Malaysia’s Kerian Solar Kerian Solar to start up solar project in Malaysia. Bhd., a joint venture company between a subsidiary of French utility giant, ENGIE and TTL Energy Sdn Bhd, says that it has reached a significant milestone in the progress of the Large-Scale Solar 3 (LSS3) project in Kerian, Perak (also known as the Kerian Solar Project), having achieved financial closure for the development of a 100 megawatt (MWac) solar plant recently.
The senior debt facility from BNP Paribas Malaysia Berhad, MUFG Bank (Malaysia) Berhad and Sumitomo Mitsui Banking Corporation Malaysia Berhad has obtained a green loan certification for Kerian Solar.
As part of this joint venture, Kerian Solar has also signed an EPCC Contract with local solar energy solutions provider Ditrolic Solar and Supply Contract with ENGIE Solar ― ENGIE’s global engineering, procurement, and construction platform to support solar projects ― to begin construction of the project.
LSS3 is the third cycle of the Large-Scale Solar scheme introduced by the Suruhanjaya Tenaga Malaysia (National Energy Commission) to increase electricity generation from renewable energy, by developing nearly 500MW of large-scale solar projects. The project is scheduled for commercial operation in Q1 2022 under a 21-year Power Purchase Agreement with Tenaga Nasional Berhad (TNB).
Kerian Solar had previously signed a 21-year power purchase agreement (PPA) with utility Tenaga Nasional Bhd for the project, back in June 2020. Once completed, it will hold a total installed capacity of 136 MWp, reaping a carbon emission reduction of 157.2 tons of carbon dioxide (CO2) per year. The project is on track to reach its Commercial Operation Date (COD) in early 2022.
The LSS scheme was established on the back of the Malaysian government’s target of generating 20% of the country’s energy through renewable means by 2025. As of 2020, renewable energy comprises 8% of the country’s energy mix, of which 67% comes from solar energy.
“The Malaysian government has shown astute foresight by setting an impactful, yet realistic renewable energy target for the country back in 2018. As a company that is committed to accelerating the transition towards a carbon-neutral world, we are proud to be able to play a pivotal role in supporting the country’s renewables push through LSS3, working together to enable sustainable growth for Malaysia’s vibrant economy,” said Thomas Baudlot,
ENGIE Southeast Asia’s CEO.
“The 450 jobs we are creating in solar engineering and technology is the critical enabler to support the country in developing a workforce with skills relevant for the future,” he concluded.