Malaysian IPP to expand solar portfolio with new acquisitions

Malakoff Corporation Berhad, a Kuala Lumpur-based power company, has signed a conditional share sale and purchase agreement with Malaysian engineering company Zelleco Engineering to acquire two companies.

Under the terms of the agreement, Malakoff will acquire more than 22.3 million ordinary shares in solar developer ZEC Solar, representing 51% of its total equity. It will also purchase 49,000 ordinary shares in TJZ Suria, representing 49% of its total equity. Malaysian media reports suggest that the deal could be worth MYR 27 million ($5.76 million).

Malakoff CEO and Managing Director Encik Anwar Syahrin Abdul Ajib said the acquisition will add an additional 15 MW of solar capacity to the company’s portfolio, bringing its total installed renewables capacity to 168 MW. 

ZEC Solar owns and operates a 29 MW solar facility in Kota Tinggi, southern Malaysia, with a 21-year power purchase agreement that is effective until 2040.

“This expansion will significantly enhance Malakoff's technical capabilities and provide a reference plant to meet the requirements of future large-scale solar bidding exercises, both domestically and internationally,” Ajib said. “It is testament to our commitment towards contributing to the nation’s target of achieving net-zero emissions as early as 2050 and increasing renewable energy capacity to 70% within the same period, fostering a greener future.”

In October 2023, Malakoff signed an agreement with MMC Group to provide 500 MW of solar in Malaysia. The country’s cumulative PV installations stood at 1933 MW at the end of 2023, according to figures from the International Renewable Energy Agency (IRENA).