Saudi energy firm ACWA Power expands portfolio in Indonesia
Saudi energy firm ACWA Power will work with Indonesia’s stateowned electricity provider to develop battery storage for renewable energy facilities and green hydrogen development in the Asian country.
The firm has announced it signed a memorandum of understanding with PT Perusahaan Listrik Negara — known as PLN — at the B20/G20 Summit in Bali and coincided with the state visit of the Kingdom’s Crown Prince Mohammed Bin Salman to Indonesia.
According to the terms of the MoU, ACWA Power and PLN will jointly investigate several avenues of partnership, including 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.
Paddy Padmanathan, CEO and vice chairman of ACWA Power, said: “As a nation that is fast tracking economic growth, Indonesia is focussed on advancing sustainable development through strategic partnerships.
“With the signing of this extensive renewable energy and green
hydrogen MoU with PT Perusahaan Listrik Negara, we are delighted to extend our collaboration and strengthen our presence in the country.
“We look forward to partnering with the government in ensuring that its renewable energy goals are realized.”
Indonesia’s National General Energy Plan states that 23 percent of the country’s power should be generated via renewable energy sources by 2025.
PLN is Indonesia’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.”
The agreement comes after ACWA Power and Indonesian energy firm Pertamina New & Renewable Energy signed a joint development agreement on core utilities supplies to Tuban Grass Root Refinery and Petrochemical Project in Java, eastern Indonesia. This agreement was also signed on the sidelines of the G20 summit.