Saudi Arabian renewables developer ACWA Power will enter the Indonesian market with two floating solar PV projects after being chosen by PT Perusahaan Listrik Negara (PLN), Indonesia’s only state-owned electricity utility.
The plants – Saguling Floating Solar PV project and Singkarak Floating Solar PV Project – will constitute 60MWac and 50MWac of capacity respectively, and mark both ACWA Power’s first floating PV project and its first installation in Indonesia.
The installations represent an investment of US$105 million combined.
ACWA holds a 49% stake in the projects, whilst the rest is owned by Indonesia power, a subsidiary of PLN.
The offtake partner in this deal and the sole state-owned electricity utility in the country, PLN controls and operates approximately 69% of generation capacity in Indonesia. As of the end of 2021, it controls over 64.5GW of generation capacity.
ACWA Power has said that the projects will help Indonesia reach its renewable energy target of 23% by 2025 as part of the country’s National General Energy Plan.
“[Indonesia] 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 Clive Turton chief investment officer of ACWA Power. “As we mark our market entry into Indonesia, we are committed to making a positive impact with our partners, offtaker and consumers.”
The Saudi company posted strong H1 results this year, reporting an operating income of US$307.46 million during the first half of 2022. It also operates another Southeast Asia facility, the 50MW Vin Hao 6 solar power plant in Vietnam.
The announcement comes as the largest Asian economies can expect exponential growth in their solar capacities through 2030, with the continent set to lead the global growth in floating PV installations over the next decade.
PLN and ACWA Power are yet to finalise the power purchase agreement for these projects.