UEM Lestra, Hexa Renewables and Itramas collaborate on 1GW hybrid solar power plant

SHAH ALAM - UEM Group Berhad, through its subsidiary UEM Lestra Berhad, in collaboration with Hexa Renewables Malaysia Sdn Bhd and Itramas Corporation Sdn Bhd, has achieved significant stride in developing a one-gigawatt (1GW) hybrid solar power plant

The project, which was first announced by the government in July 2023 was a crucial initiative under the National Energy Transition Roadmap (NETR).

In less than six months after the MoU signing and to partly realise the 1GW project, two agreements were signed which would see the three companies working together to develop the first 500-megawatt (500MW) hybrid solar power plant, to be located in Segamat, Johor:

UEM in the statement said the first agreement was that UEM Lestra and Hexa Renewables to form a joint venture company (JV) known as, Lestra Hexa JV Sdn Bhd (Lestra Hexa JV), an entity that is 51 per cent-owned by UEM Lestra and the remaining 49 per cent by Hexa Renewables.

Secondly, technical partner agreement between Lestra Hexa JV and Itramas, Malaysia’s largest vertically integrated solar plant developer, EPCC (Engineering, Procurement, Construction, and Commissioning) and service provider.

Under the agreement, Itramas would provide technical services in developing a complete EPCC package for Lestra Hexa JV.

The signing ceremony saw the MoU for UEM Group's 1GW hybrid solar power plant project signed by key representatives of the three companies – UEM Lestra Chairman and UEM Group Managing Director Datuk Mohd Izani Ghani on behalf of UEM Lestra, Hexa Renewables CEO Vince Choi and Itramas group managing director Lee Choo Boo.

Also witnessed the event were UEM Group chairman Datuk Amran Hafiz Affifudin, the parent company of Hexa Renewables, I Squared Capital Senior Partner Harsh Agrawal and Itramas executive director Tunku Hammam Tunku Sulong.

Izani expressed gratification with the positive start in realising this strategic and high-value national energy transition project.

“We’re off to a good start in realising this strategic and high-value national flagship energy transition project.

“In addition to formalising our partnerships with Hexa Renewables and Itramas, we have also secured a suitable land in Segamat, Johor that will house the 500MW hybrid solar power plant.

“I’m pleased to also share that engagements with potential off-takers for the first 500MW solar power plant have been positive and we will be firming up the details in the coming months. In addition, we will be working with the government on the details of the Third-Party Access (TPA) framework that will enable this project to go live,” he said in a statement.

On the remaining 500MW, Izani said that discussions between UEM Lestra and its other partners were ongoing and an update on it would be provided in the near future.

Commenting on the progress made, Choi said they were extremely excited to have reached another significant milestone towards realising this monumental project of Malaysia’s NETR.

“The team has been working relentlessly to come this far and will continue to leverage our collective strengths and experience in developing and executing projects of this scale.

“We are confident the project, along with other NETR initiatives, will blaze the trail of making Malaysia the renewable energy hub of South-East Asia,” Choi said.

This was further echoed by Itramas’ Lee, who said that the progress of this project, together with their partners, UEM Lestra and Hexa Renewables, was a source of great enthusiasm for the entire team at Itramas.

“It's a milestone we have been eagerly working towards.

“The development and finalisation of the TPA framework, along with our engagements with potential off-takers, are pivotal in shaping our project's immediate impact, transitioning our plans into action.

“This collective commitment is poised to make a significant, tangible contribution to Malaysia's energy landscape,” Lee added.