Masdar signs agreement to advance development of 10GW of clean energy projects in Malaysia

Projects will include ground, rooftop and floating solar power plants

Transitioning to renewable energy will save Malaysia between $9 billion and $13 billion annually by 2050, the International Renewable Energy Agency has said. Bloomberg

Abu Dhabi clean energy company Masdar has signed an implementation road map to advance the development of 10 gigawatts of renewable energy projects in Malaysia.

The projects will include ground-mounted, rooftop and floating solar power plants, onshore wind farms and battery energy storage systems, the company said on Friday.

“As we begin Cop28, Masdar is spearheading the UAE’s endeavours to help achieve a just and inclusive energy transition for countries around the world,” said Dr Sultan Al Jaber, Cop28 President.

“The signing represents an important progression in the partnership between the UAE and Malaysia in the development of renewable energy projects,” said Dr Al Jaber, who is also the UAE Minister of Industry and Advanced Technology and chairman of Masdar.

The road map is part of an $8 billion renewable energy agreement signed by Masdar and the Malaysian Investment Development Authority(Mida) in October.

Masdar, which is active in more than 40 countries, aims to expand its capacity to at least 100 gigawatts of renewable energy by the end of the decade. It is also aiming for green hydrogen production of one million tonnes a year by 2030.

“Our strategic collaboration with Masdar marks a significant stride towards the realisation of Malaysia's sustainable energy ambitions,” said Wira Rahman, chief executive of Mida.

“This aligns with the Malaysian government's resolute commitment to achieving the Sustainable Development Goals 2030 and embracing the net zero 2050 vision."

The country aims for renewable energy to supply 31 per cent of its power requirements by 2025 and 40 per cent by 2035, increasing to 70 per cent by 2050.

Transitioning to renewable energy will save Malaysia between $9 billion and $13 billion annually by 2050 in avoided energy, climate and health costs, the International Renewable Energy Agency has said.

South-East Asia is a key investment market for Masdar. The company has developed the region’s largest floating solar facility in Indonesia - the 145 megawatt Cirata Floating solar plant, which is expected to generate enough electricity to power 50,000 homes.

This year, Masdar entered the geothermal energy sector through an investment in Indonesia’s Pertamina Geothermal Energy. Masdar is considering “transformative” acquisitions to expand its footprint in the US and Europe, according to chief operating officer Abdulaziz Alobaidli.

The company is actively screening the market for acquisitions, as well as greenfield and brownfield projects and opportunities to support small renewable energy developers, Mr Alobaidli told The National last month.