European producer Scatec Solar has partnered with a consortium led by Malaysian holding company ItraMAS to develop 200MW photovoltaic (PV) projects in Malaysia worth approximately $300m.
The consortium has signed three 21-year power purchase agreements (PPA) with Malaysia's largest electricity utility, Tenaga Nasional Berhad (TNB).
Under the terms of the PPAs, the new partnership will develop three solar projects with a total power generation capacity of 200MW.
Scatec Solar's CEO Raymond Carlsen said: “This is a landmark opportunity to bring our wide-ranging expertise to realise the largest solar energy portfolio in South East Asia.
“For Scatec Solar and our partners, this is a stepping stone to enter one of the most dynamic and fast growing regions of the world.”
ItraMAS' chief executive officer (CEO) Choo Boo Lee added: “This is a significant achievement for Malaysia and the solar industry in the region as these projects will help develop local supply chains and uplift local communities.”
Headquartered in Kuala Lumpur, ItraMAS is the lead sponsor of the three solar projects. The three PV farms are located in Merchang in the north, Jasin in the south, and Gurun in the west of Peninsular Malaysia. They span over an area of more than 200 acres each.
Scatec Solar expects to invest approximately $60m through preference shares, partly convertible to a 49% equity ownership, in the three projects. The PPAs were signed on behalf of the local consortium, which includes two other companies from Malaysia, Maltech, and Cam Lite.
Expected to produce 285,000MWh of electricity every year, the three solar plants will be able to reduce 210,000t of carbon emissions annually.
Malaysian retail banking company CIMB will be responsible for arranging the non-recourse project debt financing for the three PV projects.