ACWA to develop, co-own 110 MW of floating solar projects in Indonesia

Saudi investor in water and power plants ACWA Power (TADAWUL:2082) today said it will develop and co-own 110 MW of floating solar parks in Indonesia through a deal with state-owned utility PT Perusahaan Listrik Negara, or PLN.

The contract, which marks ACWA Power’s entry into the Indonesian market, will see the Saudi company develop two photovoltaic (PV) schemes on behalf of its partner. Additionally, it will own a 49% stake in each of them, while the rest will be held by PLN’s subsidiary Indonesia Power.

The 60-MW Saguling and 50-MW Singkarak projects will require a combined investment of USD 105 million (EUR 105.8m).

Once in operation, the floating solar farms will be operated through a power purchase agreement (PPA) with PLN, which will be the sole power off-taker. The PPAs are due to be finalised as a next step in the partnership, ACWA Power said.

The development of the two schemes will support Indonesia’s goal to raise the portion of renewables in its energy mix to 23% by 2025.

Separately, ACWA Power signed a Memorandum of Understanding (MOU) to finance sustainable infrastructure projects with the European Bank for Reconstruction and Development (EBRD) over the next five years. The pact covers investment in renewable energy, green hydrogen, green desalination projects, mostly in Uzbekistan, Azerbaijan and Egypt.

(USD 1.0 = EUR 1.008)

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