RIYADH: Saudi-listed ACWA Power has signed a power purchase agreement with Indonesia’s state-owned PT Perusahaan Listrik Negara for its inaugural floating solar photovoltaic project in the country.
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.
PLN will act as the offtake partner for this venture, which supports Indonesia’s renewable energy targets, according to a press release.
This follows ACWA Power’s selection by PLN to develop two floating solar PV projects, including the Saguling and Singkarak Floating Solar PV Projects, announced in late 2022.
Together, these projects represent a combined investment of $105 million and are key to Indonesia’s National General Energy Plan, which aims for a 23 percent renewable energy share by 2025.
Thomas Brostrom, chief investment officer, ACWA Power, said: “We’re thrilled to announce our PPA agreement for the Saguling floating solar project. This project is the first for ACWA Power in Indonesia and paves the way for the growth potential we see. This signing is a significant development in achieving our sustainability goals, aligning with our aim to lead in responsible investment.”
In addition to these projects, ACWA Power is also collaborating with PLN on Indonesia’s largest green hydrogen facility, the Garuda Hidrogen Hijau Project, further enhancing its footprint in the region’s renewable energy landscape.
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 earnings rise to higher gross profit driven by increased revenues, an elevated profit share from equity-accounted investees, and increased finance 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 $1.90 billion in capital to triple its assets under management by 2030, supporting its growth and financial stability.
