Abu Dhabi Future Energy Company PJSC – Masdar entered the Malaysian market for the first time after signing a power purchase agreement to develop a 200-meter floating solar photovoltaic project at the Chereh Dam in Pahang State.
Once operational, the plant will be the largest floating solar project in Southeast Asia, marking a milestone for both Masdar and Malaysia’s clean energy ambitions.
The project will be developed by a consortium led by Masdar, together with Malaysian partners Citaglobal and Tiza Global. A power purchase agreement was signed with Tenaga Nasional Berhad.
The largest floating solar project in Southeast Asia
Covering approximately 950 hectares, the Chereh Dam floating solar plant will have a production capacity of more than 300MWp (200MWac), enough to power the equivalent of more than 100,000 homes. The value of the project is estimated at more than RM850m ($208m).
The investment strengthens Masdar’s position as a partner in accelerating Malaysia’s energy transition. Malaysia aims to increase the share of renewables in the national energy mix to 35 percent by 2030, with floating solar expected to play a key role in meeting this target.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “This landmark project, our global floating solar development and our first project in Malaysia, confirms Masdar’s expertise in floating solar and our position as a trusted partner across the region.
“By leveraging our experience in delivering global scale solutions, we can provide affordable, secure, clean energy to the people of Malaysia.”
He said he looks forward to working closely with Citaglobal, Tiza Global and the Malaysian Government to help deliver the country’s renewable energy road.
Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, said the project reflects Citaglobal’s role as Malaysia’s long-term partner in delivering sustainable energy infrastructure.
“By combining Masdar’s global expertise with Citaglobal’s strong operational capabilities and institutional expertise, this partnership gives us confidence that the Chereh floating solar project will be delivered to the highest international standards, while strengthening Malaysia’s energy security and long-term economic sustainability.”
Winning tenders and wide road
The project was obtained through a competitive tender under Malaysia’s Large Scale Solar Cycle 5+ program, a consortium led by Masdar achieved L1, the lowest tariff in the floating solar category.
Masdar’s global network and supply chain collaboration were key to the successful bid.
The award builds on Masdar’s track record for floating solar, including the 145MW Cirata Floating PV Plant in West Java, Indonesia. The Chereh project will also be the first development under the 10-gigawatt renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority by 2023.
Masdar is also developing a feasibility study for the installation of floating solar on the Murum reservoir in Sarawak, in collaboration with Sarawak Energy and Gentari. That project will support Malaysia’s National Energy Transition Roadmap and New Industrial Master Plan 2030.
Technology and finance
The Chereh floating solar plant will use advanced technology coupled with the unique characteristics of the dam to improve efficiency, sustainability and long-term efficiency.
The development will be financed through a project finance framework that does not require the assistance and participation of international lenders, which shows confidence in the project’s fundamentals.
Masdar said it will work with Malaysian authorities and local stakeholders throughout development, construction and operations.
Agreements such as the site agreement with Pahang Water & Energy Resources are designed to ensure efficiency and long-term continuity beyond the day of commercial operation.
With a global portfolio covering more than 40 countries and a mandate to deliver 100GW of clean energy by 2030, Masdar continues to scale projects that deliver cost-effective clean energy that aligns with national development goals.
