Masdar Plans Southeast Asia’s Largest Floating Solar Plant in Malaysia
Masdar Enters Malaysian Market
Abu Dhabi Future Energy Company PJSC, known as Masdar, has officially entered the Malaysian renewable energy sector with a significant venture. The company has signed a power purchase agreement to construct a 200-megawatt floating solar photovoltaic project at the Chereh Dam, located in Pahang State. This initiative marks a pivotal step in Masdar’s expansion strategy in Southeast Asia.
Once operational, this facility is projected to become the largest floating solar project in the region. This endeavor not only represents a landmark achievement for Masdar but also aligns with Malaysia’s broader clean energy aspirations.
Collaborative Development Efforts
The project will be executed by a consortium led by Masdar, in collaboration with local partners. This consortium comprises Citaglobal and Tiza Global, with the power purchase agreement executed with Tenaga Nasional Berhad, Malaysia’s primary electricity utility.
Occupying a substantial area of approximately 950 acres, the Chereh Dam floating solar plant is designed to generate capacity exceeding 300 megawatt-peak (MWp), which equates to approximately 200 megawatts alternating current (MWac). This capacity is sufficient to provide power to over 100,000 homes, with a total project value surpassing RM850 million (approximately $208 million).
Strengthening Malaysia’s Energy Transition
The floating solar project reinforces Masdar’s commitment to bolstering Malaysia’s energy transition. The country has set a target to elevate the share of renewable energy in its national energy mix to 35% by 2030. Floating solar technology is anticipated to play a crucial role in achieving this objective.
Mohamed Jameel Al Ramahi, CEO of Masdar, expressed enthusiasm about the project, stating, “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.” He emphasized the importance of their experience in delivering large-scale energy solutions to ensure the provision of affordable and clean electricity to the Malaysian population.
Commitment to Local Collaboration
Al Ramahi further highlighted Masdar’s eagerness to work closely with Citaglobal, Tiza Global, and the Malaysian government to advance the nation’s renewable energy roadmap. Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, echoed this sentiment. He remarked on the project’s significance and Citaglobal’s long-term partnership role in developing sustainable energy infrastructure within Malaysia.
“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,” Zakaria stated. He added that the project would enhance Malaysia’s energy security and economic resilience.
Competitive Tender Process
The Chereh project was secured through a competitive tender within Malaysia’s Large Scale Solar Cycle 5+ program. The Masdar-led consortium achieved the lowest tariff (L1) in the floating solar category, highlighting its competitive edge. Masdar’s extensive global network and supply chain partnerships were critical to winning this bid.
This award builds on Masdar’s successful history in floating solar installations, including the notable 145MW Cirata Floating PV Plant in West Java, Indonesia. Furthermore, the Chereh project is set to be the inaugural development under a comprehensive 10-gigawatt renewable energy roadmap, which was established in collaboration with the Malaysian Investment Development Authority in 2023.
Future Projects and Innovations
Masdar is also progressing with a feasibility study for another floating solar project at the Murum reservoir in Sarawak, in partnership with local energy authorities. This initiative aims to support Malaysia’s National Energy Transition Roadmap and the New Industrial Master Plan 2030.
The Chereh floating solar plant will incorporate advanced technologies optimized for the unique characteristics of the dam. This approach aims to enhance performance, resilience, and long-term efficiency of the project.
Financing and Long-Term Strategy
The Chereh floating solar plant will utilize a non-recourse project financing structure, involving participation from international lenders who exhibit confidence in the project’s fundamentals. Masdar has affirmed its commitment to collaboration with Malaysian authorities and local stakeholders during all stages of development, construction, and operational phases.
Agreements, such as the site agreement with Pahang Water & Energy Resources, have been established to ensure seamless execution and sustainable continuity beyond the commercial operation date.
Masdar is dedicated to expanding its global portfolio, which spans over 40 countries, and aims to generate 100 gigawatts of clean energy capacity by 2030. The company continues to pursue projects that provide affordable clean energy solutions in line with national development goals.
Published on 1766514230 • Category: Energy, Malaysia, Masdar, Masdar Clean Energy, Solar energy