PT PLN (Persero), Indonesia’s state-owned electricity company, has signed two agreements with UAE’s renewable energy developer Masdar to advance the development of floating solar power projects in Indonesia.

The companies signed a memorandum of understanding (MOU) to build a floating solar power plant at the Jatigede Dam reservoir in West Java. It is due to start this year, with completion scheduled for 2027.

Masdar and PLN also signed a ‘Principles of Agreement’ to explore the potential expansion of Masdar’s 145-MWac Cirata floating photovoltaic power plant, the first phase of which began operations in November 2023.

Both agreements will contribute to Indonesia’s goal of achieving net-zero emissions by 2050. Last year, Indonesian President Prabowo Subianto announced plans to add over 75 GW of renewable energy capacity in the next 15 years as part of the country’s shift to a low-carbon economy. In February, the government established a new strategic investment management agency, Danantara Indonesia, designed to manage and enhance the global competitiveness of key state-owned enterprises, including PLN.

“The Jatigede project will be a strong addition to our collaboration with PLN and its 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. These agreements also demonstrate our continuing commitment to supporting Indonesia’s ambitious renewable energy objectives,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

“PLN is fully committed to leading Indonesia’s energy transition. These collaborations are a testament to the shared global effort needed to address the climate crisis. By expanding our renewable energy capacity, we’re reducing fossil fuel dependence, enhancing energy sustainability, and strengthening energy sovereignty while driving economic growth,” said Darmawan Prasodjo, president director of PT PLN (Persero).

Indonesia, the world’s largest archipelago with more than 17,000 islands and over 600 natural lakes and reservoirs, offers ideal conditions for the growth of floating solar power. Masdar’s Cirata project began operations in 2023, with the plant now generating enough renewable energy to power 50,000 homes, while displacing 214,000 t of carbon emissions per year.

Following regulatory changes increasing the proportion of water coverage allowed for renewable energy usage, Masdar and PLN signed an agreement in 2023 to work on jointly assessing the increase of Cirata’s capacity. This latest agreement follows the successful completion of studies into the feasibility of the expansion.