UEM LESTRA SECURES OFFTAKERS FOR ITS NETR HYBRID SOLAR POWER PLANT PROJECT UNDER CRESS
For Phase 1, UEM Lestra is set to invest some RM2.5 billion on the solar power plant
KUALA LUMPUR, 17 January 2025 - UEM Lestra Berhad (UEM Lestra), a wholly-owned subsidiary and green industries arm of UEM Group Berhad (UEM Group), announced today it has secured offtakers for its National Energy Transition Roadmap (NETR) one-gigawatt (1GW) hybrid solar power plant project under the Malaysian Government’s Corporate Renewable Energy Supply Scheme or CRESS.
Lestra Hexa JV Berhad (Lestra Hexa JV), a 51% subsidiary of UEM Lestra and its joint venture entity with I Squared Capital’s HEXA Renewables, has secured commitment from among others, Hong Kong-based ESR Group (ESR), an Asia Pacific’s leading real asset management group and parent company of Logos Infrastructure Holdco Pte Ltd, as its main offtakers.
The committed offtakers will be procuring green energy from the first phase of UEM Lestra-NETR 1GW hybrid solar power plant project set to be established across a 1,700-acre site in Segamat, Johor.
The first phase, which will see UEM Lestra investing close to RM2.5 billion, has 500MWac interconnection point and will feature an estimated 750MWp of solar capacity, supported by a Battery Energy Storage System (BESS), capable of generating over 1,000GWh of green energy per annum. The parties will work towards concluding the Bilateral Electricity Supply Contract in the coming months with a target to meet commercial operation date by end of 2027.
The exchange of document between the parties took place yesterday (16 January 2025), witnessed by YAB Dato’ Sri Haji Fadillah Haji Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation (PETRA) alongside PETRA’s Deputy Minister, YB Tuan Haji Akmal Nasrullah Mohd Nasir, its Secretary-General, Dato’ Haji Mohd Zaidi Mohd Karli and Deputy Secretary-General, Dato’ Mohamad Razif Haji Abd Mubin. Also present was Chief Executive Officer of Energy Commission, Dato' Ir. Ts. Abdul Razib Dawood and Datuk Amran Hafiz Affifudin Chairman of UEM Lestra and Managing Director of UEM Group.
Harman Faiz Habib Muhamad, CEO of UEM Lestra led the exchange of document with David Aboud, ESR’s Head of Malaysia.
This will be the first project undertaken under CRESS, which was launched in September 2024 by PETRA and implemented by the Energy Commission. The scheme seeks to provide corporate consumers with broader green electricity supply options, helping them achieve their environmental, social, and governance (ESG) commitments through third-party access to green electricity.
Harman Faiz said, “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 off-takers' 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,” added Harman.
Khazanah Nasional, parent company of UEM Group, supports Malaysia’s energy transition ambitions and net zero targets, through various energy transition projects and investments via its portfolio companies. Investments earmarked by UEM Group and UEM Lestra to spearhead these efforts has the ability to boost domestic direct investment, including the development of large-scale solar power plants through UEM Lestra as part of its commitment to support Malaysia’s energy transition targets.
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