Malaysia’s Citaglobal and Abu Dhabi clean energy company Masdar have signed an initial agreement for the joint development of renewable energy projects worth 2 GW.
The projects will be located in Pahang on the east coast of Malaysia and will include clean energy technologies such as solar, battery energy storage, and wind, as stated by Masdar.
Mohamed Al Ramahi, chief executive of Masdar, said, “Masdar is excited to be partnering with Citaglobal Berhad and to be expanding our presence in the key South-East Asian market. We look forward to pioneering energy solutions to reduce emissions in Malaysia and the region.”
Malaysia has set a goal of renewable energy providing 31% of the nation’s energy needs by 2025 and 40% by 2035. The government has committed to raise renewable energy capacity to 70% by 2050, aligning with the country's net zero goals.
“By collaborating with a leading energy transition player, we will make faster progress towards our climate targets, besides building our long-term energy requirements in a responsible and cost-efficient manner,” said Mohamad Zakaria, president of Citaglobal.
Zakaria added that the agreement will also foster “potential” collaboration between Masdar and Citaglobal related to technology solutions and equipment supply outside of Malaysia, with a focus on Central Asia.
Masdar has a presence in South-east Asia, a region where notable growth in energy demand over the next few decades is expected.
In February, Masdar invested in Indonesia's Pertamina Geothermal Energy (PGE), marking its entry into the country’s geothermal energy sector, which is the largest after the US.
Last year, Masdar formed a joint venture with Jakarta-based Mitrabara to provide renewable energy solutions.
In 2020, the company set up a joint venture with PT PJBI, a subsidiary of Indonesia’s state electricity company, to develop the country’s first floating solar project, which is also one of the biggest in the world.
Established in 2006, Masdar has taken a leading role in the global green energy sector and has helped drive the nation’s economic diversification and climate action. It is active in about 40 countries and has invested or committed to invest in projects worth more than $30 billion.