Malaysia's UEM Group Bhd has inked a significant agreement for the development of a 500-MW hybrid solar park in its home country, in collaboration with renewables platform Blueleaf Energy and engineering firm ITRAMAS Corp Sdn Bhd.
This project marks the second initiative to materialize under an existing arrangement forged last summer, aiming to deploy 1 GW of hybrid solar power capacity within a renewable energy industrial park in Malaysia. The implementation will be facilitated through a joint venture, as confirmed by UEM Group on Wednesday.
Per the shareholder agreement, UEM's green energy arm, UEM Lestra, and Macquarie Asset Management's portfolio company, Blueleaf, will hold 51% and 49% stakes, respectively, in the newly established entity named Lestra Blueleaf JV Sdn Bhd. Furthermore, the partners have entered into a technical partner agreement with ITRAMAS to oversee technical services and manage the engineering, procurement, construction, and commissioning aspects of the project.
With the groundwork laid, the consortium aims to engage with the government to address the intricacies of the third-party access (TPA) framework, crucial for propelling the project into the execution phase.
UEM Group and ITRAMAS previously collaborated on the 1-GW solar hybrid project initiated last summer. Dato' Mohd Izani, Chairman of UEM Lestra, expressed satisfaction with the swift progress, stating, “In less than a year of us signing the MoU, we have agreed on all of the terms and signed all of the necessary agreements.”
