PLTS Floating Cirata Officially Receives Funds From Sumitomo, Societe Generale And Standard Chartered

Illustration. (Photo: Doc. Antara)

JAKARTA - The Cirata Floating Solar Power Plant (PLTS) project, which is the largest power plant in Southeast Asia with a capacity of 145 megawatts (MWac) has reached the financial close stage. The funding comes from three international banking institutions.

President Director of PT PLN (Persero) Zulkifli Zaini said that three international banks were investors for the Cirata Floating PLTS project, namely Sumitomo Mitsui Banking Corporation (SMBC), Societe Generale and Standard Chartered Bank.

Furthermore, Zulkifli said that the achievement of the financial close stage was the result of the full support of PLN as the buyer of PLTS Cirata electricity and PT PJB (Java Bali Generation), as the parent of PT PJB Investasi (PJBI) and the Java Bali Masdar Solar Energy Generation (PT PMSE).

Later, the Cirata Floating PLTS will be managed by PT Pembangkitan Jawa Bali Masdar Solar Energi (PMSE) which is a joint venture between PT Pembangkitan Jawa Bali Investasi (PJBI) with a 51 percent stake and a 49 percent shareholding company from UAE Masdar.

"Thank God, this project has reached the financial close stage. This is an important stage which indicates the need for project funding to receive support from international banks," he said during the 'Financial Close Declaration of PLTS Apung Cirata', Tuesday, August 3.

Zulkifli said that with funding support obtained, the construction phase would be able to continue. Construction progress has started since May 17 and is currently in the detailed engineering design stage. The Cirata Floating PLTS is targeted to operate commercially in November 2022.

"We hope that the development of PLTS will trigger the development of EBT, especially PLTS with competitive rates, as part of PLN's efforts to provide clean, reliable, and economically viable energy," he explained.

Meanwhile, PJBI President Director Amir Faisal said the estimated investment requirement per one MWAc is US$ 1 million. This means that the total investment required is around 145 million dollars or equivalent to Rp. 2.1 trillion (assuming an exchange rate of Rp. 14,500 per dollar).

"Of the investment 80 percent are by foreign lenders and 20 percent by ourselves (equity consisting of PJBI and Masdar)," said Amir.

On the same occasion, Deputy Minister of State-Owned Enterprises (BUMN) Pahala Nugraha Mansury said, as a national strategic project, the Cirata Floating PLTS is expected to be a pilot for the development of EBT plants in other areas. So that Indonesia can achieve the target of the NRE mix of 23 percent in 2025, and support efforts to reduce emissions significantly.

In addition to international cooperation, the PLTS Terapung Cirata is a joint venture between the Indonesian BUMN, PLN, and the United Arab Emirates state-owned company, Masdar.

"Hopefully this project can become a foundation in strengthening cooperation between the two countries. Besides being expected to provide benefits to the surrounding community by creating jobs and lifting the regional economy," he said.

"The Cirata Floating PLTS is expected to be a lesson, technology transfer in the development of renewable energy, from one of the global leaders of renewable energy plants from the United Arab Emirates," he continued.

For your information, the Cirata Floating PLTS was built on the Cirata Reservoir covering an area of 250 hectares or three percent of the total surface area of the reservoir. The electricity purchase contract or purchase power agreement (PPA) scheme with a build, own, operate transfer (BOOT) scheme for 25 years.