state-owned electricity utility, has chosen ACWA Power to develop two floating solar PV projects in Indonesia.
ACWA Power said that this marks first foray into Indonesia, as well as the company’s first floating solar PV projects in its portfolio. Named the Saguling Floating Solar PV project and Singkarak Floating Solar PV Project, the facilities will have a capacity of 60MWac and 50MWac respectively and represent a combined investment value of $105million.
ACWA Power said that it has a 49% equity stake in both projects, with the rest being held by Indonesia Power, a subsidiary of PLN.
The offtake partner in these projects, PLN, controls, owns, and operates approximately 69% generation capacity in Indonesia. PLN is also the sole buyer of electricity produced by independent power plants in the country, including electricity generated from renewable energy sources. As a next step, PLN and ACWA Power will finalize the power purchase agreements for these projects.
Clive Turton, Chief Investment Officer, ACWA Power, said, “For companies like ACWA Power, who are intent on the energy transition, this country is an exciting market as there is government support, an understanding of global challenges, considerable demand and an urgent need to supply the country’s numerous residents. As we mark our market entry into Indonesia, we are committed to making a positive impact with our partners, offtaker and consumers.”
ACWA Power said that the projects will enable Indonesia to achieve its renewable energy target. of 23% by 2025. The target has been decided under the country’s National General Energy Plan.
ACWA Power also mentioned that the Saguling and Singkarak projects are its second and third projects in the Southeast Asia region, after the Vinh Hao 6 Power Plant, a 50MW project in Vietnam.