DEG finances floating solar project for the first time

Floating photovoltaic systems offer an innovative solution for generating renewable energy, especially in regions with limited land area. They enable an improved electricity production through water cooling effects and efficient space utilization, while contributing to water conservation by reducing water evaporation.

As an impact and climate financier, DEG is supporting the development, construction and operation of a 60MW floating solar power plant on the island Java in Indonesia for the first time. It acts as an arranger for a financing of around USD 60 million for ACWA Power Company and state-owned entity Indonesia Power Renewables, who are jointly developing the floating solar. Other financiers are Proparco and Standard Chartered Bank.

Monika Beck, Member of DEG’s Management Board, commented: “We are pleased to promote innovative renewable technologies together with our esteemed partners Standard Chartered Bank and Proparco in providing ACWA Power and Indonesia Power Renewables with a debt financing for developing their first floating solar project in Indonesia. As an impact investor DEG focuses on financing such sustainable transformation projects and is proud to have been the lead arranger in the transaction.”

Once operational, the plant will generate around 92 MWp of renewable energy annually and save at least 63,100 tons of CO2 per year. It thus makes an important contribution to the implementation of Indonesia's climate targets, which aim to increase the share of renewables in the energy mix. At the same time, the initiative supports the sustainable development of the region by responding to the increasing energy demand and promoting innovative technologies.