Abu Dhabi clean energy company Masdar has started construction on its first project in Malaysia, set to be one of the largest floating solar developments in South-East Asia.
The 200MW Chereh Dam solar photovoltaic project in Parang state is being built by a consortium that also includes Malaysia's Citaglobal construction company and investment firm Tiza Global, Masdar said on Thursday.
The project's financing was finalised on Tuesday with about 580 million ringgit ($142.9 million) raised from three international lenders, Masdar said. Plans for the development were first unveiled last December, and at the time showed that the value of the project was about $208 million.
The Chereh project, which is poised to generate clean electricity to power the equivalent of 100,000 homes, will create about 1,500 jobs and is set to open up economic opportunities in Pahang, Masdar said.
The development combines Masdar’s expertise in floating solar projects, including its work on the 145MW Cirata project in Indonesia, with Citaglobal’s infrastructure and energy development capabilities, and Tiza's project development and local stakeholder engagement experience, Masdar said.
Masdar chief executive Mohamed Al Ramahi said it also emphasises the strategic importance of Malaysia and the broader South-East Asia region, as electricity demand rises, the potential for renewable energy grows and investments continue to flow.
"Chereh marks an important milestone in our long-term commitment to Malaysia and our expansion across Southeast Asia," he said.
"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."
Masdar, jointly owned by Taqa, Adnoc and Mubadala, has developed projects in various countries, with a combined capacity of more than 65GW.
Its entry into Malaysia follows previous moves in Asia.
The company signed agreements to develop power plants, including what was then South-East Asia's largest floating solar plant, in Indonesia, and to build renewable energy projects with a capacity of 1GW in the Philippines.
In August, Masdar launched its second battery energy storage system project in the UK, as the company continues to boost its presence there amid higher demand for clean energy.
In July, Masdar and ScottishPower completed a major construction stage at a $5.42 billion offshore wind farm project off the English coast, which is set to be one of the largest in the world.
The Chereh 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", said the Sultan of Pahang, Abdullah Ri'ayatuddin Al Mustafa Billah Shah.
