PT Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), a joint venture between Masdar and PT PJBI, has reached financial closure for the Cirata floating photovoltaic power plant in Indonesia.
PMSE has begun construction works on the 145MWac project, which is due to begin commercial operations in the fourth quarter of next year.
PMSE secured financing from Sumitomo Mitsui Banking Corporation, Societe Generale and Standard Chartered Bank for the project.
Located on the Cirata reservoir in the West Java province, the floating solar plant will generate enough clean energy to power 50,000 homes while offsetting 214,000t of carbon emissions.
The project is expected to create almost 800 jobs and will be Indonesia’s first floating solar power plant once operational, as well as one of the largest in the world.
Masdar CEO Mohamed Jameel Al Ramahi said: “This achievement would not have been possible without the constant support of the Government of Indonesia, our lenders and our strategic partnership with PJBI and PT PLN, who have been with us [at] every step of our journey.
“The designation of this project as a National Strategic Project (PSN) has been invaluable in enabling us to make such significant progress and demonstrates that the government recognises the economic and social benefits the Cirata project will bring to the local community and to all of Indonesia.”
PJBI president director Amir Faisal said: “This floating power project is a first for Indonesia and is also a significant step in PJBI’s renewable energy journey.
“We see tremendous potential for similar projects in Indonesia and we look forward to continuing our fruitful collaboration with Masdar to work on more renewable energy projects and help our nation achieve its clean energy objectives.”
PT PJBI is a subsidiary of Indonesian state-owned electricity company PT PLN while Masdar is a UAE-based renewable energy company.