JAKARTA: Indonesia is seeking to boost its clean energy sector through closer cooperation with Saudi Arabia, its state power firm said on Thursday after signing a deal with the Kingdom’s energy giant, ACWA Power.
Indonesia’s Perusahaan Listrik Negara signed a power purchase agreement with ACWA Power on Tuesday to develop the Saguling Floating Solar Photovoltaic Project in West Java province.
This project will have with a 92 megawatt peak capacity, marking the Saudi Arabia company’s first such venture in Southeast Asia’s biggest economy.
PLN’s subsidiary Indonesia Power will hold a 51 percent equity stake in the project, while the remainder will be owned by ACWA Power, PLN said in a statement on Thursday, adding that the collaboration will help expand Indonesia’s clean energy reach.
“Global warming is a huge challenge, but it also offers us extraordinary opportunities for development and collaboration, whether through strategies, technology innovation, or investments.
“We want to make sure that the future generation will have a better future than our own, and everything begins with this extraordinary collaboration,” PLN President Director Darmawan Prasodjo said.
“We truly appreciate ACWA Power for the signing of this PPA agreement. This is just the beginning and it is symbolic of even bigger opportunities for cooperation between Saudi Arabia and Indonesia.”
Renewables accounted for around 13 percent of Indonesia’s energy mix last year, with the majority of its power needs met by coal and oil.
One of the world’s biggest greenhouse gas emitters, the country of 270 million people has pledged to achieve a 23 percent share of renewable power in its energy mix by 2025.
That target will get a boost through another planned cooperation with ACWA Power to develop a 77 megawatt peak floating solar photovoltaic project in Singkarak, West Sumatra province. Combined, both projects are worth around $105 million.
“This is the start of many more renewable energy investments from the Kingdom of Saudi Arabia in Indonesia,” Saudi Ambassador to Indonesia Faisal Abdullah Amodi told Arab News.
“ACWA Power is committed to do mega-sized projects in Indonesia, especially a big green hydrogen project with the expertise that ACWA Power already has from the NEOM Project.”
Last year, ACWA Power announced it was collaborating with PLN and Indonesian chemicals company Pupuk Indonesia to develop a green hydrogen project that would produce 150,000 tonnes of green ammonia annually, with plans for commercial operations to start in 2026.
ACWA’s projects in Indonesia would not only bring investments into the country, but also create jobs and reduce carbon emissions, Amodi said.
“This will strengthen the relationship between KSA and Indonesia because energy is a very important sector for any nation.”
