DNV’s technical expertise backs Indonesia’s 145MW floating solar plant
Independent energy expert and assurance provider DNV has acted as the technical advisor during the development phase of Indonesia’s first-ever floating solar project at Cirata Reservoir in West Java.
DNV supported the first phase of the Cirata floating solar photovoltaic (PV) project, which began in April 2020 and involved pre-construction due diligence.
The role of DNV included undertaking site studies, estimating solar resource data and energy yield and reviewing the financial model’s technical assumptions.
DNV also reviewed the project design, technology, PPA, Engineering, Procurement and Construction (EPC) contract and contractor, the Operation and Maintenance (O&M) contract, plan and operator.
In addition to conducting a technical due diligence, DNV also evaluated the environmental and social impact assessments to ensure compliance with internal best practices and International Finance Corporation (IFC) standards.
The project owner, PT Pembangkitan Jawa Bali Masdar Solar Energi (PMSE), is a joint venture between the Abu Dhabi-based Masdar and Indonesian state-owned electricity company Perusahaan Listrik Negara (PLN) subsidiary PJBI.
PMSE achieved financial close for the project on the 3 August 2021, after the satisfactory completion of the lender’s due diligence review.
The senior debt of the floating solar project is being provided by Sumitomo Mitsui Banking Corporation, Societe Generale, and Standard Chartered Bank.
Brice Le Gallo, regional director for energy systems Asia Pacific at DNV, said: “DNV is delighted to be supporting PMSE in developing Indonesia’s first floating solar PV project which is expected to pioneer significant uptake in the technology as the country shifts to low-carbon power generation solutions.
“Executing this complex project required a seamless collaboration across DNV’s resource pool of experts, from solar and power grids advisory to marine engineering”.
Przemek Lupa, president director of PMSE, added: ”DNV’s experience in advising sponsors and lenders on floating PV, which is a relatively new technology, was a key differentiator and was instrumental in its selection as the lender’s technical advisor for the Cirata floating PV project”.
In recognition of the significant economic, social and environmental benefits that it will bring, the Cirata floating PV project has been designated a National Strategic Project by the Indonesian government, giving it priority status.
The project is scheduled to begin commercial operations in the fourth quarter of 2022, powering 50,000 homes and displacing 214,000 tonnes of CO2 per year.
Under Indonesia’s Electricity Infrastructure Acceleration Program, the government is aiming to supply 23% of the nation’s electricity needs from renewable energy by 2025. The plan will involve the construction of up to 60 floating solar plants in Indonesia
In addition to advising on 800MW of installed floating PV capacity in Asia Pacific, including Singapore’s Tengeh reservoir project, DNV has been involved in a combined 2GW of floating PV projects worldwide.
In terms of industry-shaping technical expertise, DNV led the collaborative joint industry project (JIP) involving 24 industry participants which produced a set of recommended practices for accelerating safe, sustainable and sound design, development and operations of floating solar PV projects in March 2021.