Malaysian clean energy company Solarvest Holdings has signed a joint investment framework agreement with global investment company Brookfield for the development, construction, and operation of at least 1.5GW of utility-scale solar and battery energy storage (BES) projects in Malaysia.

The projects will be delivered over the next three to five years, stated Solarvest.

The move marks Brookfield’s inaugural investment in Malaysia through its Catalytic Transition Fund, aimed at fostering decarbonisation in emerging markets.

Solarvest executive director Davis Chong said: “By combining our proven expertise and innovation with our partner’s strong global network and financial strength, we are uniquely positioned to deliver impactful renewable energy solutions that will drive Malaysia’s decarbonisation agenda in line with the National Energy Transition Roadmap (NETR).

“Beyond Malaysia, this collaboration also enables us to expand our regional footprint, meeting the growing demand for sustainable power. Together, we aim to create lasting value by advancing clean energy adoption, strengthening energy security, and supporting the region’s journey towards carbon neutrality.”

For each project under the partnership, a special-purpose vehicle will be formed. Solarvest will hold a majority stake of 51% while Brookfield will own the remaining 49%, reported The Edge Malaysia, citing Chong from a press conference.

The role of Solarvest will be to develop and implement the projects, whereas Brookfield will be responsible for securing offtakers and facilitating financing arrangements.

The partnership’s aim is to undertake projects falling under the Corporate Renewable Energy Supply Scheme, a programme which enables domestic businesses to purchase renewable energy directly from producers via the national grid.

Financing strategies for the projects will be determined individually, taking into account various methods such as borrowing, internal reserves, sukuk (Islamic bonds) issuance, and potential cash calls.

Brookfield’s renewable power portfolio exceeds 270GW under operational and developmental capacity globally while Solarvest’s portfolio has over 2.3GW of solar photovoltaic projects in Malaysia.

Brookfield renewable power and transition for Asia-Pacific head Daniel Cheng said:“Malaysia is emerging as a regional leader in clean energy, underpinned by ambitious national targets and surging demand from both utilities and corporates given the country’s growing role as a hub for data centres and semiconductor manufacturing.

“Brookfield is committed to deploying significant capital into Malaysia where these strong market fundamentals align with our capabilities to deliver power and decarbonisation solutions to large corporates, hyperscalers and other key customers globally.

“We look forward to working with Solarvest to help advance Malaysia’s decarbonisation agenda and meet the national and regional need for green energy.”