June 5, 2024

A 500-megawatt (MW) hybrid solar power project in Malaysia

solar power seems to be game upgraded in Malaysia with a hybrid solar plant in Johor that has a capacity of 500MW. The project involves UEM Lestari Berhad, a subsidiary of UEM Group Berhad, Blueleaf Energy and ITRAMAS Corporation Sdn Bhd.

This undertaking signifies a breakthrough in the country’s drive towards sustainable energy while consistent with National Energy Transition Roadmap (NETR) goals.

Major Milestone for Malaysia’s Renewable Energy Sector


The future of Malaysia’s energy lies in solar power which is clear from UEM Group’s recent announcement. The company signed a shareholders’ agreement to establish a 500 MW hybrid solar power project under the management of Khazanah Nasional Berhad.

This hybrid facility will incorporate solar panels and battery storage systems for effective energy production and consumption.

In less than a year of MoU signing, we have agreed on all terms and signed the necessary agreements. This proves how committed everyone is to achieving the 1GW solar hybrid power plant project which is quite ambitious in itself.

These are the words said by Datuk Mohd Izani Ghani who happens to be the Managing Director at UEM Group as well as the Chairman of UEM.

Solar power development is being driven forward via strategic partnerships. Under the agreement, UEM Lestra will have a 51% stake in a joint venture firm called Lestra Blueleaf JV Sdn Bhd and Blueleaf Energy will have 49%.

This venture is going to work with ITRAMAS which will provide engineering, procurement, construction, and commissioning (EPCC) essential technical services for the project. The fact that both local and foreign companies are involved shows how different players are teaming up strategically to advance Malaysia’s energy transition agenda.

Malaysia’s Energy Transition


The Malaysian government is committed to utilizing solar power as part of their ambitions for cleaner energy. The solar power venture which has an output of 500MW will be among several facilities within a project involving 1GW ‘net energy metering’ (NEAR) hybrid solar systems across the nation that seeks to enhance Malaysia’s renewable energy mix.

They intend to have 40% of their energy coming from renewable sources by 2035 and increase this to 70% by 2050.

In a bid to achieve these goals, the authorities hope this initiative will soak up lots of sunbeams while also being an example in cutting down on greenhouse gases emissions as well as caring for our earth through sustainable development practices.

Hybrid solar power projects like the one in Johor hold the potential of controlling and possibly reducing electricity prices for good.

No specific details have been given concerning the impact on individual consumer expenses, but such programs usually have competitive Power Purchase Agreement (PPA) rates pegged at between MYR 0.1768 to 0.1970 per kWh which is about USD 0.0419 to 0. 0466.When solar energy takes up more of the total power generated, it not only means sustainability but also economic gains to the consumers

Strong backing is needed for solar power projects hence the partnership is targeted at finalizing the third-party access (TPA) framework which is essential for the implementation phase of this project. Governmental encouragement with its regulations support is necessary for moving forward with such endeavors.

According to the wide-ranging approach towards energy in Malaysia, there is no other way but to push on with them.

The 500 MW hybrid solar power plant project in Johor shows that solar power is vital in Malaysia’s renewable energy sector. Involving both local and foreign bodies, Malaysia is on the way to a sustainable future of energy which is also economically practical.

Should this project succeed, it can be copied by other countries that want to switch to using renewable sources of energy.


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