KUALA LUMPUR: IOI Corp Bhd’s wholly owned Luminous Aspect Sdn Bhd has partnered with Tenaga Nasional Bhd’s (TNB) subsidiary to develop a 500-megawatt (MW) solar project in Negri Sembilan.
The project involves a 500MWac solar photovoltaic facility integrated with a 250MW/1,000MWh battery energy storage system.
IOI said Luminous had entered into a joint venture and shareholders’ agreement with TNB Renewables Sdn Bhd (TRe) and CSP 500MW Sdn Bhd today.
The project marks IOI’s first large-scale renewable energy development under the Corporate Renewable Energy Supply Scheme.
TRe will hold a 70 per cent stake in Bahau Energy Ventures Sdn Bhd, the renewable energy development company.
Luminous and the consortium of small and medium enterprises will hold 25 per cent and five per cent respectively.
The development will be undertaken on 526.09 hectares of land in Bahau following a long-term land lease agreement between the development company and IOI.
The project will be supported by TNB’s long-term renewable energy offtake agreement with Singapore-based DayOne Data Centres Ltd.
DayOne is expected to procure up to 500MWac of renewable energy over 21 years for its data centre operations in Malaysia.
IOI group managing director and chief executive Datuk Lee Yeow Chor said the partnership will provide the group with an opportunity to participate in one of the country’s largest solar and energy storage projects.
“Supported by an offtake agreement with a reputable data centre company, we are optimistic that the project will yield stable long-term recurring income for IOI, both as a shareholder in the RED and as the lessor of the project site,” he said.
He said the partnership also aligns with IOI’s five-year strategic roadmap (2025-2029) to expand its renewable energy business portfolio.
The group’s renewable energy initiatives include palm wood manufacturing and the processing of paper pulp from empty fruit bunch fibres.