UEM Group Berhad through its wholly-owned subsidiary and green industry arm, UEM Lestra Berhad (UEM Lestra) has inked an agreement with Blueleaf Energy and ITRAMAS Corporation Sdn Bhd (ITRAMAS) for the development of a 500 MW hybrid solar power plant in Malaysia.
It is part of the larger 1 GW hybrid solar power plant flagship venture. The companies plan to work with the Malaysian government for the third-party access (TPA) framework, which is important to move the project to the execution phase.
Furthermore, a shareholders’ agreement has been finalised between UEM Lestra and Blueleaf Energy to establish a joint venture named Lestra Blueleaf JV Sdn Bhd, with 51 per cent ownership by UEM Lestra and the remaining 49 per cent by Blueleaf Energy.
Additionally, a technical partner agreement has been inked between Lestra Blueleaf JV and ITRAMAS, which will provide technical services in developing a complete engineering, procurement, construction, and commissioning package.
REGlobal’s Views: This project will be integrated with a renewable energy industrial park, which is expected to attract foreign manufacturers and suppliers across clean energy and EV space, as well as development of R&D facilities. Malaysia aims to reach 18.5 GW of renewable capacity by 2040 and the project will set an example for other large projects that will play a role for the country to keep up with the goals set in the National Energy Transition Roadmap. The project has been successful in attracting foreign investors like Blueleaf Energy and ITRAMAS’ existing partners, China Machinery Engineering Wuxi Co Ltd (CMECWUXI) and HEXA Renewables, showing increasing foreign investor confidence in Malaysia’s renewable energy sector.
