- ACWA Power signs MoU to develop 110 MW AC floating solar power capacity in Indonesia
- It will develop this capacity as 2 projects with 60 MW AC and 50 MW AC capacity for $105 million
- For ACWA Power, this transaction marks its entry into the Indonesian market and also its 1st tryst with floating PV technology
Saudi Arabian energy company ACWA Power is venturing into Indonesia and into floating solar PV technology under a memorandum of understanding (MoU) with the Indonesian state-owned electricity utility PT Perusahaan Listrik Negara (Persero or PLN) to build 110 MW AC capacity in the form of 2 projects.
Of the 2 facilities, Saguling Floating Solar PV Project will have 60 MW AC capacity while Singkarak Floating PV facility will sport 50 MW AC capacity. Together, the 2 projects will represent a combined investment of $105 million. These will contribute to Indonesia’s renewable energy target of 23% in the total electricity mix by 2025.
Controlling majority of the national electricity output and the sole buyer of electricity from independent power plants, PLN will be the only offtaker for both the facilities and also own 51% stake in these through its subsidiary Indonesia Power. The remaining 49% equity stake in both will be held by the Saudi company. Both the companies plan to finalize power purchase agreements (PPA) for these projects in the near future.
“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,” said ACWA Power’s Chief Investment Officer Clive Turton.
For Indonesia though this is not its 1st brush with floating solar PV technology and a cooperation with a company from the Arabian Peninsula. Abu Dhabi’s Masdar is already working on a 145 MW AC floating PV facility on Cirata Reservoir in West Java, which is due to come online in Q4/2022 (see Financial Closure For 145 MW AC Floating PV Project).