Abu Dhabi Future Energy Company (Masdar) has signed strategic agreements to develop new renewable energy projects in Indonesia, supporting the country's energy transition. These agreements underscore the commitment of the United Arab Emirates and Indonesia to advance the renewable energy sector and meet Indonesia's growing energy demand.
Strategic Partnership to Enhance Renewable Energy
The agreements were signed in Bali at the 10th World Water Forum, in the presence of the Indonesian Minister of Energy and Infrastructure, the Special Envoy of the Foreign Affairs Minister of Indonesia, and the UAE Ambassador to Indonesia. Additionally, the Director-General of New and Renewable Energy of Indonesia was also present.
These agreements aim to strengthen the partnership between Masdar and its Indonesian counterparts, including Pertamina Power and PT Nusantara Power, to develop solar PV, wind, and green hydrogen projects.
Role of Renewable Energy in a Sustainable Future
His Excellency Suhail bin Mohammed Al Mazrouei, the UAE's Special Envoy Minister for Energy and Infrastructure, praised the cooperation between the UAE and Indonesia in the field of sustainable energy, emphasizing the importance of clean and renewable energy sources for a sustainable future.
The UAE-Indonesia partnership in renewable energy has made significant strides, contributing to the promotion of a green economy and environmental sustainability. The UAE, a global leader in clean energy investment, has allocated over $5 billion to green projects in Indonesia in recent years.
Mohamed Jameel Al Ramahi, CEO of Masdar, reaffirmed the company's commitment to supporting Indonesia's energy sector development. He emphasized the importance of strategic partnerships in achieving Masdar's goal of promoting clean energy solutions. The planned projects will contribute to Indonesia's sustainable development goals and support the global transition to clean energy.
The Memorandum of Understanding between Masdar and Pertamina Power strengthens the existing partnership and represents a significant step towards enhancing cooperation in renewable energy.
The signing of this memorandum aims to develop new projects and expand the capacity of existing solar energy facilities, thereby enhancing Indonesia's solar energy infrastructure and addressing its growing energy demand.
The agreements between Masdar and PT Nusantara Power represent a significant step towards expanding the production capacity of the "Cirata" project, a leading renewable energy initiative. This collaboration demonstrates both companies' commitment to environmental sustainability and enhancing renewable energy capabilities in Indonesia and the region.
Masdar's investments in Indonesian renewable energy projects align with its broader commitment to promoting a green economy and achieving energy self-sufficiency. By 2030, Masdar aims to achieve ambitious renewable energy goals and develop green hydrogen technology to contribute to global environmental sustainability.
The agreements and investments in the field of sustainable energy between the UAE and Indonesia underscore their shared commitment to promoting sustainable development and environmental preservation. These collaborations strengthen economic and technological ties between the two countries.
CIRATA Project
Image: Collected
The "Cirata" station is a pioneering example of renewable energy innovation. It represents Masdar's first floating solar photovoltaic project and its initial foray into Southeast Asia.
This project involved installing a floating solar photovoltaic system on the 250-hectare Cirata Dam in West Java Province. The plant is expected to power up to 50,000 homes and reduce carbon emissions by approximately 214,000 tons annually.
Additionally, a further 500 MW of capacity will be added during the second phase of development. Recent changes in Indonesian law have increased the allowable surface area for sustainable energy projects to 20%, paving the way for more renewable energy initiatives in the country. These efforts align with Indonesia's commitment to achieving climate neutrality by 2060 and reducing greenhouse gas emissions by 29% (or 41% with international support) by 2030.
Renewable Energy and Sustainability Opportunities in Indonesia
If Indonesia were to significantly increase its adoption of green energy, it could revolutionize its economy and make a substantial positive impact on the environment. According to the International Renewable Energy Agency (IRENA), this transition could potentially save the government over $51.7 billion annually.
Another significant advantage of floating solar power stations is their suitability for countries with limited land availability, such as Indonesia. By harnessing the vast expanse of water bodies, these installations maximize energy production while minimizing land use. The proximity to water also helps to cool the solar panels, improving their efficiency. Additionally, floating solar panels can reduce water evaporation, conserving valuable water resources for drinking and irrigation.