Masdar has started construction on the 200 MW Chereh Dam floating solar project in the Malaysian state of Pahang, its first project in the country and one of the largest floating solar developments in Southeast Asia.
The project reached financial close on 27 October with about MYR 580 million (US$142 million) from three international lenders, and is expected to begin operations in 2028. Its output will be sold to Malaysia's national utility, Tenaga Nasional Berhad, under a 21-year power purchase agreement.
A floating plant on a reservoir
The Chereh Dam Floating Solar PV Project is developed by Chereh Solar Sdn Bhd, the project company of the partners Masdar, Citaglobal Berhad and TIZA Global Sdn Bhd. Citaglobal is the EPC contractor, PV Tech reported, and TIZA Global coordinated the three lenders.
Masdar said the plant will generate electricity equivalent to the needs of about 100,000 homes and create about 1,500 jobs during development and construction. Pahang Water and Energy Resources has signed a site agreement supporting the project.
Won in a national tender
The consortium won the project under Malaysia's Large Scale Solar (LSS) Cycle 5+ programme, where, according to Masdar, its bid offered the lowest tariff in the floating solar category. The power purchase agreement with Tenaga Nasional Berhad was signed in December 2025 and runs for 21 years from commercial operation.
The groundbreaking ceremony was attended by the Sultan of Pahang, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, and the Chief Minister of Pahang, Wan Rosdy Wan Ismail.
"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," the Sultan said.
Masdar's Southeast Asia push
"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," said Mohamed Jameel Al Ramahi, chief executive officer of Masdar.
"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," he added.
According to PV Tech, Chereh is the first part of a 10 GW renewable energy roadmap that Masdar agreed with the Malaysian Investment Development Authority (MIDA) in 2023. The company previously developed the 145 MW Cirata floating solar plant in Indonesia and is studying a further floating installation at the Murum reservoir in Sarawak, Malaysia.
Tan Sri Dato' Sri (Dr.) Mohamad Norza Zakaria, executive chairman and president of Citaglobal Berhad and TIZA Global, said: "With long-term electricity sales contracted to TNB, the priority now is to deliver the project and bring it into operation."
Malaysia aims to raise renewables to 35% of its installed electricity-generation capacity by 2030.
What it means for Asia-Pacific developers
Floating solar is reaching utility scale in Southeast Asia, following Masdar's 145 MW Cirata plant in Indonesia. A 200 MW plant financed by international lenders and backed by a 21-year contract with the national utility shows that the model can be banked. For developers and suppliers, Malaysia's LSS tenders and Masdar's 10 GW roadmap point to a growing pipeline, and the lowest-tariff result in the floating category sets a benchmark for future bids.
Source: Masdar, 29 October 2026; PV Tech, 30 October 2026
