Asian renewables developer HEXA Renewables has signed an agreement to develop up to 1GW of hybrid solar photovoltaic projects in the southern tip of Peninsular Malaysia.
HEXA Renewables, a portfolio company of infrastructure investment firm I Squared Capital, signed the MoU with UEM Group Berhad (UEM), a wholly owned subsidiary and the green investment platform of Khazanah Nasional Berhad, and ITRAMAS Corporation (ITRAMAS).
The project is the first to be announced under Malaysia’s National Energy Transition Roadmap, which aims to achieve 70% of the country’s energy capacity to be sourced from renewables by 2050.
HEXA and UEM-ITRAMAS will collaborate on the planning, structuring, off-take arrangements, construction, and operation of the project.
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“I Squared Capital welcomes this agreement between HEXA and UEM-ITRAMAS to develop a large-scale, state-of-the-art solar project to support local demand for clean power,” said Harsh Agrawal, senior partner of I Squared Capital. “We will continue to seek out similar climate focused infrastructure projects to support the global energy transition, including in emerging markets and countries party to the Indo-Pacific Economic Framework, pursuant to our partnership with the DFC.”
The project follows an agreement between I Squared Capital’s agreement and the US International Development Finance Corporation (DFC) to partner in financing sustainable infrastructure projects in emerging markets, including those party to the Indo-Pacific Economic Framework (IPEF), such as Malaysia.
Khazanah Nasional Berhad, together with UEM Group, will also be spearheading an initiative through a new green investment platform announced by the Prime Minister of Malaysia, YAB Dato’ Seri Anwar Ibrahim.
The green investment platform aims to attract domestic and overseas investments to build businesses in green sectors such as renewable energy, energy storage, green building technology and energy efficiency, and e-mobility ecosystem.
Khazanah Managing Director, Dato’ Amirul Feisal Wan Zahir said: “Our vision is the development of a globally competitive green investment platform in the region, with a direct and active ownership approach. This will be carried out in phases with its initial near-term objective of creating green domestic champions in the country, followed by the medium-term aim of establishing a platform that is competitive regionally.”
