Masdar starts construction for one of Southeast Asia’s largest floating solar projects in Malaysia

Abu Dhabi Future Energy Company PJSC (Masdar), Citaglobal Berhad and TIZA Global Sdn Bhd today marked the start of construction of the 200-megawatt (MW) Chereh Dam Floating Solar PV Project with a groundbreaking ceremony in Pahang, Malaysia. Chereh Solar Sdn Bhd, the partners’ project company, is developing the plant, which is expected to begin operations in 2028.

One of the largest floating solar developments in Southeast Asia, Chereh is expected to generate sufficient clean electricity to power the equivalent of 100,000 homes. The project will create around 1,500 jobs during development and construction.

The project combines Masdar’s floating solar experience, including its work on the 145MW Cirata project in Indonesia, with Citaglobal’s infrastructure and energy development capabilities and TIZA Global’s project development and local stakeholder engagement experience.

The ceremony was attended by His Royal Highness Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, the Sultan of Pahang; Wan Rosdy Wan Ismail, Chief Minister of Pahang, together with senior leadership from the project partners.

His Royal Highness Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, the Sultan of Pahang said:

Pahang is committed to supporting initiatives that advance sustainable development and create lasting value for our people. The Chereh Floating Solar Project reflects how our natural resources can be used responsibly to contribute to Malaysia’s renewable energy ambitions, while bringing opportunities for local communities and industry. I look forward to seeing the project deliver meaningful benefits for Pahang and the nation.''

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, commented: Malaysia is a strategically important market for Masdar, with rising electricity demand, strong renewable energy potential and growing investment in advanced industries and digital infrastructure. As our first project in the country, Chereh marks an important milestone in our long-term commitment to Malaysia and our expansion across Southeast Asia. By combining Masdar’s global floating solar expertise with strong local partnerships, we will support Malaysia’s energy ambitions while creating jobs and new economic opportunities in Pahang.''

Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad and TIZA Global Sdn Bhd, said:

The start of construction at Chereh is an important step in building Citaglobal’s renewable power generation portfolio. With long-term electricity sales contracted to TNB, the priority now is to deliver the project and bring it into operation. Citaglobal and TIZA Global will work closely with Masdar and the project team, drawing on our infrastructure and local development experience to support delivery in Pahang.''

Financial close was reached on the project on 27 October, with approximately 580 million MYR raised in Malaysian ringgit from three international lenders. The financing structure aligns project funding with future project revenues while attracting international capital into Malaysia's renewable energy sector and supporting long-term local economic participation.

Chereh Solar Sdn Bhd signed the power purchase agreement (PPA) with Tenaga Nasional Berhad, Malaysia’s national utility company, in December 2025. The agreement provides for the sale of electricity generated by the project for 21 years from commercial operation. The project was secured through a competitive tender process under Malaysia’s Large Scale Solar (LSS) Cycle 5+ programme, with the consortium’s bid offering the lowest tariff in the floating solar category.

Through its investment in Chereh Solar, Citaglobal is expanding its participation in renewable power generation alongside its established infrastructure activities. Chereh forms a key component of the Group’s New Energy platform, which spans solar, hydropower and Bio-CNG initiatives.

For Masdar, Chereh is its first project in Malaysia and will be the inaugural project under the 10-gigawatt renewable energy roadmap agreed with the Malaysian Investment Development Authority (MIDA) in 2023. Masdar is also progressing a feasibility study for a major floating solar installation at the Murum reservoir in Sarawak.

The partners will work closely with Malaysian authorities, local communities and stakeholders throughout development, construction and operations. A Site Agreement has also been signed with Pahang Water & Energy Resources to support the project’s development.

By using an existing reservoir for solar generation, the project reduces the need for land-based solar sites. Malaysia has targeted increasing the share of renewables in its installed electricity-generation capacity to 35% by 2030, with floating solar expected to contribute significantly to this target.

WAM