PLN to Develop Clean Energy with Saudi Arabia's ACWA Power

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Laila Afifa

18 November 2022 10:23 WIB

TEMPO.CO, Jakarta - PT PLN (Persero) is putting its best effort to develop new renewable energy (NRE) to reduce emissions, one of which is by collaborating with ACWA Power, an energy company from Saudi Arabia. 

PLN's collaboration with ACWA Power is established in a memorandum of Understanding (MoU) signed by PLN President Director Darmawan Prasodjo and Vice Chairman and Chief Executive Officer ACWA Power, Padmannathan, witnessed by Deputy Minister of SOEs I Pahala Nugraha Mansury, and Director General of Electricity Dadan Kusdiana in the G20 Summit series in Nusa Dua Bali, Monday 14 November. 

Deputy Minister I of State-Owned Enterprises (BUMN) Pahala Mansury said the signing of the MoU is a bridge for both parties to expand cooperation in the development of clean energy. This collaboration is in line with Indonesia’s goal of achieving the Net Zero Emission (NZE) target by 2060. 

"This collaboration is a strategic step for both parties to achieve a global agenda of reducing carbon emissions. In the future, both parties can explore cooperation not only in energy but other sectors as well, including hydrogen development," said Mansury. 

The Director General of Electricity Dadan Kusdiana revealed that Indonesia has a lot of potential NRE, and this collaboration will scale up the development of EBT. 

"PLN is very aggressive in trying to see opportunities and the possibilities of developing more green energy. Of course, there are many challenges for PLN, but I think this is an energy transition process," Kusdiana said. 

PLN President Director Darmawan Prasodjo said that dealing with climate change is not only a challenge to preserve the environment, but also a business opportunity. In the future, there will be more PLN projects in energy transition that require collaboration from all parties. 

"ACWA Power and PLN have built very strong, long-term, and productive cooperation," said Prasodjo. 

Prasodjo added that PLN's cooperation with ACWA Power was previously established in the construction of floating photovoltaics in Singkarak and Saguling, with the MoU signed in October 2022. Today, PLN and ACWA further develop their cooperation and commitment, exploring opportunities for joint business expansion, not only domestically, but also abroad. 

The technology challenges faced by PLN and ACWA will be tackled with this cooperation, by exploring the development of NRE projects, such as photovoltaic, wind, hydro, pump storage, battery peaker, battery storage, tidal power, and geothermal. Both parties will also work together to develop green hydrogen and green ammonia facilities. 

"ACWA Power supports Indonesia’s PLN by working together on strategies, technology, and investment," Prasodjo said. 

Meanwhile, ACWA Power CEO Padmannathan said that Indonesia is a unique archipelagic country with diverse natural resources that can be harnessed as an NRE source such as geothermal, solar, wind, and river. This collaboration will be a bridge for both parties to collaborate in supporting energy transition and reducing carbon emissions. 

"We want to explore with PLN in developing renewable energy, expanding hydrogen to reduce carbon dioxide," said Padmannathan. 

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