PLN Partners with Saudi Arabian Company to Develop Saguling Floating Solar Power Plant

PT PLN (Persero) signed a Power Purchase Agreement (PPA) with a Saudi Arabian energy company, ACWA Power to develop the Saguling Floating Solar Power Plant (PLTS) project with a capacity of 92 Megawatt peak (MWp) in West Java.

The Saudi Arabian Ambassador to Indonesia, Faisal Bin Abdullah Al-Amudi, said that this EBT development cooperation is a bilateral relationship at a strategic level initiated by the leaders of Indonesia and Saudi Arabia. He assessed that this collaboration would improve the economies of both countries.

“The Kingdom of Saudi Arabia, as you know, is the largest economy in the Middle East and Indonesia is the largest economy in Southeast Asia. Both countries have great potential in terms of investment, on this occasion we also invite investors to increase investment in Saudi Arabia and Indonesia,” explained Faisal, in his statement, Thursday (15/8/2024).

PLN President Director Darmawan Prasodjo explained that this strategic step was taken by the company in its efforts to support increased utilization of new renewable energy (EBT) in line with the energy transition agenda in Indonesia.

“The earth is warming, and we are shifting from fossil fuel-based development to renewable energy-based development. The energy transition policy to renewable energy is underway and will be announced at COP29 in Azerbaijan with 75% of additional capacity coming from renewable energy,” said Darmawan.

Darmawan also said that with the large investment needs, of course PLN would not be able to do it alone. According to him, this is a global challenge that requires global solutions and global collaboration.

He said that the signing of this PPA is proof that the previously fragmented global community is now united.

“Global warming offers great challenges, but also provides extraordinary opportunities, opportunities to grow, opportunities to collaborate, both in strategy, technological innovation, and joint investment. We want to ensure that future generations have a better future than our generation. And it all starts through this extraordinary collaboration,” said Darmawan.

Darmawan said that later when the Saguling Floating PLTS, located in the Saguling Reservoir in West Java, operates, it has the potential to reduce carbon emissions by 120 thousand tons per year.

In this project, PLN Indonesia Power as a subholding of PT PLN (Persero) controls 51% of the shares and the rest will be owned by ACWA Power.

“We greatly appreciate ACWA Power for signing the PPA. This is just the beginning and is a symbol that opens up opportunities for much greater cooperation between Saudi Arabia and Indonesia,” continued Darmawan.

Meanwhile, Chief Executive Office of ACWA Power, Marco Arcelli said that Indonesia is a country with abundant green energy potential. As the largest private water desalination company in the world, ACWA Power emphasized its readiness to work with PLN to develop green energy in Indonesia.

“In countries with high population density, floating solar PV or ‘floatovoltaics’ serve as the best solution to utilize solar energy. Indonesia’s vast seascape and abundant sunlight present great potential for this project. We look forward to working with our partner, PLN, to contribute to the country’s vision of increasing renewable energy capacity,” explained Marco. ACWA Power is expanding its presence in Indonesia through strategic investments that contribute to economic growth and realize a sustainable future.

August 15, 2024, detikFinance

(https://finance.detik.com/energi/d-7491670/pln-gandeng-perusahaan-arab-saudi-kembangkan-plts-terapung-saguling)