Abu Dhabi Future Energy Company PJSC – Masdar has signed a power purchase agreement to develop its first project in Malaysia, a 200-megawatt floating solar photovoltaic plant at the Chereh Dam in Pahang State. Moreover, the project will be developed by a consortium led by Masdar alongside local partners Citaglobal and Tiza Global, with the agreement executed with national utility Tenaga Nasional Berhad.
Landmark floating solar development
Once operational, the Chereh Dam facility will become Southeast Asia’s largest floating solar project. Additionally, the plant will span about 950 acres and deliver more than 300MWp of generation capacity, equivalent to supplying electricity to over 100,000 homes. As a result, the project’s estimated value exceeds RM850 million ($208 million).
The development supports Malaysia’s goal to lift renewables to 35% of the national energy mix by 2030. Therefore, floating solar is expected to play a central role in expanding clean capacity within land-constrained regions.
“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,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “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 ambitious renewable energy roadmap.
Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, said that this 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,” he added.
Strategic pipeline and financing
The project was secured through a competitive tender under Malaysia’s Large Scale Solar Cycle 5+ programme. Consequently, the consortium achieved the lowest tariff in the floating solar category, supported by global supply chain partnerships.
Chereh represents the first project under a 10GW renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023. Furthermore, feasibility work continues on a potential floating solar installation at the Murum reservoir in Sarawak, supporting national transition strategies.
The project will use a non-recourse project finance structure with international lender participation. Therefore, strong market confidence underpins development of the asset, which will deploy customised floating technology designed to optimise long-term performance and operational resilience.
