Abu Dhabi Future Energy Company (Masdar), Citaglobal Berhad and TIZA Global have marked the start of construction of the 200-megawatt (MW) Chereh Dam Floating Solar PV Project with a groundbreaking ceremony in Pahang, Malaysia.

Developed through their project company, Chereh Solar Sdn Bhd, the project is expected to begin operations in 2028 and become one of Southeast Asia’s largest floating solar developments.

It is expected to generate enough clean electricity to power approximately 100,000 homes and create around 1,500 jobs during development and construction.

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

The ceremony was attended by Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, the Sultan of Pahang, and Wan Rosdy Wan Ismail, Chief Minister of Pahang, alongside senior representatives from the project partners.

Financial close was achieved on October 27, with approximately RM580 million ($143 million)secured from three international lenders.

The financing structure aligns project funding with future revenues while attracting international capital into Malaysia’s renewable energy sector and supporting long-term local economic participation.

Chereh Solar Sdn Bhd signed a 21-year power purchase agreement (PPA) with Malaysia’s national utility, Tenaga Nasional Berhad (TNB), in December 2025.

The agreement covers the sale of electricity generated by the project from commercial operations.

Chereh was awarded through Malaysia’s Large Scale Solar (LSS) Cycle 5+ programme, with the consortium submitting the lowest tariff bid in the floating solar category.

For Citaglobal, the investment expands its renewable power generation portfolio alongside its established infrastructure activities.

Chereh is a key component of the Group’s New Energy platform, which covers solar, hydropower and Bio-CNG initiatives.

For Masdar, the project marks its first investment in Malaysia and the inaugural development under its 10-gigawatt renewable energy roadmap agreed with the Malaysian Investment Development Authority (MIDA) in 2023.

The company is also conducting 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 the project’s development, construction and operations.

A Site Agreement has also been signed with Pahang Water & Energy Resources to support development.

By utilising an existing reservoir, the project will reduce the need for additional land-based solar sites.

It also supports Malaysia’s target of increasing renewable energy’s share of installed electricity-generation capacity to 35 per cent by 2030, with floating solar expected to make a significant contribution.

Al-Sultan 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 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.”

Tan Sri Dato' Sri (Dr.) Mohamad Norza Zakaria, Executive Chairman and President of Citaglobal Berhad and TIZA Global, 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.” -OGN/TradeArabia News Service