- The project, with a 92-megawatt peak capacity, marks ACWA Power's first venture.
- Indonesia Power, PLN's subsidiary, will hold a 51% equity stake in the project.
- The Saudi Ambassador emphasized the potential of the project to attract investments.
Perusahaan Listrik Negara, Indonesia’s state power company, signed a power purchase agreement with ACWA Power on Tuesday to develop the Saguling Floating Solar Photovoltaic Project in West Java province.
This project will feature a 92-megawatt peak capacity, marking ACWA Power’s first venture in Southeast Asia’s largest economy.
PLN’s subsidiary, Indonesia Power, will hold a 51 percent equity stake in the project, with ACWA Power owning the remaining share. PLN stated on Thursday that this collaboration will help expand Indonesia’s clean energy reach.
“Global warming is a huge challenge, but it also offers us extraordinary opportunities for development and collaboration, whether through strategies, technology innovation, or investments.
“We want to make sure that the future generation will have a better future than our own, and everything begins with this extraordinary collaboration,” PLN President Director Darmawan Prasodjo said.
“We truly appreciate ACWA Power for the signing of this PPA agreement. This is just the beginning and it is symbolic of even bigger opportunities for cooperation between Saudi Arabia and Indonesia.”
Last year, renewables made up about 13 percent of Indonesia’s energy mix, with coal and oil meeting most of the country’s power needs.
As one of the world’s largest greenhouse gas emitters, Indonesia, with a population of 270 million, has committed to achieving a 23 percent share of renewable power in its energy mix by 2025.
The target will receive a boost from another planned collaboration with ACWA Power to develop a 77-megawatt peak floating solar photovoltaic project in Singkarak, West Sumatra province. Together, both projects will be valued at approximately $105 million.
“This is the start of many more renewable energy investments from the Kingdom of Saudi Arabia in Indonesia,” Saudi Ambassador to Indonesia Faisal Abdullah Amodi told the News.
“ACWA Power is committed to do mega-sized projects in Indonesia, especially a big green hydrogen project with the expertise that ACWA Power already has from the NEOM Project.”
Last year, ACWA Power announced its collaboration with PLN and Indonesian chemicals company Pupuk Indonesia to develop a green hydrogen project. This project aims to produce 150,000 tonnes of green ammonia annually, with commercial operations scheduled to start in 2026.
Amodi stated that ACWA’s projects in Indonesia will not only attract investments but also create jobs and reduce carbon emissions.
“This will strengthen the relationship between KSA and Indonesia because energy is a very important sector for any nation.”
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