Abu Dhabi’s Masdar Launches Southeast Asia’s Largest Floating Solar Project in Malaysia
Introduction to the Partnership
In a groundbreaking initiative for Malaysia’s renewable energy sector, Abu Dhabi’s leading renewable energy firm, Masdar, has established a key partnership to spearhead the largest floating solar project in Southeast Asia. Collaborating with local partners Citaglobal and Tiza Global, Masdar has officially inked a power purchase agreement with Tenaga Nasional Berhad, Malaysia’s primary utility provider. This landmark project is set to transform the energy landscape, particularly at the Chereh Dam in Pahang State.
Scope of the Floating Solar Project
The floating photovoltaic plant at Chereh Dam will cover approximately 950 acres of reservoir surface, boasting a generation capacity that is expected to exceed 300 megawatts peak (MWp). This quantity of clean energy is projected to meet the electricity needs of over 100,000 homes, marking a significant contribution to Malaysia’s energy requirements.
Valued at over $208 million, this project aligns with Malaysia’s ambitious target to achieve 35% of its national energy mix from renewable sources by the year 2030. The project showcases a strategic move toward enhancing the country’s energy security and sustainability initiatives.
Masdar’s Commitment
Masdar’s CEO, Mohamed Jameel Al Ramahi, emphasized the importance of this project, stating that it represents the company’s largest floating solar endeavor globally and its first venture in Malaysia. “This milestone reaffirms Masdar’s expertise in floating solar technology,” he noted, stressing the commitment to offering affordable and clean energy solutions. Al Ramahi highlighted the collaboration with Citaglobal, Tiza Global, and the Malaysian government as essential in supporting the nation’s energy roadmap.
Achieving Competitive Advantage
The consortium’s winning bid for this project came through a competitive tender process as part of Malaysia’s Large Scale Solar Cycle 5+ program. Masdar’s ability to secure the lowest tariff in its category reflects its robust global supply chain and proven regional track record, including notable projects such as the 145MW Cirata floating solar plant in Indonesia.
Citaglobal’s Role in Sustainability
Citaglobal’s involvement highlights its commitment as a long-term partner in establishing sustainable infrastructure in Malaysia. Executive Chairman and President Tan Sri Dr. Mohamad Norza Zakaria expressed confidence in the collaborative effort, noting that the combination of Masdar’s global expertise with Citaglobal’s local execution capabilities would ensure the delivery of the project to the highest international standards. He reiterated the potential of the Chereh floating solar initiative to bolster Malaysia’s energy security and long-term economic resilience.
Aligning with National Energy Goals
The Chereh Dam installation is the first tangible outcome of a comprehensive 10-gigawatt renewable energy roadmap established between Masdar and the Malaysian Investment Development Authority in 2023. As part of broader efforts, Masdar is currently conducting feasibility studies for another major floating solar project at Murum Reservoir in Sarawak, collaborating with Sarawak Energy and Gentari. Both projects are in alignment with Malaysia’s National Energy Transition Roadmap and New Industrial Master Plan for 2030.
Local Integration and Advanced Technology
One of the core objectives of the Chereh project is to achieve deep local integration, which is facilitated by a Site Agreement with Pahang Water & Energy Resources. This partnership aims to guarantee uninterrupted execution and operation in the long run.
The project will utilize advanced floating solar technology that has been specifically designed to adapt to the dam’s unique topography. This approach aims to enhance performance and durability, while also conserving freshwater by minimizing evaporation.
Financial Backing and Market Confidence
The project will be financed through a non-recourse structure involving international lenders, a testament to the strong market confidence in its viability. Floating solar technology, with its efficient land usage and scalability, is particularly well-suited to Malaysia’s geographic characteristics.
As Masdar continues to expand its portfolio across more than 40 countries, its initiative at Chereh Dam exemplifies how international expertise can synergize with local partnerships to drive national energy ambitions, showcasing how innovative solutions can effectively harness solar energy to promote sustainable growth.
