Jakarta—PT Indo Acwa Tenaga Saguling, a joint venture between state utility company PT Perusahaan Listrik Negara (PLN) and Saudi Arabian firm ACWA Power, has inked a financing deal with Just Energy Transition Partnership (JETP) to finance the development of the Saguling floating solar power plant project in West Bandung, West Java.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday, April 30, on his Instagram account, that several international agencies agreed to provide USD60 million, or around Rp1 trillion, in funds through JETP to develop the Saguling floating solar power plant project.
These international agencies are DEG of Germany, Proparco of France, and Standard Chartered from the United Kingdom.
“Investment in the Saguling floating solar power plant is not just a solar power plant project. It reflects the collaborative spirit between the Indonesian government, the international community, and the private sector to accelerate the transition to clean energy while encouraging inclusive and sustainable economic growth,” Minister Airlangga said.
He said the power plant has an installed capacity of 92 MWp and is expected to reduce carbon emissions in Indonesia’s electricity system by at least 63,100 tons per year.
In addition, the development of the solar power plant project is also predicted to increase electricity production from solar power in Indonesia by around 13%.
“I also express my appreciation for the trust and support from investors and international financial institutions such as DEG from Germany, PROPARCO from France, and Standard Chartered Bank from England, who have shown their confidence in the potential of renewable energy in Indonesia,” he said.
Furthermore, the French Ambassador to Indonesia, Fabien Penone, who witnessed the investment signing process, also said that France has actively supported the energy transition in Indonesia through JETP.
“The financing carried out by the French development finance institution PROPARCO for the Saguling floating solar power plant shows France’s commitment to developing innovative renewable energy in Indonesia,” Fabien said. (Roffie Kurniawan)
Banner photo: PLN Indonesia Power and PT Indo ACWA Tenaga Saguling signed the Power Purchase Agreement (PPA) for the Saguling Floating Solar Power Plant, Wednesday (21/8/2024). (Source: PLN Indonesia Power Instagram Account)
