Masdar Secures PPA for Southeast Asia’s Largest 200 MW Floating Solar Project at Malaysia’s Chereh Dam - SolarQuarter
Masdar Secures PPA for Southeast Asia’s Largest 200 MW Floating Solar Project at Malaysia’s Chereh Dam - SolarQuarter
Published January 06, 2026
Masdar Secures Power Purchase Agreement for Southeast Asia’s Largest 200 MW Floating Solar Project at Malaysia’s Chereh Dam
Masdar, a leading renewable energy company based in Abu Dhabi, has successfully secured a Power Purchase Agreement (PPA) for the development of Southeast Asia’s largest floating solar project, which will be situated at the Chereh Dam in Malaysia. This ambitious project is set to generate 200 megawatts (MW) of clean energy, significantly contributing to the region's renewable energy capacity.
The PPA was signed with the Malaysia-based utility company, Tenaga Nasional Berhad (TNB), which will facilitate the sale of electricity generated by the floating solar facility. This agreement marks a significant milestone in Malaysia's efforts to enhance its renewable energy landscape and reduce reliance on fossil fuels.
Project Overview
The floating solar project at Chereh Dam is designed to harness solar energy while minimizing land use, making it an ideal solution for countries with limited land availability for solar farms. The project will utilize advanced floating solar technology, which allows solar panels to be mounted on the surface of the water, thereby reducing evaporation and maintaining cooler temperatures for the solar panels, which can enhance their efficiency.
Masdar's floating solar project is expected to produce approximately 300 gigawatt-hours (GWh) of electricity annually. This output is anticipated to power around 60,000 households in Malaysia, contributing to the country's goal of achieving 20% of its total electricity generation from renewable sources by 2025. The project aligns with Malaysia's commitment to sustainable development and its efforts to transition to a low-carbon economy.
Strategic Importance
The Chereh Dam floating solar project is not only significant for its size but also for its strategic importance in promoting renewable energy in Southeast Asia. The region has seen a growing interest in solar energy due to its abundant sunlight and the increasing need for sustainable energy solutions. By investing in floating solar technology, Malaysia is positioning itself as a leader in renewable energy within the region.
Furthermore, the project will provide an opportunity for knowledge transfer and capacity building in the renewable energy sector. As part of the project, Masdar aims to engage local communities and stakeholders, fostering a collaborative approach to renewable energy development in Malaysia.
Environmental Benefits
The environmental benefits of the floating solar project extend beyond just renewable energy generation. By utilizing the surface of the Chereh Dam, the project helps to mitigate land-use conflicts often associated with traditional solar farms. Additionally, the installation of solar panels on water bodies can reduce water evaporation, which is particularly beneficial in regions facing water scarcity.
Moreover, the floating solar installation is expected to have a minimal ecological footprint, as it will not disrupt the surrounding land or habitats. The project will also contribute to the reduction of greenhouse gas emissions, supporting Malaysia's commitments under the Paris Agreement to combat climate change.
Masdar’s Commitment to Renewable Energy
Masdar has been at the forefront of renewable energy development since its inception in 2006. The company has established a strong track record in various renewable energy projects around the globe, including solar, wind, and waste-to-energy initiatives. With a commitment to sustainability and innovation, Masdar aims to lead the transition to a cleaner energy future.
In recent years, Masdar has expanded its international footprint, establishing partnerships and projects in multiple countries, including the United States, Egypt, and India. The Chereh Dam floating solar project represents another step in Masdar's mission to promote sustainable energy solutions in emerging markets.
Future Prospects
The successful implementation of the Chereh Dam floating solar project could pave the way for similar initiatives across Southeast Asia. As countries in the region seek to diversify their energy sources and reduce carbon emissions, floating solar technology presents a viable solution that can be adapted to various water bodies, including reservoirs, lakes, and coastal areas.
In addition to the environmental and economic benefits, the project is likely to create job opportunities in the local community, contributing to economic growth and development. The collaboration between Masdar and TNB exemplifies the importance of public-private partnerships in advancing renewable energy projects and achieving national energy goals.
Conclusion
The signing of the Power Purchase Agreement for the 200 MW floating solar project at Chereh Dam marks a significant achievement for Masdar and Malaysia's renewable energy sector. This project not only demonstrates the potential of floating solar technology but also highlights the importance of collaboration in advancing sustainable energy solutions. As the project progresses, it will serve as a model for future renewable energy initiatives in Southeast Asia and beyond.
With the growing emphasis on sustainable development and climate action, the Chereh Dam floating solar project is poised to play a crucial role in shaping the future of energy in Malaysia and the region as a whole.
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