65 MW project connects to the grid in Malaysia

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Scatec Solar today announced that it has connected the 65 MW Jasin Solar Plant to the grid in southwestern peninsular Malaysia.

The project is the second undertaken by the Norwegian developer as part of an agreement signed in December 2016 for three PV projects spread across the Southeast Asian nation, totalling 197 MW. The projects are being developed as part of a consortium led by local engineering firm ITRAMAS, and will produce electricity for Malaysia’s grid under a 21-year PPA with utility Tenaga Nasional Berhad.

Total investment for the three projects was around MYR 1,235 million ($296 million), the bulk of which was raised by a MYR 1,000 million green bond issued by Scatec Solar in October 2017. Scatec Solar itself invested MYR 251 million in the projects through preferential shares partly convertible to 49% equity ownership. The company will also provide operations and maintenance services to all three projects.

The first of the three projects, the Gurun Plant in the northwestern part of peninsular Malaysia, reached commercial operations back in January, and Scatec Solar has also closed financing for an additional 47 MW project, as part of a consortium with U.S./Malaysia-based asset management firm Fumase. The completion of the Jasin project brings Scatec Solar’s global PV project portfolio to 714 MW in operation and a further 941 MW under construction.

Malaysia has set itself a target of generating 50% of its electricity from renewables by 2050, and recently launched the third round of its Large Scale Solar tender program, in which it expects to allocate 500 MW of new PV projects.

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