UEM Group Berhad, through its green industry subsidiary UEM Lestra Berhad, has achieved significant progress in the development of a one-gigawatt (1GW) hybrid solar power plant, a key project under Malaysia’s National Energy Transition Roadmap (NETR). The project, initially announced by the government in July 2023, involves collaboration with HEXA Renewables Malaysia and ITRAMAS Corporation. Following a Memorandum of Understanding signed in July, the companies have finalized agreements to develop the first 500-megawatt hybrid solar power plant in Segamat, Johor.
The agreements include a shareholders agreement between UEM Lestra and HEXA Renewables to form a joint venture company, Lestra Hexa JV Sdn Bhd, with 51% ownership by UEM Lestra and 49% by HEXA Renewables. Additionally, a technical partner agreement has been established between Lestra Hexa JV and ITRAMAS, Malaysia’s largest vertically integrated solar plant developer, for Engineering, Procurement, Construction, and Commissioning (EPCC) services.
Dato’ Mohd Izani Ghani, Chairman and Managing Director of UEM Group, expressed satisfaction with the progress, stating, “We’re off to a good start in realizing this strategic and high-value national flagship energy transition project.” He added that positive engagements with potential off-takers for the first 500MW solar power plant are underway, and details will be finalized in the coming months.
Discussions for the remaining 500MW are ongoing, with an update expected in the near future. Vince Choi, CEO of HEXA Renewables, expressed excitement about reaching a significant milestone and emphasized the project’s potential to make Malaysia the renewable energy hub of Southeast Asia.
Lee Choo Boo, Group Managing Director of ITRAMAS, highlighted the project’s progress and its impact on Malaysia’s energy landscape. He emphasized the importance of the Third Party Access (TPA) framework and engagements with potential off-takers in shaping the project’s immediate impact. The collaboration aims to make a substantial contribution to Malaysia’s renewable energy goals.