Masdar, PLN to develop first floating solar plant in Indonesia

Masdar, one of the world’s leading renewable energy companies, signed a power purchase agreement, PPA, with Perusahaan Listrik Negara, PLN, the state electricity company in Indonesia, for the first floating solar photovoltaic, PV, plant in the country.

Dr. Sultan bin Ahmad Al Jaber, UAE Minister of State and Chairman of Masdar, and Zulkifli Zaini, President Director, PLN, formally exchanged documents relating to the agreement during a ceremony at the Presidential Palace in Abu Dhabi on Sunday.

His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Joko Widodo, President of Indonesia, were present at the ceremony.

The 145-megawatt PV plant, which will also be Masdar’s first floating solar PV project, will be built on a 225-hectare plot of the 6200-hectare Cirata Reservoir, in the West Java region.

Masdar is developing the plant with PT Pembangkitan Jawa-Bali, a subsidiary of PLN.

Dr. Al Jaber said, “This agreement between Masdar and PLN marks a significant milestone in Indonesia’s sustainable energy journey. Leveraging innovative solutions such as this floating solar PV project will be critical to the nation achieving its renewable targets and to support its sustainable growth. Masdar will continue to support the development of renewable energy solutions in the Southeast Asia market, where we see tremendous potential, given the region’s rapid economic growth.” The project is Masdar’s first venture into the Southeast Asian market, and builds on the UAE’s strong relationship with Indonesia.

“The Cirata floating PV project is a monumental renewable energy project for Indonesia, and the biggest floating PV in South East Asia. It will improve the capability of the Jawa-Bali power system and also increase the renewable energy mix in Indonesia,” said Zaini, adding, “The potential of similar projects is endless and we anticipate construction should begin soon, aiming for commercial operation in 2022.” Indonesia is the largest energy user in the ASEAN region and the country is targeting 23 per cent of its energy mix coming from renewables by 2025, rising to 31 per cent by 2030.

Masdar is a subsidiary of Abu Dhabi’s Mubadala Investment Company and one of the world’s leading international renewable energy development and investment companies.

Energy and climate change is one of the key pillars at the Abu Dhabi Sustainability Week, taking place this week in the UAE capital.

Meanwhile, Masdar, a subsidiary of Mubadala Investment Company and one of the world’s leading renewable energy and sustainable real estate companies, has announced the launch of a sustainable real estate investment trust, REIT - the first ‘green’ REIT to be introduced in the UAE.

The REIT was launched at Abu Dhabi Sustainability Week, ADSW, by Ahmed Ali Al Sayegh, Minister of State and Chairman of Abu Dhabi Global Market, ADGM, Khaled Al Qubaisi, Chief Executive Officer of Aerospace, Renewables & ICT at Mubadala Investment Company, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. The REIT will have an initial valuation of between AED950 million (US$258.7 million) and AED1 billion.

The REIT will be established at ADGM, the award-winning International Financial Centre offering the first private REIT regime in the Mena region as part of its thriving business ecosystem.

It will initially include four commercial properties within Masdar City, the sustainable urban community in Abu Dhabi that is focused on low-carbon urban development. The private REIT will be launched as a Qualified Investor Fund, open to market counterparties and select clients by private placement. The properties cover a net leasable area of 57,493 sqm, and they have all achieved a rating of 3 Pearls or above on Abu Dhabi’s Estidama Pearl Building Rating System.

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said at ADSW, “This REIT is a significant milestone for green investment in the region, and demonstrates Masdar’s leadership in sustainable development. This is the first venture of its kind here, and offers investors an attractive option to invest in sustainable income-generating real-estate assets that are helping to contribute to a greater future for all. Investors are increasingly looking for ‘responsible investments’ and are evaluating companies based on specific environmental, social and governance practices criteria. The REIT will contribute to the development and strength of Abu Dhabi’s real-estate sector and bring in greater investment from domestic and international investors that want to make a real difference.” The ‘green’ REIT also marks great progress in bringing the Abu Dhabi Sustainable Finance Declaration to life, which was signed last year by 25 public and private sector entities, including Masdar and ADGM, and is aimed at establishing a healthy and sustainable finance industry that supports the UAE in attaining the United Nations Sustainable Development Goals.

WAM