A cooperation ceremony for a solar photovoltaic project with a total investment of more than $100 million (US$) was held on November 6 at the 9th China International Import Expo (CIIE). The project is part of Malaysia's fifth large-scale solar programme, known as LSS5+ (Large-Scale Solar). According to CPECC's statement, the deal is supported by Standard Chartered Bank and China Construction Bank (Malaysia) Berhad. It joins other solar financing arrangements in Asia, such as Norway's purchase of Indonesian solar emission reductions from PLN.

A Sino-Malaysian ownership and two banks leading the financing

The project is jointly owned by China Power Engineering Consulting Group (CPECC) and Malaysia's Jaks Resources Berhad. Standard Chartered is leading the project financing and acting as account bank and coordinator. China Construction Bank's Malaysia branch is serving as co-lead arranger. According to the statement, the two banks will provide financial support to ensure the smooth progress of the project.

Other lenders are putting together climate financing packages in parallel, as with the climate loan package announced by the Asian Infrastructure Investment Bank (AIIB) for Türkiye. CPECC's statement does not specify the project's capacity, its site or its commissioning timeline. It also does not detail the amount of bank debt.

A milestone in the national energy roadmap

The LSS5+ programme forms part of Malaysia's National Energy Transition Roadmap (NETR). The project supports the country's ambition to reach a 70% share of renewable energy in its installed power generation capacity. It also contributes to the goal of net-zero emissions by 2050.

Once completed, the project would provide a stable, clean and efficient local power supply, according to CPECC. It would become a benchmark for cross-border investment cooperation between China and Malaysia in green energy, the company says. Total investment exceeds $100 million, with CPECC and Jaks Resources as co-owners.