Abu Dhabi-based clean energy giant Masdar has announced a new collaboration with Indonesia’s PT PLN Nusantara Power (PLN NP) to explore investment opportunities in solar and wind energy projects across Central Asia, Europe, and the Middle East.
The agreement, which builds on an already successful partnership, was signed during an official visit to Uzbekistan at Masdar’s Tashkent office.
The deal aims to expand Masdar’s global renewable energy footprint, focusing on key regions that are vital for the global energy transition.
Both companies see this collaboration as an important step in contributing to energy security and environmental sustainability, particularly in markets where clean energy infrastructure is still in its early stages.
The partnership builds on the success of the 145 MW Cirata floating solar PV plant, the largest floating solar power facility in Southeast Asia, which was developed by Masdar and PLN NP in 2017.
The Cirata plant, located on the Cirata reservoir in West Java, Indonesia, has been a flagship project in the region’s renewable energy push, and both companies are optimistic about replicating this success in new markets.
Indonesia has become a key market for Masdar as it continues to expand its renewable energy portfolio in Southeast Asia.
The country has pledged to reach net-zero emissions by 2060 or earlier and is working to reduce greenhouse gas (GHG) emissions by 29% by 2030, with the potential to increase this target to 41% with international support. Indonesia’s plans align with Masdar’s focus on expanding clean energy capacity across the globe.
In 2023, Masdar announced plans to expand the Cirata floating solar plant from 145 MW to as much as 500 MW in collaboration with PLN NP, demonstrating their commitment to large-scale renewable energy projects in the region.
Recent regulatory changes by Indonesia’s Ministry of Public Works and Housing, allowing up to 20% of water coverage for renewable energy use, have opened up new opportunities for further expansion of the Cirata project.
According to the International Renewable Energy Agency (IRENA), scaling up renewable energy could save Indonesia as much as $51.7 billion annually when factoring in the benefits of reduced air pollution and climate change mitigation.
Indonesia is the largest energy consumer in the ASEAN region, and its transition to renewables is crucial for both domestic and regional environmental goals.
PLN Nusantara Power (PLN NP) has emerged as a key player in Indonesia’s renewable energy sector. In 2023, the company recorded electricity production of 66.8 million megawatt hours (MWh), a major increase of 291% compared to 2022, following optimization efforts at its plants.
PLN NP is part of the larger PLN Group, which is heavily involved in Indonesia’s transition to renewable energy. PLN Nusantara Renewables (NR), a leading subsidiary of PLN Group, has been instrumental in developing a new ecosystem for renewable energy.
The subsidiary operates with a high degree of flexibility, focusing on independent power producers (IPPs), and has developed projects totaling 3,210 MW, with 2,145 MW currently operational, 895 MW under construction, and 170 MW in the development phase.
PLN NR has also established eight companies, including PT Pembangkitan Jawa Bali Solar Energi (PMSE) for the Cirata floating solar power plant, and PT Nusantara Sembcorp Solar Energi (NSSE) for the 50 MW solar power plant in Indonesia’s new capital city. These initiatives reflect PLN NP’s expanding influence in Indonesia’s renewable energy landscape.
Recently, PLN NP, in collaboration with PLN Energi Primer Indonesia (PLN EPI), launched partnerships with three regional governments in Indonesia to use land for growing biomass crops, which will be used in coal-fired power plants. This initiative is aimed at improving environmental quality and supporting local communities through the cultivation of multifunctional plants.
