Masdar begins construction on Southeast Asia’s largest floating solar venture in Malaysia

Abu Dhabi's renewable energy champion marks a significant milestone in its regional expansion with the start of building on a 200-megawatt solar installation destined to power 100,000 homes.

Construction has begun on the Chereh Dam Floating Solar Project in Pahang, Malaysia, a 200-megawatt installation that stands as one of Southeast Asia’s most ambitious renewable energy undertakings. The groundbreaking ceremony, attended by His Royal Highness Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, the Sultan of Pahang, and Wan Rosdy Wan Ismail, Chief Minister of Pahang, marks the formal commencement of a venture that will reshape Malaysia’s energy landscape when operations commence in 2028.

Developed by Chereh Solar Sdn Bhd, a partnership between Abu Dhabi Future Energy Company PJSC (Masdar), Citaglobal Berhad and TIZA Global Sdn Bhd, the project embodies a convergence of expertise and ambition. Masdar brings its established floating solar capabilities, refined through its work on the 145-megawatt Cirata project in Indonesia, whilst Citaglobal contributes deep infrastructure and energy development experience and TIZA Global brings project development acumen and local stakeholder engagement. The installation will generate sufficient electricity to serve the equivalent of 100,000 households and is anticipated to create approximately 1,500 jobs during the development and construction phases.

Financial close was reached on 27 October with approximately 580 million Malaysian ringgit secured from three international lenders, a structure that aligns project funding with future revenues whilst drawing international capital into Malaysia’s renewable energy sector. The project benefits from a 21-year power purchase agreement with Tenaga Nasional Berhad, Malaysia’s national utility company, signed in December 2025, having been selected through Malaysia’s Large Scale Solar Cycle 5+ competitive tender process with the consortium’s bid offering the lowest tariff in the floating solar category.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, noted that Malaysia represents a strategically important market with rising electricity demand and strong renewable energy potential. Chereh marks Masdar’s first project in Malaysia and serves as the inaugural venture under a 10-gigawatt renewable energy roadmap agreed with the Malaysian Investment Development Authority in 2023. The company is also progressing a feasibility study for a significant floating solar installation at the Murum reservoir in Sarawak, reflecting the breadth of its commitment to the region.

By utilising an existing reservoir for solar generation, the project reduces the pressure on land-based solar development at a moment when Malaysia has committed to increasing the share of renewables in its installed electricity-generation capacity to 35 per cent by 2030. As the nation accelerates its renewable energy transition, projects such as Chereh demonstrate how advanced technology and international partnership can unlock sustainable solutions that serve both environmental and economic objectives.

What it means for Abu Dhabi

Chereh represents a significant expansion of Abu Dhabi’s renewable energy influence across Southeast Asia. As Masdar’s first project in Malaysia, it exemplifies how the Emirate’s clean energy expertise is gaining traction in rapidly growing markets, strengthening Abu Dhabi’s position as a global leader in sustainable energy development and positioning it as a trusted partner for nations seeking to advance their renewable energy ambitions.

The project also reinforces the UAE’s broader strategic engagement with the region. As we reported in our coverage of the UAE’s deepened strategic partnerships, the Emirate continues to forge meaningful collaborations across energy, infrastructure and innovation with Southeast Asian nations, establishing foundations for long-term economic cooperation and technological exchange that benefit both parties.