UEM Lestra, a subsidiary of the UEM Group, has finalised agreements with offtakers for its National Energy Transition Roadmap (NETR) 1GW hybrid solar power plant project in Malaysia.
The project is taking place under the Malaysian government’s Corporate Renewable Energy Supply Scheme (CRESS).
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Lestra Hexa JV, in collaboration with I Squared Capital’s HEXA Renewables, has obtained commitments from notable companies including ESR Group.
These entities will procure green energy from the first phase of the 1700-acre project, to be located in Segamat, Johor.
The initial phase involves an investment of RM2.5bn ($556.3m) and includes a 500 megawatts alternating current interconnection point.
It is expected to have a solar capacity of 750 megawatts peak and will be supported by a battery energy storage system (BESS), generating more than 1,000 gigawatt hours of green energy annually.
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By GlobalDataThe conclusion of the bilateral electricity supply contract is anticipated in the upcoming months, aiming for commercial operation by the end of 2027.
UEM Lestra CEO Harman Faiz Habib Muhamad stated: “The launch of the CRESS programme by the government and our NETR hybrid solar power plant project are evidence of Malaysia’s steadfast commitment to sustainable energy solutions. These pivotal initiatives not only address offtakers’ demands but also pave the way for a sustainable future for Malaysia through renewable energy.
“The involvement of ESR will further enhance the viability of this national endeavour. We are eager to collaborate with all involved parties, including the Johor state government, to ensure the successful implementation of this ambitious project, which has the potential to attract more foreign direct investment, create quality jobs, and foster economic growth, while simultaneously advance Malaysia’s renewable energy landscape”.
The formalities were conducted on 16 January 2025, attended by government officials including Deputy Prime Minister YAB Dato’ Sri Haji Fadillah Haji Yusof and other senior figures from PETRA (the country’s Energy Transition and Water Transformation Ministry) and the Energy Commission.
Harman Faiz Habib Muhamad and ESR’s head of Malaysia David Aboud led the document exchange.
The venture is the first under CRESS introduced by PETRA in September 2024 to offer corporate consumers more options for green electricity supply and help them meet ESG goals through third-party access to renewable energy.
Khazanah Nasional, UEM Group’s parent company, is committed to supporting Malaysia’s energy transition and net-zero objectives through investments in projects such as UEM Lestra’s large-scale solar power plants.
