Masdar has signed a power purchase agreement (PPA) to develop a 200 MW floating solar project at the Chereh dam in Pahang state, Malaysia. The project will be implemented by a consortium led by Masdar, along with Citaglobal and Tiza Global, and the agreement has been executed with Tenaga Nasional Berhad, Malaysia’s national utility company. The project was awarded under Malaysia’s Large Scale Solar Cycle 5+ programme, where the consortium reportedly secured the lowest tariff in the floating solar category.
The project will occupy around 950 acres and is designed with a generation capacity exceeding 300 MWp, equivalent to 200 MWac. It is expected to supply electricity sufficient for more than 100,000 households. The total project value has been estimated at over $208 million. It will utilise floating solar technology tailored to the specific characteristics of the Chereh dam to support long-term operational performance. Furthermore, the project will be financed through a non-recourse project finance structure with participation from international lenders, and will involve coordination with Pahang Water & Energy Resources during development, construction, and operations.
Additionally, the project represents the first development under a 10 GW renewable energy roadmap agreed between Masdar and the Malaysian Investment Development Authority in 2023. Once commissioned, it is reportedly expected to become the largest floating solar installation in Southeast Asia. Malaysia has set a target of increasing the share of renewables in its national energy mix to 35 percent by 2030, with floating solar a key part of its clean energy goals.
