The MoU was signed at the B20/G20 Summit in Bali and coincided with the state visit of HRH Mohammed Bin Salman Al Saud, Crown Prince and Prime Minister, Saudi Arabia, to Indonesia.
According to the terms, ACWA Power and PLN will jointly investigate several avenues of partnership which include a project study for pump storage for a 600-800MW hydroelectricity facility; investigating the possibility of a 4GW battery energy storage system; and the development of a green hydrogen/ammonia facility that is powered by hydroelectricity.
The agreement lays out a clear pipeline of renewable energy and technological development for ACWA Power within the country and involves a clear capacity building mandate for PLN’s employees.
Paddy Padmanathan, CEO and Vice Chairman, said as a nation that is fast tracking economic growth, Indonesia is focussed on advancing sustainable development through strategic partnerships.
He said, “With the signing of this extensive renewable energy and green hydrogen MoU with PT Perusahaan Listrik Negara (PLN), we are delighted to extend our collaboration and strengthen our presence in the country.”
Indonesia’s National General Energy Plan states that 23% of the country’s power should be generated via renewable energy sources by 2025.
PLN is the Republic’s sole buyer of electricity produced by independent power projects, including power produced from renewable energy projects. As of last year, the enterprise owns or operates nearly two-thirds of Indonesia’s power generation industry, which is approximately 65.5GW of electricity.
Darmawan Prasodjo, President Director and CEO of PLN, said dealing with climate change is not only a challenge to preserve the environment, but also a business opportunity.
He said, “In the future, there will be many PLN agendas in the energy transition that require the collaboration of all parties.”
PLN’s collaboration with ACWA Power had previously been established in the construction of floating solar power plants in Singkarak and Saguling through an MoU signed in October, he added.
The MoU builds on ACWA Power’s interests in Indonesia, after PLN awarded the company two contracts to develop floating solar photovoltaic plants in October.