KUALA LUMPUR: Malaysian clean energy player Solarvest Holdings Bhd has entered into a Joint Investment Framework Agreement with Brookfield, a Canadian investment firm, to develop, construct and operate at least 1.5 gigawatts (GW) of utility-scale solar and battery energy storage projects in Malaysia, with an estimated investment value of over RM5 billion.
Solarvest executive director and group CEO Datuk Davis Chong Chun Shiong said the collaboration will accelerate Malaysia’s decarbonisation agenda in line with the National Energy Transition Roadmap.
“As we planned, at least 1.5 gigawatts will be committed by both parties over the next three to five years,” he said at a press conference today.
Based on the cost benchmark of RM3.5 million per megawatt, the planned 1.5GW portfolio would translate into a total investment value of around RM5.25 billion.
Chong said that for each project under the partnership, a special purpose vehicle (SPV) will be established, with Solarvest holding 51% and Brookfield 49%.
Funding is expected to be primarily debt-financed, with the balance raised through equity contributions by both parties.
Chong said the partnership is specifically designed for deployment under the Corporate Renewable Energy Supply Scheme (Cress) to tap into surging corporate demand for green power. “The market is open and demand for Cress is starting right now. And we do expect over the next three to five years that demand will progressively grow.”
He added that Solarvest remains on track to reach at least RM3 billion in order book by the end of the financial year, excluding the Brookfield collaboration.
“The current order book is RM1.2 billion as far as up to date today but we do have a couple of contracts that we are exploring. That and LSS5 make up our order book into RM2 billion. Then with the recent 470-megawatt project with Malakoff, that will be one of the EPCC revenue and order book that we are expecting to add in as well. So that will complete the target of RM3 billion in total,” Chong said.
Brookfield owns and operates one of the world’s largest, most diversified portfolios of renewable power and transition assets with more than 270GW of operational and development capacity.
The partnership is Brookfield’s first investment in Malaysia via its Catalytic Transition Fund, the firm’s primary vehicle to accelerate decarbonisation in emerging markets.
Malaysia was chosen due to its standing as one of Southeast Asia’s most attractive renewable energy markets, underpinned by robust demand fundamentals and a supportive policy framework.
Under the partnership, Solarvest will contribute its local development expertise and execution track record, having delivered more than 2.3GW of solar photovoltaic across completed and ongoing projects in Malaysia. Brookfield brings capital strength, low cost of funds and global corporate offtake relationships.
Brookfield’s head of renewable power and transition for Asia Pacific, Daniel Cheng, said Malaysia is emerging as a regional leader in clean energy, supported by ambitious national targets and surging demand from utilities and corporates, particularly data centres and semiconductor manufacturers.
“Brookfield is committed to deploying significant capital into Malaysia where these strong market fundamentals align with its capabilities to deliver power and decarbonisation solutions to large corporates, hyperscalers and other key customers globally,” he said in a separate statement.
