KUALA LUMPUR, July 10 – Terengganu has taken another bold step in reinforcing its leadership in clean energy as the state government formalised a joint development agreement for a large-scale floating solar project at Kenyir Lake, with a minimum capacity of 1 gigawatt (GW) poised to become the largest in Malaysia and among the largest in Southeast Asia.

The agreement was signed between the Terengganu Inc Consortium, TNB Power Generation Sdn. Bhd. (TNB Genco), and Riyadh-based energy company ACWA Power in conjunction with the 46th ASEAN Summit held at the Kuala Lumpur Convention Centre (KLCC).

Terengganu Menteri Besar, Dato’ Seri Ir. Dr. Ahmad Samsuri Mokhtar, said the Floating Photovoltaic (FPV) project marks a major milestone in the nation’s renewable energy landscape while opening up significant opportunities in investment and green jobs.

“This project is in line with Terengganu’s aspiration to achieve 35 percent Renewable Energy (RE) share by 2025.

“We hope this collaboration will proceed smoothly and achieve its intended goals,” he said in a media statement.

The Heads of Terms (HoT) for the Joint Development Agreement (JDA) were exchanged in the presence of Malaysia’s Deputy Prime Minister, Dato’ Sri Fadillah Yusof, and Minister of Investment, Trade and Industry (MITI), Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.

Also present were Saudi Arabia’s Deputy Minister for International Affairs at the Ministry of Investment, Sara Al Sayed, and Deputy Foreign Minister for Economic and Development Affairs, Abdullah Zarah.

The floating solar technology not only provides clean energy, but also offers additional advantages such as reducing water evaporation and enabling more efficient land use, making it one of the most sustainable energy development approaches.

President and Group CEO of Terengganu Inc, Dato’ Burhanuddin Hilmi Mohamed, described the agreement as a strategic breakthrough in Malaysia’s renewable energy journey.

“With a minimum capacity of 1GW, this floating solar installation will significantly contribute to the national RE target while showcasing an innovative and practical clean energy solution.

“This tripartite partnership will strengthen Terengganu’s position as a regional hub for floating solar technology and contribute meaningfully to the national net-zero goal by 2050,” he said.

He added that the collaboration reflects Terengganu’s readiness to lead the green transformation, proving that the state is no longer solely reliant on petroleum but is actively embracing a diversified and sustainable energy future.