ACWA Power enters floating solar sector

Saudi developer of power generation projects ACWA Power has signed a deal with Indonesia’s state-owned electricity utility PT Perusahaan Listrik Negara (Persero) to develop two floating solar projects in the world’s largest archipelagic state.

The projects, with a combined capacity of 100MWac and $105 million in investment value, will help Indonesia achieve its renewable energy target of 23% by 2025, under the country’s National General Energy Plan.

This marks ACWA Power’s first foray into the Southeast Asian country, as well as the company’s first floating solar photovoltaic (PV) projects in its portfolio.

Named the Saguling Floating Solar PV and Singkarak Floating Solar PV, the projects will have a capacity of 60MWac and 50MWac respectively.

ACWA Power has a 49% equity stake in both projects, with the rest being held by Indonesia Power, a subsidiary of PT Perusahaan Listrik Negara (Persero) or PLN.

The offtake partner in these projects, PLN, controls, owns, and operates approximately 69% generation capacity in Indonesia.

It is also the sole buyer of electricity produced by independent power plants in the country, including electricity generated from renewable energy sources.

Clive Turton, chief investment officer of ACWA Power, said: “As one of the world’s most populous countries, and a major consumer of conventional energy sources, any steps in Indonesia to mitigate greenhouse gas emissions will make a big impact in the global fight against climate change.

“For companies like ACWA Power, who are intent on the energy transition, this country is an exciting market as there is government support, an understanding of global challenges, considerable demand and an urgent need to supply the country’s numerous residents.

“As we mark our market entry into Indonesia, we are committed to making a positive impact with our partners, offtaker and consumers.”

The Saguling and Singkarak projects are ACWA Power’s second and third projects in the Southeast Asia region, after the Vinh Hao 6 Power Plant, a 50MW project in Vietnam.

As a next step, PLN and ACWA Power said they plan to finalize the power purchase agreements for these projects.

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