Bloomberg filepix for illustration purpose only.
KUALA LUMPUR (Jan 17): UEM Lestra Bhd, the green investment arm of Khazanah Nasional Bhd, said it will invest some RM2.5 billion for the first phase of a solar project, and has secured offtakers for the power plant in Johor.
The first phase will have an estimated 750-megawatt peak (MWp) capacity, supported by a battery energy storage system, UEM Lestra said in a statement. Hong Kong-based real estate firm ESR Group Ltd is among the offtakers for the plant in Segamat, it noted.
“The parties will work towards concluding the bilateral electricity supply contract in the coming months, with a target to meet commercial operation date by end of 2027,” UEM Lestra said.
Located on a site sprawling 1,700-acre in Segamat, the hybrid solar plant is one of the flagship initiatives of the National Energy Transition Roadmap. The project is also the first under the government’s Corporate Renewable Energy Supply Scheme, or CRESS, launched in September 2024.
The scheme provides corporate consumers with broader green electricity supply options through third-party access.
“These initiatives not only address offtakers’ demands but also pave the way for a sustainable future for Malaysia through renewable energy,” said Harman Faiz Habib Muhamad, chief executive officer of UEM Lestra. “The involvement of ESR will further enhance the viability of this national endeavour.”
UEM Lestra — a unit of UEM Group Bhd, which in turn is wholly owned by Khazanah — had earlier set up a 51:49 joint venture with US-based I Squared Capital’s HEXA Renewables for the project.