TNB and IOI partner to develop 500 MW solar project in Malaysia

Tenaga Nasional Berhad (TNB) plans to invest up to RM424.4 million in a joint venture with IOI Corporation and a consortium of small and medium-sized enterprises (SMEs) to develop a 500 MW solar power project in Bahau, Negeri Sembilan, Malaysia. TNB Renewables (TRe), IOI Corporation subsidiary Luminous Aspect and CSP 500MW have signed a shareholders’ agreement to establish Bahau Energy Ventures, the project company. The facility will comprise a 500 MWac solar photovoltaic plant and a 250 MW/1,000 MWh battery energy storage system under Malaysia’s Corporate Renewable Energy Supply Scheme.

The project will be supported by a long-term renewable energy offtake agreement between TNB and Singapore-headquartered DayOne Data Centres. TRe will hold a 70 per cent stake in the joint venture, while Luminous Aspect and CSP will hold 25 per cent and 5 per cent, respectively. The venture will have maximum equity capitalisation of RM606.2 million, comprising contributions of RM424.4 million from TRe, RM151.5 million from Luminous Aspect and RM30.3 million from CSP, which represents a consortium of 12 SMEs.