Abu Dhabi Future Energy Company PJSC – Masdar has announced its first project in Malaysia, signing a power purchase agreement to develop a 200-megawatt floating solar photovoltaic project at the Chereh Dam in Pahang State. The project will become the largest floating solar installation in Southeast Asia once operational. 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, Malaysia's national utility company, on December 23, 2025.

Project Specifications and Capacity

The Chereh Dam plant will occupy approximately 950 acres and have a generation capacity of more than 300 MWp (200 MWac). The facility will be capable of powering the equivalent of over 100,000 homes. The project value is estimated at more than MYR 850 million (USD 208 million). The development will deploy state-of-the-art floating solar technology specifically designed to address the unique shape and characteristics of the Chereh dam, optimizing performance, resilience, and long-term operational efficiency.

Floating solar systems increase generation efficiency through natural cooling, while simultaneously reducing evaporation and preserving freshwater.

Competitive Award and Market Position

The project was secured through a competitive tender process under Malaysia's Large Scale Solar Cycle 5+ program. Masdar's global network and supply chain partnerships were key to the consortium's bid achieving L1, the lowest tariff in the floating solar category. The award reflects Masdar's proven credentials in developing floating solar PV across the region, including the 145MW Cirata Floating PV Plant in West Java, Indonesia.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, described this as the company's largest floating solar development globally and its inaugural project in Malaysia.

Strategic Partnerships and Future Development

The Chereh floating solar plant represents the inaugural project of the 10-gigawatt renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023. Masdar is also progressing a feasibility study for a major floating solar installation at the Murum reservoir in Sarawak, in collaboration with Sarawak Energy and Gentari.

Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, emphasized that the project reflects Citaglobal's role as a long-term Malaysian partner in delivering sustainable energy infrastructure. The collaboration combines Masdar's global expertise with Citaglobal's local execution capability and institutional understanding.

National Energy Goals and Financing

The investment supports Malaysia's target of increasing the share of renewables in its national energy mix to 35 percent by 2030, with floating solar expected to play a key role in achieving these goals. The project will support key national strategies, including the National Energy Transition Roadmap and the New Industrial Master Plan 2030. Masdar has committed to working closely with Malaysian authorities and local stakeholders throughout development, construction, and operations.

These partnerships include the Site Agreement signed with Pahang Water & Energy Resources, designed to ensure seamless execution, strong local integration, and long-term continuity beyond the commercial operation date. The development will be financed through a non-recourse project finance structure, with participation from international lenders, reflecting strong market confidence in the project's fundamentals.

Floating solar PV offers a land-efficient, scalable energy solution, suited to water-rich, densely populated countries like Malaysia. Masdar operates with an expanding global portfolio across more than 40 countries and a mandate to deliver 100GW of clean energy capacity by 2030. The company continues to drive scalable projects that deliver affordable clean energy and align with national development goals.

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