The partnership marks the Norwegian global solar power producer’s entry in the Malaysian solar energy market.
The two entities will invest nearly $300m in the solar projects.
ItraMAS-led consortium has signed 21-year power purchase agreements (PPAs) with Tenaga Nasional Berhad (TNB), Malaysia’s largest electricity utility.
The three photovoltaic solar parks will come up at Merchang, Jasin and Gurun in Peninsular Malaysia, with each of them spanning over 200 acres of land.
Scatec Solar is likely to invest around $60m in the projects for a 49% ownership stake.
The company expects the investment to facilitate long term stable cash flows and help in meeting its investment hurdle rates.
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.”
The Norwegian solar power firm will take up an integrated role in the projects, including undertaking turnkey engineering, procurement and construction (EPC) works.
Its partner, the Kuala Lumpur based ItraMAS, which is into LED lighting and traffic management and construction engineering, will be the primary sponsor of the three solar projects.
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''.
Once operational, the three solar projects are likely to deliver 285,000 MWh of clean solar electricity annually while cutting down 210,000 tons of carbon emissions per year.
Malaysian commercial bank CIMB will arrange the non-recourse debt financing for the projects.
Image: Scatec Solar and an ItraMAS-led consortium will build three solar plants in Malaysia. Photo: Courtesy of franky242/FreeDigitalPhotos.net.
