ACWA Power and Indonesia Power to Develop 60MW Solar Plant

The state-owned PT PLN Indonesia Power is collaborating with a Saudi Arabian company to construct a 60-megawatt floating solar power plant on the Saguling Reservoir in West Java in Indonesia.

The project aims to bolster Indonesia’s renewable energy sector, according to the PLN President Director Edwin Nugraha Putra, who said that PT Indo ACWA Tenaga Saguling, a joint venture (JV) between PLN Indonesia Power and ACWA Power, will oversee the construction of the floating power plant.

The venture was formalised with the signing of a power purchase agreement (PPA) by PLN (Persero) President Director Darmawan Prasodjo and PT Indo ACWA Tenaga Saguling President Director Rudolf Rinaldo Aritonang.

Darmawan Prasodjo said that the cooperation is part of the efforts to support increasing renewable energy use in alignment with energy transition in Indonesia. Once operational, the Saguling floating solar panel has the potential to reduce carbon emissions for 120,000 tons per year.

“Energy transition policy to renewable energy is ongoing and will be announced in COP29 in Azerbaijan with 75% of additional capacity from renewable energy,” Darmawan said.

He said that PLN cannot inject huge investment needs by itself as energy transition needs global solution and collaboration. “We want to make sure that the next generation has a better future in comparison with ours and all of this starts with this extraordinary collaboration,” Darmawan said.

Boosting Energy Transition

The project is expected to commence with funding acquisition, followed by construction, with commercial operations targeted for June 2026. The Saguling floating power plant aligns with PLN Indonesia Power’s efforts to accelerate the energy transition and support the government’s net-zero emissions goal by 2060, Putra said.

This corporate action is one of the many efforts made by PLN Indonesia Power to minimize the effect of climate change as well as reduce greenhouse gas emissions. The initiative contributes to mitigating climate change and reducing greenhouse gas emissions, a global challenge requiring international cooperation, Putra said.

Putra emphasised the project’s potential to foster investment and strengthen Indonesia-Saudi Arabia relations.

ACWA Power’s Executive Vice President (EVP) for South and Southeast Asia, Salman M Baray, expressed appreciation for PLN Indonesia Power’s commitment to renewable energy and the company’s transparent collaboration.

“I would like to give my appreciation to PLN Indonesia Power for opening up this cooperation opportunity very professionally and transparently,” he said.
Saudi Arabia Ambassador to Indonesia Faisal bin Abdullah al Amudi said that the cooperation to develop renewable energy is a strategic level bilateral relationship initiated by leaders of Indonesia and Saudi Arabia aimed at increasing the economy of both nations.

“Saudi Arabia, as you know, is the biggest economy in the Middle East and Indonesia is the biggest economy in Southeast Asia. The two countries have huge potentials in investment, at this occasion, we invite investors to increase investment in Saudi Arabia and Indonesia,” the Saudi ambassador said.

ACWA Power CEO Marco Arcelli said that Indonesia has abundant green energy potentials and as world’s biggest private desalinisation company, ACWA Power was ready to collaborate with PLN to develop green energy in Indonesia.

“In countries with high density population, floating solar PV or floatovoltaics is the best solution for solar energy. Indonesia’s vast seascapes and abundant sunlight present great potential for this project. We look forward to working with PLN, to contribute to the country’s vision of increasing renewable energy capacity,” Marco added.