Abu Dhabi Future Energy Company PJSC – Masdar has announced its first renewable energy project in Malaysia with the signing of a power purchase agreement to develop a 200 MW floating solar photovoltaic plant at the Chereh Dam in Pahang State. Once operational, the project will become the largest floating solar power plant in Southeast Asia, marking a major milestone for both Masdar and Malaysia’s clean energy journey.
The project will be developed by a consortium led by Masdar in partnership with Malaysian companies Citaglobal and Tiza Global. The power purchase agreement has been signed with Tenaga Nasional Berhad, Malaysia’s national utility company. Spread across around 950 acres of the Chereh Dam, the plant will have an installed capacity of over 300 MWp, equivalent to 200 MWac, and is expected to generate enough electricity to power more than 100,000 homes. The total project value is estimated at over RM850 million, or around US$208 million.
The floating solar project was awarded through Malaysia’s Large Scale Solar Cycle 5+ competitive tender programme. The Masdar-led consortium secured the project by offering the lowest tariff in the floating solar category, supported by Masdar’s global supply chain and project development experience. The award further strengthens Masdar’s presence in Southeast Asia, building on its earlier work, including the 145 MW Cirata floating solar plant in Indonesia.
Masdar’s leadership said the Chereh Dam project is both its largest floating solar development globally and its first venture into the Malaysian market. The company highlighted that the project reflects its expertise in delivering large-scale renewable energy solutions and its commitment to providing affordable and reliable clean power. Masdar also noted that it looks forward to working closely with its Malaysian partners and government authorities to support the country’s renewable energy targets.
Malaysia aims to increase the share of renewables in its energy mix to 35 percent by 2030, with floating solar expected to play an important role. The Chereh project is the first development under a broader 10 GW renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023.
The project will use advanced floating solar technology tailored to the shape and conditions of the Chereh Dam to ensure high performance and long-term efficiency. It will be financed through a non-recourse project finance structure with support from international lenders, reflecting strong confidence in the project. Beyond power generation, the floating solar system is expected to reduce water evaporation and make efficient use of available resources, supporting Malaysia’s wider energy transition goals.
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