KUALA LUMPUR (Oct 16): Lestari Tenaga Hijau Sdn Bhd is planning to jointly develop a one-gigawatt (GW) solar park project in Kuala Ketil, Kedah, with China Energy International Group CEIG (M) Sdn Bhd.

The two parties have signed a memorandum of understanding (MOU) to collaborate on the project, which requires an estimated investment of RM3.5 billion. Under the MOU, Lestari Tenaga Hijau will serve as the local lead developer and primary investor, while China Energy International Group will contribute its engineering and large-scale solar technology expertise.

The renewable energy developer also signed a separate joint collaboration agreement with Kester Sdn Bhd, who will assist in securing state-level approvals and facilitating local coordination for the project.

The agreements were signed on Thursday in conjunction with the International Greentech & Eco Products Exhibition and Conference Malaysia (IGEM) 2025, according to a statement by Lestari Tenaga Hijau.

The Kuala Ketil Solar Park will be built on approximately 2,000 acres of land. It is expected to supply clean electricity to over 500,000 households and reduce up to 1.2 million tonnes of carbon emissions annually. The project is also expected to create over 2,000 jobs during its construction and operational phases.

Lestari Tenaga Hijau CEO Ahmad Joahari Abu Bakar said the initiative underscores Malaysia’s shift towards a low-carbon future.  Lestari Tenaga Hijau is the renewable energy arm of Lestari Group and focuses on the development, investment, and operation of solar parks and green energy infrastructure across Malaysia.

“Today’s event not only marks the beginning of a major energy project, but also represents a tangible step in accelerating Malaysia’s transition towards a green economy,” he said. “We are proud to collaborate with our international partners in building a sustainable energy future for the nation," Ahmad Joahari said.

China Energy International managing director Ding Qian hailed the project as a milestone for green energy cooperation between Malaysia and China.

“As a global leader in renewable energy, CEIG is committed to bringing the latest technologies and expertise to Malaysia,” he said.