JAKARTA (TheInsiderStories) – PT Pembangkitan Jawa Bali (PJB), a subsidiary of state-owned electricity company PLN, has signed an agreement with Masdar, an energy company from the United Arab Emirates (UAE), to develop Indonesia’s first Floating Photovoltaic Solar Power Plant, to be sited on Cirata Dam, West Java, with installed capacity of 200 MW.
The estimated investment for the project is expected to reach $180 million or around Rp2.4 trillion. The Cooperation Agreement was signed on Tuesday (28/11) at the Energy and Mineral Resources Ministry office, witnessed by Deputy Energy Minister Arcandra Tahar.
Following the agreement, the two parties will set up a joint venture company, in which PJB will hold 51 per cent with the remaining 49 per cent held by Masdar.
Arcandra Tahar has called on investors to utilize local components where possible, and rely less on imported components.
The tariff is yet to be determined; however, Arcandra Tahar said the government is looking for a purchase tariff of US$6.5 cent/kWh.
The project is part of the government’s drive to increase the use of renewable energy in the country’s energy mix to 23 per cent by 2025.
The signing of the agreement was a follow-up to a Memorandum of Understanding (MoU) between PJB and Masdar on July 16, 2017, concluded in Abu Dhabi, on the Development of Renewable Large Scale Power Projects in Indonesia.
PJB expects the power purchase agreement (PPA) with PLN will be signed by the end of this year. In the first phase, the JV firm will develop 50 MW of installed capacity, with commercial operation date target set for the second quarter of 2019. Meanwhile, the second, third and fourth phases will have an installed capacity of 150 MW, and will come on line in the first quarter of 2020.
President Director of PLN Sofyan Basir said that in the past two years, PLN has developed 2000 MW of solar power, with a combined investment of Rp20 trillion.
Masdar CEO Mohammed al-Ramah described the agreement as ‘major milestone’ of business relations between the two companies, starting with the largest solar farm in Indonesia. (*)