Masdar and PT PJBI, a subsidiary of Indonesia’s state electricity company PT PLN, have formed a joint venture to develop Indonesia’s first floating solar PV project.

The new company, PT. Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), was formally announced at a ceremony at the Cirata reservoir in West Java, where the Cirata Floating Photovoltaic Power Plant will be located.

The ceremony celebrated the progress made this year on the project, which is the largest of its kind in Southeast Asia and one of the largest in the world, and is scheduled to start construction in the first part of 2021.

Upon completion, the Cirata plant, which will be located on a 250-hectare plot on the 6200-hectare reservoir, will power 50,000 homes, offset 214,000 tons of carbon dioxide emissions and contribute to the creation of up to 800 jobs.

The 145MW scheme has been designated a National Strategic Project by the Indonesian government, giving it priority status and recognising its economic and social benefits to the nation.

“The creation of this joint venture company will enable us to continue the exceptional progress we have made on the Cirata plant with our development partner PT PJBI,” said Mohamed Jameel Al Ramahi, CEO of Masdar.

“This project marks our entry into Southeast Asia, where we see tremendous potential, given the region’s rapid economic growth and commitment to sustainable development.

“It also demonstrates the continuing strong relationship enjoyed between the United Arab Emirates and Indonesia, and will support the transfer and exchange of knowledge between our two countries. Masdar looks forward to extend its successful collaboration and strategic partnership with PJBI and PLN to expand its presence and investments in Indonesia.”

Gunawan Yudi H, president director of PJBI, said the development of the project “is a big step for PJBI to develop a business and partnership as an electricity producer in Indonesia”.

Indonesia, the world’s largest archipelago, is targeting 23% of its energy mix coming from renewables by 2025 under its Electricity Infrastructure Acceleration Programme. The government is currently considering plans to develop an additional 60 floating PV plants, capitalizing on its more than 600 lakes and reservoirs, and helping to preserve precious land resources.