TotalEnergies, together with MK Land Holdings Berhad, a diversified group in Malaysia, has announced the financial close for its 30 MWac (approx. 50 MWp) solar power plant located in Kulim, Kedah.
Awarded by the Malaysian Energy Commission in August 2023 under the Corporate Green Power Program (CGPP) to TotalEnergies (49 percent) and Solar Citra Sdn. Bhd. (51 percent) (subsidiary of M K Land), the project will begin construction following the issuance of the notice to proceed, TotalEnergies said in a statement.
The entire output of around 1.5 TWh of electricity will be sold under 21-year long-term power purchase agreements (PPAs) to major technology and industrial players in Malaysia.
This reflects the increasing demand from these customers for sustainably sourced electricity, underscoring the project’s strategic importance and its role in advancing the country’s clean-energy agenda.
The solar plant will comprise approximately 80,000 photovoltaic panels installed across 115 acres and will include the development of a new 132 kV loop-in-loop-out (LILO) substation, enhancing Malaysia’s grid interconnection network.
“We are pleased to reach this new milestone for our solar project in Malaysia. By leveraging our extensive upstream footprint in the country and our upcoming 50/50 joint venture with Masdar in Asia, we aim to contribute to the development of renewables to support the country’s decarbonization objectives,
“This project also reflects TotalEnergies’ strategy to supply major technology and industrial customers with tailored renewable energy solutions,” said Gregory Thomassin, Head of Business Development, Renewables APAC, TotalEnergies.
The project financing facility of approximately MYR 145 million (about $37 million) was arranged with BNP Paribas Malaysia Berhad as the sole mandated lender.