Masdar starts construction on 200MW solar energy project in Malaysia

Masdar, a clean energy company based in Abu Dhabi, has commenced construction on its inaugural project in Malaysia, marking a significant step in the development of floating solar energy in South-East Asia. The 200MW Chereh Dam solar photovoltaic project is set to become one of the largest of its kind in the region. This ambitious endeavor is being spearheaded by a consortium comprising Masdar, Citaglobal, a Malaysian construction firm, and Tiza Global, an investment company.

Financing for the project reached completion on Tuesday, with approximately 580 million ringgit ($142.9 million) sourced from three international lenders. The project's conceptualization was initially announced last December, revealing an estimated value of $208 million. Upon completion, the Chereh project is expected to produce clean electricity capable of powering around 100,000 homes, thereby generating around 1,500 jobs and stimulating economic opportunities in the Pahang region.

This undertaking represents a strategic collaboration between Masdar's expertise in floating solar projects, including work on the 145MW Cirata project in Indonesia, and the infrastructure and energy development capabilities of Citaglobal, as well as Tiza Global's experience in project development and engaging local stakeholders.

Masdar's CEO, Mohamed Al Ramahi, emphasized the importance of this project in Malaysia and the broader South-East Asia region, as electricity demand surges, renewable energy potential expands, and investments continue to pour into the area. He highlighted the milestone this represents in Masdar's ongoing commitment to Malaysia and its expansion across Southeast Asia.

By leveraging Masdar's global floating solar expertise and forging strong local partnerships, the company aims to bolster Malaysia's energy ambitions, create jobs, and foster new economic opportunities in Pahang. Masdar, a joint venture owned by Taqa, Adnoc, and Mubadala, has already made strides in various countries, boasting a combined capacity of over 65GW across its projects.

The company's expansion into Malaysia comes after previous endeavors in Asia, including the development of what was once South-East Asia's largest floating solar plant in Indonesia and the construction of a 1GW renewable energy project in the Philippines. In August, Masdar unveiled its second battery energy storage system project in the UK, underscoring its commitment to clean energy as demand for sustainable solutions rises.

Additionally, in July, Masdar and ScottishPower completed a major construction phase at a $5.42 billion offshore wind farm off England's coast, set to become one of the world's largest wind energy projects. This Chereh project embodies Masdar's dedication to utilizing natural resources responsibly to contribute to Malaysia's renewable energy goals while simultaneously providing opportunities for local communities and industry.

Sultan of Pahang, Abdullah Ri ayatuddin Al Mustafa Billah Shah, expressed his support for the project, praising Masdar's efforts to responsibly harness natural resources for Malaysia's renewable energy aspirations.