Acwa Power signs deal on Indonesian solar project

Saudi Arabia’s Acwa Power has signed a power purchase agreement (PPA) with Indonesia’s state-owned electricity utility PT Perusahaan Listrik Negara (Persero) for the 60 megawatt (MW) Saguling floating solar PV project.

The Saudi-listed renewable major has a 49 percent stake in the project, with the rest being held by Indonesia Power, a subsidiary of PT Perusahaan, which is the principal offtaker for the project.

This project is the first for Acwa Power in Indonesia and paves the way for further growth in the country, chief investment officer Thomas Brostrom said.

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The floating solar PV project will enable Indonesia to achieve its renewable energy target of 23 percent by 2025 under the country’s National General Energy Plan.

In addition, work is underway on the $1 billion Garuda Hidrogen Hijau (GH2) Project, the country’s largest green hydrogen facility, in collaboration with PLN.

The project, expected to start commercial operations in 2026, will run on 600 MW of solar and wind power, producing 150,000 tonnes of green ammonia per year.  

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The financial close for the project is planned by the end of 2025. 

This month, Acwa Power reported a net profit of SAR927 million ($247 million) in the first half of 2024, up 35 percent from SAR684 million a year ago.

Revenue increased by 3 percent year on year to SAR2.8 billion, driven by a gain from divestment and higher finance and other income.