Wedoany.com Report-Dec.28, A consortium led by Abu Dhabi-based renewable energy developer Masdar has signed a power purchase agreement (PPA) for a 200 MW floating solar project at Chereh Dam in Malaysia.

The project, known as the Chereh Dam solar plant, will be developed by Masdar in partnership with Malaysian companies Citaglobal and Tiza Global. The consortium entered into the PPA with Malaysia's national utility, Tenaga Nasional Berhad.

The initiative, valued at more than $208 million, will span approximately 950 acres (384 hectares) on the reservoir surface. Once operational, it is expected to generate sufficient clean energy to power over 100,000 homes.

Financing for the project will follow a non-recourse project finance structure, with involvement from international lenders. The development was awarded under Malaysia's fifth large-scale solar program, with results announced in September. Masdar secured the lowest tariff in the floating solar category during the bidding process.

This marks Masdar's first entry into the Malaysian renewable energy market. The Chereh Dam project follows the 2023 agreement between Masdar and the Malaysian Investment Development Authority for a 10 GW renewable energy roadmap. The company is also conducting a feasibility study for a large-scale floating solar installation at the Murum reservoir in Sarawak, working alongside Sarawak Energy and Gentari.

Upon completion, Chereh Dam will become the largest floating solar facility in Southeast Asia. Masdar already operates the 145 MW Cirata floating photovoltaic plant in West Java, Indonesia, demonstrating its experience in deploying large-scale floating PV systems in the region.

Mohamed Jameel Al Ramahi, Masdar's Chief Executive Officer, said the project represents the company’s largest floating solar asset globally to date. "By leveraging our experience in delivering utility-scale solutions worldwide, we can provide affordable, secure clean energy to the Malaysian people," he added.

The agreement supports Malaysia's efforts to expand renewable energy capacity and diversify its power generation mix. Floating solar technology utilizes existing water surfaces, offering an efficient use of land while helping to reduce water evaporation from reservoirs.

This collaboration highlights the growing interest in floating solar solutions across Southeast Asia, where abundant water bodies and high solar potential create favorable conditions for such projects.

The Chereh Dam development strengthens regional energy security and contributes to sustainable power supply for local communities and industries.