Jakarta: PT PLN (Persero) and Saudi Arabian energy company ACWA Power are developing the Saguling Floating Solar Power Plant (PLTS) project with a capacity of 92 Megawatt peak (MWp) located in West Java.

Both companies have signed a Power Purchase Agreement (PPA).

The Ambassador of Saudi Arabia to the Republic of Indonesia, Faisal Bin Abdullah Al-Amudi, said that this renewable energy development cooperation is a bilateral relationship at the strategic level initiated by the leaders of Indonesia and Saudi Arabia.

He assessed that this collaboration would improve the economy of the two countries.

“The Kingdom of Saudi Arabia, as you know, is the largest economy in the Middle East region and Indonesia is the largest economy in Southeast Asia. Both countries have great potential in terms of investment, on this occasion we also invite investors to be able to increase investment in Saudi Arabia and Indonesia,” Faisal explained in a written statement, Thursday, August 15, 2024.

PLN's strategic steps

PLN President Director Darmawan Prasodjo explained that this strategic step was taken by the company in its efforts to support the increase in the utilization of new renewable energy (EBT) in line with the energy transition agenda in Indonesia.

“The earth is warming up, and we are shifting from fossil fuel-based development to renewable energy-based development. The energy transition policy to renewable energy is underway and will be announced at COP29 in Azerbaijan with 75 percent of additional capacity coming from renewable energy,” Darmawan said.

Darmawan continued, with large investment needs, of course PLN will not be able to do this alone. According to him, this is a global challenge that requires global solutions and global collaboration. The signing of this PPA is proof that the previously fragmented global community is now united.

“Global warming offers great challenges, but it also provides tremendous opportunities, opportunities for growth, opportunities for collaboration, whether in strategy, technological innovation, or joint investment. We want to ensure that future generations have a better future than ours. And it all starts through this extraordinary collaboration,” Darmawan said.

Darmawan said that later when operating the Saguling Floating Solar Power Plant located in the Saguling Reservoir in West Java, it has the potential to reduce carbon emissions by 120 thousand tons per year.

PLN Indonesia Power, a subholding of PT PLN (Persero) will control a 51 percent stake and the rest will be owned by ACWA Power.

“We really appreciate ACWA Power for signing the PPA. This is just the beginning and is a symbol that opens up opportunities for much greater cooperation between Saudi Arabia and Indonesia,” Darmawan continued.

Green energy potential

Meanwhile, ACWA Power Chief Executive Office, Marco Arcelli said that Indonesia is a country with abundant green energy potential. ACWA Power emphasized its readiness to work with PLN to develop green energy in Indonesia.

“In countries with high population density, floating solar PV or 'floatovoltaics' serve as the best solution for utilizing solar energy. Indonesia's vast seascape and abundant sunlight present great potential for this project,” Marco said.

“We look forward to working with our partner, PLN, to contribute to the country's vision of increasing renewable energy capacity,” Marco said.

SOURCE