Pembangkitan Jawa Bali and Abu Dhabi Future Energy (Masdar) agreed on Tuesday (28/11) to develop what they said could become the world's largest floating photovoltaic plant. (Antara Photo/Idhad Zakaria)

PLN Unit and UAE's Masdar Plan World's Largest Floating Solar Plant in Indonesia


NOVEMBER 28, 2017

Jakarta.Pembangkitan Jawa Bali, a unit of state-owned power utility Perusahaan Listrik Negara, agreed with United Arab Emirates company Abu Dhabi Future Energy, or Masdar, on Tuesday (28/11) to develop what they said could become the world's largest floating photovoltaic plant.

PJB and Masdar will build a 200-megawatt floating photovoltaic (PV) power plant in the Cirata Dam, owned by PJB, in West Java, at a cost of $300 million.

"It's another step forward for basically developing and constructing not only the largest floating solar PV in Indonesia, but also in the world," Masdar chief executive Mohamed Jameel Al Ramahi said at the signing of the agreement.

PJB chief executive Iwan Agung Firstantara said the project, which would occupy about 225 hectares of the Cirata hydroelectric plant reservoir, "will accelerate renewable energy development in Indonesia."

The two companies aim to complete the first 50 MW of the project in the second quarter of 2019, with the remaining 150 MW targeted for early 2020. The pair completed a feasibility and grid interconnectivity study in September and aim to finalize a power purchase agreement with PLN before yearend.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said additional incentives were needed to make the project viable, referring to tax allowances and tax treaties between the UAE and Indonesia and other incentives. Arcandra also urged the developers to keep the project below the average power generation cost in the region.

"If you push for a tariff, for example, that's higher than the local average power generation cost, it is going to be difficult," he said.

Al Ramahi said the price per kilowatt-hour could be below 10 US cents, but declined to provide details.

"It will be a very attractive solution," he said.