Regional Solar: Masdar to develop SE Asia’s largest floating solar project

By Romel S. Gurky

Renewable energy firm Abu Dhabi Future Energy Company PJSC (Masdar) has marked its entry into the Malaysian renewable energy market with the signing of a power purchase agreement (PPA) to develop a 200-megawatt (MW) floating solar photovoltaic project at the Chereh Dam in Pahang.

The project will be developed by a consortium led by Masdar together with Malaysian partners Citaglobal and Tiza Global, with the PPA signed with national utility Tenaga Nasional Berhad. Once operational, the Chereh Dam plant will be the largest floating solar facility in Southeast Asia.

The project will cover around 950 acres and have an installed capacity of more than 300 megawatt-peak (MWp), equivalent to 200 MWac, sufficient to supply electricity to more than 100,000 homes. Total investment in the project is estimated at over RM850 million (about US$208 million).

The floating solar project was awarded under Malaysia’s Large Scale Solar (LSS) Cycle 5+ program through a competitive tender process. Masdar’s consortium secured the lowest tariff in the floating solar category, reflecting its experience in utility-scale floating solar developments, including the 145 MW Cirata Floating PV project in West Java, Indonesia.

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Masdar CEO Mohamed Jameel Al Ramahi said the Chereh project represents both the company’s inaugural investment in Malaysia and its largest floating solar development globally, highlighting Masdar’s technical expertise and regional track record. Citaglobal Executive Chairman and President Tan Sri Dr. Mohamad Norza Zakaria said the collaboration combines Masdar’s global capabilities with strong local execution to support Malaysia’s energy security and long-term economic resilience.

The project supports Malaysia’s target of raising the share of renewables in its energy mix to 35% by 2030, with floating solar expected to play a key role. It is also the first project under a broader 10-gigawatt renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority (MIDA) in 2023.

Masdar is also conducting a feasibility study for another large floating solar project at the Murum reservoir in Sarawak in partnership with Sarawak Energy and Gentari, which could further expand Malaysia’s renewable capacity.

The Chereh project will use site-specific floating solar technology designed to suit the dam’s characteristics and will be financed through a non-recourse project finance structure involving international lenders. Masdar said close coordination with Malaysian authorities and local stakeholders will be maintained throughout development, construction and operations to ensure long-term project sustainability.

Editing by Alexander Ginting