Masdar led consortium signs PPA for a 200MW floating solar project under Malaysia’s LSS Cycle 5+ with the lowest tariff in its category
$208 million Chereh Dam project anchors Malaysia’s push toward a 35 percent renewable energy mix by 2030
Deal advances a 10GW Masdar–Malaysia renewable roadmap and positions floating solar as a core regional decarbonisation lever
Abu Dhabi Future Energy Company PJSC, Masdar, has entered the Malaysian market with a landmark power purchase agreement to develop a 200MW floating solar photovoltaic project at the Chereh Dam in Pahang State, a move that immediately places the UAE-backed developer at the centre of Southeast Asia’s clean energy buildout.
The agreement, signed with Tenaga Nasional Berhad, Malaysia’s national utility, will see a Masdar-led consortium deliver what is set to become the largest floating solar plant in Southeast Asia once operational. The project has an estimated value exceeding RM850 million, or approximately $208 million, and will supply electricity equivalent to the needs of more than 100,000 homes.
A strategic entry into Malaysia’s energy transition
The Chereh Dam project was secured through Malaysia’s competitive Large Scale Solar Cycle 5+ tender, where the Masdar-led consortium achieved L1, the lowest tariff in the floating solar category. The consortium includes Malaysian partners Citaglobal and Tiza Global, combining Masdar’s global development experience with local execution and institutional knowledge.
Malaysia has set a target to raise the share of renewables in its national energy mix to 35 percent by 2030, with floating solar identified as a priority solution in a country where land availability and water resources shape infrastructure planning. Occupying around 950 acres, the Chereh installation will deliver more than 300MWp of installed capacity, or 200MWac, using floating systems engineered specifically for the dam’s physical characteristics.
Executive backing and national alignment
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, framed the project as both a technical and strategic milestone. “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. By leveraging our experience in delivering utility-scale solutions worldwide, we can provide affordable, secure clean energy to the Malaysian people. We look forward to working closely with Citaglobal, Tiza Global, and the Government of Malaysia to help deliver the country’s ambitious renewable energy roadmap,” he said.
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For Citaglobal, the partnership reflects a long-term national role in energy infrastructure delivery. Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, said, “This project reflects Citaglobal’s role as a long-term Malaysian partner in delivering sustainable energy infrastructure. 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, while strengthening Malaysia’s energy security and long-term economic resilience.”
Financing, technology, and governance
The project will be financed through a non-recourse project finance structure with participation from international lenders, a signal of strong market confidence in both the asset and Malaysia’s regulatory framework. Masdar’s global supply chain relationships were a decisive factor in securing the winning bid.
Technically, the plant will deploy floating solar systems designed to optimise output through natural cooling while reducing water evaporation, an increasingly valuable co-benefit for water-rich but climate-exposed regions. The design also addresses the specific contours and operating conditions of the Chereh Dam to support long-term resilience and operational efficiency.
A platform for regional scale
Chereh is the first project under a broader 10GW renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023. Masdar is also advancing a feasibility study for a large-scale floating solar project at the Murum reservoir in Sarawak, in partnership with Sarawak Energy and Gentari. That development would align with Malaysia’s National Energy Transition Roadmap and the New Industrial Master Plan 2030.
Local integration is central to Masdar’s delivery model. Agreements such as the Site Agreement with Pahang Water and Energy Resources are designed to ensure continuity from development through operations, positioning the asset as a long-term national infrastructure component rather than a standalone power project.
For policymakers, investors, and regional utilities, the Chereh Dam PPA illustrates how floating solar can move from pilot projects to system-scale deployment. For Masdar, it extends a global portfolio spanning more than 40 countries and advances its mandate to reach 100GW of clean energy capacity by 2030, reinforcing Southeast Asia’s role as a critical growth market in the global energy transition.
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