Floating Solar Malaysia Milestone As Masdar Leads 200MW Chereh Dam Project

Abu Dhabi Future Energy Company PJSC – Masdar is entering the Malaysian market with a 200-megawatt floating solar photovoltaic project at Chereh Dam in Pahang State, under a newly signed power purchase agreement with Tenaga Nasional Berhad. Once operating, the plant is expected to be the largest floating solar installation in Southeast Asia and will support Malaysia’s national clean energy targets for 2030.

The project is being delivered by a consortium headed by Masdar, in partnership with Malaysian firms Citaglobal and Tiza Global. The development is valued at more than RM850 million, or around US$208 million. The Chereh Dam facility will supply power equivalent to more than 100,000 homes, highlighting how large-scale floating solar can contribute to regional energy security and climate goals.

Covering roughly 950 acres on the reservoir surface, the Chereh Dam project will be built using floating solar technology tailored to the site’s shape and hydrological conditions. The plant is designed for a generation capacity exceeding 300MWp, or 200MWac. Engineers aim to optimise performance, resilience and long-term operational efficiency under local weather patterns, while maintaining stable operations across the full platform area.

Floating solar PV is seen as a practical option for countries with limited land and high population density, such as Malaysia. Systems on water benefit from natural cooling, which can improve output compared with ground-mounted arrays. They also reduce evaporation and help conserve freshwater resources. These characteristics support Malaysia’s wider environmental priorities as it scales renewable power across multiple regions and reservoirs.

Malaysia has set a goal to lift renewables to 35 percent of its national energy mix by 2030, and policymakers view floating solar as a central technology within that plan. The Chereh Dam project is the first initiative under a 10-gigawatt renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023, signalling a long-term pipeline of cooperation between both parties.

The project advances several Malaysian policy frameworks, including the National Energy Transition Roadmap and the New Industrial Master Plan 2030. By combining foreign investment with local delivery, the scheme is expected to support industrial development and infrastructure modernisation. It also aligns with regional efforts to cut emissions and diversify generation sources away from conventional fuels in Southeast Asia.

Masdar floating solar project Malaysia: consortium, tenders and financing

The Chereh Dam plant was awarded through Malaysia’s Large Scale Solar Cycle 5+ tender. The Masdar-led consortium secured L1 status, the lowest tariff within the floating solar category, supported by Masdar’s international supply chain and project development experience. This pricing outcome highlights competitive pressure within the Malaysian solar market and the growing role of global players in local procurement rounds.

Project funding will use a non-recourse structure with involvement from international lenders, reflecting investor confidence in the asset’s projected revenues and risk profile. Masdar and its partners intend to maintain close cooperation with Malaysian authorities through construction and operations. Agreements such as the Site Agreement with Pahang Water & Energy Resources are structured to ensure smooth delivery and long-term integration with regional infrastructure.

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Masdar floating solar project Malaysia: partnerships, roadmap and regional portfolio

Masdar is also working on a feasibility study for a large floating solar array at the Murum reservoir in Sarawak, alongside Sarawak Energy and Gentari. If developed, that project would add further renewable capacity to Malaysia and complement the Chereh installation. Across the region, Masdar has already delivered the 145MW Cirata Floating PV Plant in West Java, Indonesia, underpinning its credentials in this specialised segment.

"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," said Mohamed Jameel Al Ramahi, CEO of Masdar. "By leveraging our experience in delivering utility-scale solutions worldwide, we can provide affordable, secure, clean energy to the Malaysian people.

Al Ramahi stated that Masdar plans to work closely with Citaglobal, Tiza Global and the Government of Malaysia to help execute the country’s renewable roadmap. Tan Sri Dr. Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad, said that this collaboration supports Malaysia’s long-term energy ambitions while drawing on complementary strengths within the consortium.

"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," he added. For Masdar, which targets 100GW of clean energy capacity worldwide by 2030 across more than 40 countries, Chereh Dam represents both a commercial asset and a strategic entry into the Malaysian market.

With inputs from WAM