The state-owned power provider in Indonesia, PT Perusahaan Listrik Negara (PLN), and ACWA Power have signed a memorandum of understanding. The deal covers green hydrogen development in Indonesia as well as the development of battery storage for renewable energy installations.
The MoU was signed in Bali during the B20/G20 Summit, which also happened to be the same time that Mohammed Bin Salman Al Saud, Saudi Arabia’s Crown Prince and Prime Minister, paid a state visit to Indonesia. Darmawan Prasodjo, CEO of PLN, and Paddy Padmanathan, vice chairman and CEO of ACWA Power, both signed. Pahala N. Mansury, vice minister of Indonesia’s ministry of state-owned enterprises, Dadan Kusdiana, commissioner of PLN and director general of electricity, and Mohammad R.S. Iwan Ungsi, director of the Indonesia Investment Promotion Center in Abu Dhabi, United Arab Emirates, all witnessed the signing of the contract.
A project study for pump storage for a 600–800 MW hydroelectricity facility, an investigation into the viability of a 4 GW battery energy storage system, and the development of an environmentally friendly hydrogen/ammonia facility that is powered by hydroelectricity are all covered by the terms of the MoU.
The deal includes a specific capacity-building mandate for PLN’s personnel and lays out a clear pipeline of renewable energy and technology growth for ACWA Power within the nation.
Indonesia is focused on improving sustainable development through strategic partnerships as a country with fast-paced economic expansion. We are happy to expand our partnership and bolster our footprint in the nation with the signing of this substantial MoU on renewable energy and green hydrogen with PLN. According to Paddy Padmanathan, CEO and Vice Chairman of ACWA Power, “We look forward to working with the government to ensure that its renewable energy targets are realized.
According to Indonesia’s National General Energy Plan, 23% of the nation’s electricity will come from renewable sources by 2025. PLN is the sole consumer of electricity generated by independent power projects, including electricity generated by renewable energy projects, in the Republic. As of the previous year, the company owned or ran almost two-thirds of Indonesia’s power-producing sector or roughly 65.5GW of electricity.
Dealing with climate change is a business opportunity as well as a task to protect the environment. Future PLN initiatives for the energy transition will be numerous and call for cooperation from all parties. A highly solid, lasting, and fruitful collaboration has been established between ACWA Power and PLN, said Darmawan Prasodjo, President Director, and CEO of PLN.
“An MoU signed in October 2022 established PLN’s partnership with ACWA Power for the development of floating solar power plants in Singkarak and Saguling. With a wider commitment to investigating the potential for collaborative company expansion, not just domestically but also internationally, PLN and ACWA added yet another collaboration today. The development of renewable energy projects and technology advances in solar PV, wind, hydro, pump storage, battery peaker, battery storage, tidal, and geothermal power are being investigated by PLN and ACWA. In reality, he continued, “We will collaborate to construct green hydrogen and green ammonia factories.
Due to PLN awarding the business two contracts to build floating solar photovoltaic projects in October 2022, ACWA Power entered Indonesia this year.
