Masdar to build Southeast Asia’s largest floating solar plant in Malaysia

Abu Dhabi Future Energy Company PJSC – Masdar has entered the Malaysian market for the first time after signing a power purchase agreement to develop a 200-megawatt 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 major 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. The power purchase agreement was signed with Tenaga Nasional Berhad.

Southeast Asia’s largest floating solar project

Occupying approximately 950 acres, the Chereh Dam floating solar plant will have a generation capacity exceeding 300MWp (200MWac), enough to power the equivalent of more than 100,000 homes. The project value 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 its national energy mix to 35 per cent by 2030, with floating solar expected to play a key role in meeting this target.

Mohamed Jameel Al Ramahi, CEO of Masdar, said: “This milestone project, our largest floating solar development globally and our inaugural project in Malaysia, reaffirms Masdar’s expertise in floating solar and our position as a trusted partner across the region.

“By leveraging our experience in delivering utility-scale solutions worldwide, we can provide affordable, secure, clean energy to the Malaysian people.”

He said he looks forward to working closely with Citaglobal, Tiza Global and the Government of Malaysia to help deliver the country’s renewable energy roadmap.

Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, said the project reflects Citaglobal’s role as a long-term Malaysian partner in delivering sustainable energy infrastructure.

“By combining Masdar’s global expertise with Citaglobal’s strong local execution capability and institutional understanding, this collaboration 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 resilience.”

Tender win and wider roadmap

The project was secured through a competitive tender under Malaysia’s Large Scale Solar Cycle 5+ programme, with the Masdar-led consortium achieving L1, the lowest tariff in the floating solar category.

Masdar’s global network and supply chain partnerships were key to the successful bid.

The award builds on Masdar’s track record in floating solar, including the 145MW Cirata Floating PV Plant in West Java, Indonesia. The Chereh project will also be the inaugural development under a 10-gigawatt renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023.

Masdar is also advancing a feasibility study for a floating solar installation at the Murum reservoir in Sarawak, in collaboration with Sarawak Energy and Gentari. That project would support Malaysia’s National Energy Transition Roadmap and the New Industrial Master Plan 2030.

Technology and financing

The Chereh floating solar plant will deploy advanced technology tailored to the dam’s unique characteristics to optimise performance, resilience and long-term efficiency.

The development will be financed through a non-recourse project finance structure with participation from international lenders, reflecting confidence in the project’s fundamentals.

Masdar said it will work closely 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 smooth execution and long-term continuity beyond the commercial operation date.

With a global portfolio spanning more than 40 countries and a mandate to deliver 100GW of clean energy capacity by 2030, Masdar continues to scale projects that deliver affordable clean energy aligned with national development goals.