Abu Dhabi-based renewable energy developer Masdar has signed a power purchase agreement (PPA) to develop a 200 MW floating solar photovoltaic (PV) project at Chereh Dam in Pahang State, Malaysia, marking the company’s first renewable energy project in the country.
The project, expected to become Southeast Asia’s largest floating solar facility, will cover approximately 950 acres of reservoir surface. It is designed with a DC capacity exceeding 300 MWp and is anticipated to supply clean electricity to over 100,000 homes.
The solar plant will be developed by a Masdar-led consortium, including local partners Citaglobal and Tiza Global, and will sell power under a long-term PPA to Tenaga Nasional Berhad (TNB), Malaysia’s state-owned utility.
Awarded under Malaysia’s Large Scale Solar Cycle 5+ programme, the project achieved the lowest tariff in the floating solar category (L1). The total investment for the facility is estimated at US$208 million (RM 850 million), with financing arranged through a non-recourse project finance structure supported by international lenders.
Floating solar technology was chosen to maximise energy generation while optimising the existing reservoir area. The system offers benefits including natural cooling, reduced water evaporation, and efficiency tailored to the reservoir’s geometry.
The Chereh Dam project is part of a broader 10 GW renewable energy roadmap agreed in 2023 between Masdar and the Malaysian Investment Development Authority (MIDA), supporting Malaysia’s target to increase renewables to 35% of its energy mix by 2030. Masdar brings extensive experience in floating PV development, including its 145 MW Cirata project in Indonesia, to the initiative.
This milestone reinforces Masdar’s growing presence in Southeast Asia and contributes to the region’s transition toward cleaner, sustainable energy sources, strengthening energy security and supporting climate objectives.
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