"source" Signed an agreement to develop the largest floating solar power plant in Southeast Asia
ABU DHABI, December 23 / WAM / Abu Dhabi Future Energy Company “Masdar”, the global leader in the field of clean energy, announced the signing of a power purchase agreement to develop its first project in Malaysia, which is a floating solar photovoltaic plant with a capacity of 200 MW, which will be implemented at the Shireh Dam in the state of Pahang, Malaysia.
The project will be developed by a consortium led by Masdar, in cooperation with the Malaysian companies SITA Global and TESA Global.
A power purchase agreement was signed with the Malaysian national electricity utility company, Tenaga Nasional Berhad.
When commissioned, the 200 MW Shire Dam Solar Power Plant will become the largest floating solar project in Southeast Asia.
The station extends over an area of approximately 950 acres, and its maximum production capacity will exceed 300 MW at peak (200 MW alternating current), which is enough to supply more than 100,000 homes with electricity in Malaysia.
The value of the project is estimated at more than 850 million Malaysian ringgit (208 million US dollars).
This investment will contribute to strengthening Masdar’s position as a major partner that supports Malaysia’s efforts to accelerate a qualitative shift in the energy sector.
Malaysia has set clear goals to raise the proportion of renewable energy within the national energy mix to 35% by 2030, and floating solar energy is expected to play a pivotal role in achieving these goals.
Mohammed Jameel Al Ramahi, CEO of Masdar, said on this occasion that this prominent project represents the largest floating solar energy project developed by Masdar in the world and its first project in Malaysia.
He pointed out that the project reflects Masdar’s experience in the field of floating solar energy systems, and its distinguished position as a reliable partner in the clean energy sector in the region. He explained that, relying on Masdar’s global experience in implementing utility-level projects, it will be able to provide clean, low-cost energy to the Malaysian people, and he looks forward to cooperating with SITA Global and TESA Global and the government of Malaysia to contribute to implementing the ambitious roadmap for renewable energy in the country.
For his part, Dr. Mohamed Norza Zakaria, Executive Chairman and President of SITA Global Berhad, said that this project reflects SITA Global’s role as a long-term Malaysian partner in developing infrastructure for the sustainable energy sector.
He added that by combining Masdar’s global experience with SITA Global’s distinguished capabilities in implementing projects at the local level and its deep understanding of the institutional framework, this cooperation gives us confidence in implementing the “Chirih” floating solar project in accordance with the highest international standards, which contributes to enhancing energy security in Malaysia and supporting the resilience of its economy in the long term.
The bid to implement the project was awarded following a competitive bidding process held under Cycle (5+) of Malaysia’s Large-Scale Solar Program, where Masdar’s global network and supply chain partnerships played a key role in the consortium delivering the lowest cost (L1) price in the floating solar category.
This win reflects Masdar’s experience in developing floating solar PV plants in the region, including the 145 MW Shirata floating solar PV plant located in West Java province, Indonesia.
The Shireh floating solar power plant represents the first project in plans to develop 10 GW renewable energy projects in Malaysia, which were agreed upon between Masdar and the Malaysian Investment Development Authority in 2023.
Masdar is currently conducting a feasibility study for a landmark floating solar project in the Murom Dam area of Sarawak, in cooperation with Sarawak Energy and Gentari.
This project is expected to enhance Malaysia’s capacity to produce renewable energy and support its national strategies, including the National Roadmap for Energy Sector Transformation and the New Industrial Plan 2030.
Masdar is keen to cooperate closely with Malaysian authorities and local stakeholders during the development, construction and operation stages of this project.
Partnerships, such as the agreement signed with Pahang Water Resources and Energy Company, will contribute to ensuring the efficient completion of the project, enhancing local community participation, and ensuring the sustainability of the project after the start of commercial operations, reflecting its role as one of the sustainable national assets.
Advanced technologies in the field of floating solar energy will be employed in this project, and it is designed to match the unique shape and characteristics of the Shireh Dam, enhancing performance, flexibility and operating efficiency in the long term.
The project will be financed according to a non-recourse formula, with the participation of international lenders, which reflects the market’s confidence in the project and its components.
Floating solar PV plants provide a land-efficient and scalable solution, and are particularly suitable for water-rich and highly populated countries such as Malaysia.
These systems contribute to enhancing the efficiency of energy production thanks to the natural cooling resulting from water, as well as reducing water evaporation rates and preserving fresh water reserves.
With a growing global project portfolio spread across more than 40 countries, and an ambitious goal of increasing the total production capacity of its clean energy portfolio to 100 gigawatts by 2030, Masdar continues its vital and active role in developing scalable and commercially viable clean energy projects that are in line with national development goals.
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