Norway-based Scatec Solar has secured $237m financing for three solar PV plants in Malaysia with combined capacity of 197MW.
The finance was raised through the issuance of Green SRI Sukuk (Islamic bond) of MYR1bn in nominal value of $237m.
Last December, Scatec Solar formed a consortium led by a local ITRAMAS and had signed three 21 year power purchase agreements (PPAs) with Malaysia’s electricity utility Tenaga Nasional Berhad (TNB).
Scatec Solar CEO Raymond Carlsen said: "We are very satisfied to reach this important milestone. Together with our partners, we have again demonstrated our wide-ranging expertise and we are now ready to build the largest solar energy portfolio in South East Asia."
The 197MW solar projects will be located in Merchang in the north-east, Jasin in the south and Gurun in the north-west of Peninsular Malaysia with an estimated investment of MYR1.235bn ($293m). Construction on these plants has already started and each of the plant will spread across more than 180 acres of land.
These solar plants could generate around 282,000MWh of clean electricity per year, while avoiding about 210,000 tons of carbon emissions annually, had the electricity been produced from a coal-fired plant.
Malaysian engineering company ITRAMAS is the lead sponsor of the three solar projects and signed the PPAs on behalf of the local consortium that includes two other Malaysian companies, MalTechPro and Cam Lite.
ITRAMAS group managing director Lee Choo Boo said: "This milestone marks a new beginning for Malaysia's renewable energy sector. The projects are envisaged to generate up to 3,000 local jobs and will generate electricity for up to 93,000 households per year.
"We appreciate the efforts made by Bank Negara Malaysia, the Securities Commission Malaysia and the World Bank Group in introducing the concept of the Green SRI Sukuk, as this made it possible to finance our project in a climate-friendly manner."
Last week, Scatec Solar and Statoil announced their plans to establish a 50:50 joint venture to build, own and operate large scale solar plants in Brazil.
Statoil acquired 40% stake in Scatec Solar’s existing 162MW Apodi project, which was awarded in an auction process held by ANEEL in November 2015. Total capex for the project is estimated to be $215m.
Image: Scatec Solar secures funds for construction of solar plants in Malaysia. Photo: Courtesy of worradmu/FreeDigitalPhotos.net.