It’s been a big couple of months for Scatec Solar, with the signing of significant power purchase agreements (PPAs) in Brazil, Nigeria, and Mozambique, and now the signing of a partnership to develop 200 MW of solar in Malaysia. With this substantial combined capacity, the three plants will be the largest single solar energy portfolio in South East Asia.
The Norwegian company will join forces with a local consortium, led by lighting and traffic management and construction engineering company ItraMAS, alongside Maltech and Cam Lite. The consortium has already signed three separate 21-year PPAs with utility Tenaga Nasional Berhad (TNB) for the energy produced at the plants, which saves Scatec the headache of securing the PPAs itself, and must have been a major factor in the company’s decision to join the projects.
“This is a significant achievement for Malaysia and the solar industry in the region as these projects will help develop local supply chains and uplift local communities,” gleamed ItraMAS CEO Choo Boo Lee.
Almost USD 300 million is expected to be invested in the three solar plants, which will have a combined capacity of close to 200 MW. Malaysian bank CIMB will arrange the debt financing for the three projects, while Scatec said that it expects to invest USD 60 million through preference shares partly convertible to a 49% equity ownership in the projects. On top of that, Scatec Solar will be acting as the EPC on the projects.
“This is a landmark opportunity to bring our wide-ranging expertise to realize the larger solar energy portfolio in South East Asia,” commented Scatec Solar CEO Raymond Carlsen. “For Scatec Solar and our partners, this is a stepping stone to enter one of the most dynamic and fast growing regions in the world.”
It is all part of a global strategy from Scatec, as the company is targeting 1.3 GW to 1.5 GW of solar projects to be in operation and under construction by the end of 2018.