Abu Dhabi Future Energy Company, known as Masdar, has signed two agreements with PT PLN (Persero), Indonesia’s state-owned electricity company, to advance floating solar energy development in Indonesia.

The first agreement focuses on developing a floating solar power plant at the Jatigede Dam in West Java, with construction set to begin this year and completion expected by 2027.

The second agreement explores expanding the Cirata Floating Photovoltaic Power Plant, which began operations in November 2023 and generates enough electricity to power 50,000 homes annually.

These initiatives support Indonesia’s goal of achieving net-zero emissions by 2050 and installing 75GW of renewable energy capacity within 15 years.

Masdar and PLN have been strengthening their collaboration in renewable energy, with Masdar aiming for a 100GW clean energy capacity by 2030.

🔗 Source: Masdar

🧠 Food for thought

1️⃣ Indonesia’s floating solar potential offers a strategic solution to its challenging energy transition

Indonesia’s unique geography of 17,000+ islands and 600+ natural lakes and reservoirs provides ideal conditions for floating solar development, addressing a critical barrier to renewable adoption 1.

Despite having enormous renewable energy potential of 3,700 GW across all sources, Indonesia has struggled with land constraints for traditional solar installations, making floating solar particularly advantageous 2.

The Cirata project demonstrates floating solar’s multiple benefits beyond power generation, such as reducing evaporation from reservoirs and limiting algae growth while utilizing existing grid infrastructure from hydroelectric facilities 3.

This approach helps Indonesia address its consistent underperformance in renewable energy targets, having reached only 14% renewable generation versus its original 23% target for 2025 4.

Floating solar technology represents a practical solution in a country where coal still dominates 60-67% of electricity generation despite ambitious climate commitments to phase out fossil fuels by 2040 2.

2️⃣ Strategic international partnerships becoming essential for emerging markets’ energy transitions

The UAE-Indonesia collaboration exemplifies how cross-regional partnerships can accelerate renewable energy deployment by combining Masdar’s technical expertise with Indonesia’s natural resources 5.

Indonesia established a new strategic investment management agency (Danantara Indonesia) in February 2025 specifically designed to enhance global competitiveness of key state enterprises like PLN, signaling increased focus on international partnerships.