Abu Dhabi-based Masdar has signed a power purchase agreement (PPA) for a 200 MW floating solar photovoltaic (PV) project at Chereh Dam in Pahang State, marking its first renewable energy investment in Malaysia. Once completed, the project is expected to be the largest floating solar facility in Southeast Asia and will supply clean electricity to more than 100,000 homes.
The project will be developed by a Masdar-led consortium that includes local partners Citaglobal and Tiza Global. Power generated from the facility will be sold under a long-term PPA to Tenaga Nasional Berhad, Malaysia’s national electricity utility. Awarded under the Large Scale Solar Cycle 5+ programme, the project secured the lowest tariff in the floating solar category, highlighting its cost competitiveness.
Designed with a DC capacity exceeding 300 MWp, the floating solar plant will cover around 950 acres of reservoir surface. Floating PV technology was selected to optimise land use while benefiting from natural panel cooling and reduced water evaporation, improving overall system efficiency. The total investment is estimated at around US$208 million, structured through non-recourse project financing supported by international lenders.
The Chereh Dam project forms part of a broader 10 GW renewable energy roadmap agreed in 2023 between Masdar and Malaysian authorities, supporting Malaysia’s goal of raising the share of renewables to 35 percent of its energy mix by 2030. Leveraging its experience from major floating solar developments such as Indonesia’s Cirata project, Masdar said the initiative strengthens its presence in Southeast Asia and contributes to regional decarbonisation and energy security.
