Masdar to Develop Southeast Asia’s Largest Floating Solar Power Plant in Malaysia with $208 Million Investment

Abu Dhabi | EcoPulse24

Masdar, the Abu Dhabi Future Energy Company, has unveiled plans to develop Southeast Asia’s largest floating solar photovoltaic power plant through a new project in Malaysia. The plant, to be located at Chereh Dam in Pahang state, will have a capacity of 200 megawatts (MW) and represents Masdar’s first project in Malaysia. The $208 million investment aims to strengthen Masdar’s global footprint in renewable energy and support Malaysia’s energy transition.

The project will be constructed through a consortium led by Masdar in partnership with local firms Citaglobal and Tiza Global. A long-term power purchase agreement has been signed with Malaysia’s national utility, Tenaga Nasional Berhad, ensuring the sale of electricity produced by the plant.

Spanning approximately 950 acres, the plant will have a peak production capacity exceeding 300 MW (200 MW AC), enough to supply electricity to more than 100,000 Malaysian homes. This makes it the largest floating solar project in Southeast Asia to date.

The initiative aligns with Malaysia’s goal to increase the share of renewable energy in its national energy mix to 35% by 2030. Floating solar technology is expected to play a key role in achieving these targets, offering efficient use of water surfaces without placing pressure on land resources.

The Chereh Dam project won the implementation tender after a competitive bidding process in the fifth cycle of Malaysia’s Large Scale Solar (LSS+5) program, submitting the lowest production cost in the floating solar category. Masdar leveraged its global network and expertise in supply chains for this achievement, having previously completed notable projects such as the 145 MW floating Shirata plant in Indonesia.

This project is the first in a broader plan to develop up to 10 GW of renewable energy in Malaysia, as agreed with the Malaysian Investment Development Authority in 2023. Masdar is also exploring another floating solar project at Murum Dam in Sarawak state, in collaboration with local partners.

The plant will be financed through a non-recourse structure involving international lenders, reflecting strong financial confidence in the project. Advanced floating solar technologies tailored to the geographical and hydrological characteristics of Chereh Dam will be deployed to maximize long-term operational efficiency.

Masdar’s global portfolio now spans over 40 countries, with the company targeting a total production capacity of 100 GW by 2030, reinforcing its role as a leading developer of scalable and commercially viable clean energy projects.