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Abu Dhabi's clean energy company Masdar plans to develop renewable power in Indonesia for export to Singapore as part of the company's focus on new projects in South-East Asian markets.
Masdar signed a pact with Singapore’s Tuas Power, France’s EDF Renewables and PT Indonesia Power to develop solar photovoltaic plants with a capacity of up to 1.2 gigawatts, with the potential to build associated storage in Indonesia, it said on Tuesday.
"We are fully confident that this ambitious initiative will be a key step towards building a greener and more sustainable future for Indonesia, Singapore and, indeed, the wider region," chief executive Mohamed Al Ramahi said.
"We will leverage the experience we have developed in some 40 countries across the globe to help this cross-border project come to fruition."
Masdar said last March that it expects a "sizeable part" of its renewable energy growth over the next five years to come from South-East Asia and Central Asia as it plans new projects to double capacity.
The company will look to develop new projects in Malaysia, Vietnam, Indonesia and Taiwan, given their high-growth economies and focus on achieving renewable energy targets, it said at the time.
Masdar's new pact also comes after the UAE and Indonesia signed agreements worth billions of dollars during the visit of Indonesian President Joko Widodo to the UAE last November.
The countries are looking to triple trade over the next four years, from $2.5 billion in 2020, as relations strengthen.
Government and private sector entities signed deals in sectors that include energy, aviation, financial services, artificial intelligence, agriculture and defence. Deals valued at about $10bn were signed with Indonesia’s sovereign wealth fund.
In 2020, Masdar also signed a power-purchase agreement with Perusahaan Listrik Negara, Indonesia’s state electricity company, to develop the country’s first floating solar photovoltaic plant.
Masdar announced a financial close on Indonesia's Cirata Floating Photovoltaic Power Plant project last August and it is expected to begin commercial operations in the fourth quarter of this year, the company confirmed on Tuesday.
Singapore is looking to import as much as 4 gigawatts of low-carbon electricity by 2035, which would comprise 35 per cent of its total supply.
The country's Energy Market Authority issued a request for proposal (RFP) last October to appoint suppliers to import about 1.2 gigawatts of electricity into Singapore.
"With Tuas Power’s ideal location for power imports and skilled workforce, and our parent company Huaneng Power International’s expertise in large-scale renewable projects, we are confident this will be a worthy investment for all," said Jiang Hanbin, president and chief executive of Tuas Power.
France's EDF will lead the development of the sub-sea cable project to export power.
"This project will expand our presence in the region even further, following on from our current activities in Vietnam and Indonesia," said Yalim Ozilhan, EDF Renewables' South-East Asia director.