The company has joined a local ItraMAS-led consortium that will initially invest $300m in the three projects.
Scatec Solar plans to invest $60m via preference shares that will be partly convertible to a 49% equity ownership in three projects situated in Merchang in the north, Jasin in the south and Gurun in the west of Peninsular Malaysia.
The company has agreed to serve as the engineering, procurement and construction (EPC) contractor.
The projects are expected to generate about 285,000MWh of electricity per year, and reduce 210,000 tons of carbon emissions.
Malaysian commercial bank CIMB will be providing non-recourse project debt financing for the three projects, have 21-year power purchase agreements with local electric utility Tenaga Nasional Berhad (TNB).
Scatec Solar CEO Raymond Carlsen said: "This is a landmark opportunity to bring our wide-ranging expertise to realize the largest solar energy portfolio in South East Asia.
“For Scatec Solar and our partners, this is a stepping stone to enter one of the most dynamic and fast growing regions of the world.''
ItraMAS CEO Choo Boo Lee said: ''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.''
Image: Scatec Solar to develop three solar PV projects in Malaysia. Photo: Courtesy of Pixomar/FreeDigitalPhotos.net.
