ACWA Power has signed a power purchase agreement with Indonesian state-owned company PT Perusahaan Listrik Negara for its inaugural floating solar PV project in the country.

The Saguling floating solar PV project, with a capacity of 60 megawatts, is being developed, in which ACWA Power owns a 49 percent stake, while the remainder is owned by Indonesia Power, a subsidiary of PLN.

PLN will act as a purchasing partner for this company, which supports Indonesia’s renewable energy goals, according to a press release.

This follows PLN’s selection of ACWA Power to develop two floating solar PV projects, including the Saguling and Singkarak floating solar PV projects, announced in late 2022.

#ACWAPower’s first floating solar PV initiative!

Our power purchase agreement (PPA) with PT Perusahaan Listrik Negara (PLN) for the Saguling project highlights our commitment to creating a #sustainablefuture.#Innovation #Leadership #RenewableEnergy

– ACWA Power (@acwapower_en) August 14, 2024

Together, these projects represent a combined investment of $105 million and are key to Indonesia’s National Energy Master Plan, which targets a 23 percent share of renewable energy by 2025.

Thomas Brostrom, chief investment officer at ACWA Power, said: “We are delighted to announce our PPA agreement for the Saguling floating solar project. This project is ACWA Power’s first in Indonesia and paves the way for the growth potential we see. “This signing is an important step forward in achieving our sustainability objectives, aligning with our objective of leading responsible investment.”

In addition to these projects, ACWA Power is also collaborating with PLN on Indonesia’s largest green hydrogen facility, the Garuda Hydrogen Hijau Project, further enhancing its footprint in the region’s renewable energy landscape.

The Saguling Floating Solar PV Project, with a capacity of 60 megawatts, is being developed with ACWA Power holding a 49 percent equity stake, while the remainder is owned by Indonesia Power, a PLN subsidiary. Supplied

ACWA Power’s portfolio includes 90 projects in operation, development or construction, with a total investment of $94.3 billion. These projects have a combined capacity of 65.6 gigawatts of power generation and can produce 8 million cubic meters of desalinated water per day.

Earlier this month, ACWA Power reported a 35.46 percent increase in net profit for the first half of 2024, reaching $246.88 million, compared to the same period last year.

The company attributed the profit increase to higher gross profit driven by higher revenues, a high proportion of equity-accounted earnings from investee companies and higher financial income.

The Public Investment Fund-backed firm continues to focus on leading Saudi Arabia’s energy transition while expanding globally, targeting high-growth economies. The company plans to raise $1.9 billion in capital to triple its assets under management by 2030, supporting its growth and financial stability.