reNIKOLA Gedong Solar and Syarikat SESCO announce a 30-year power purchase agreement for a 363 MWp solar plant in Gedong, Sarawak, with several financial terms still undisclosed.

reNIKOLA Gedong Solar has announced signing a power purchase agreement (PPA) with Syarikat SESCO for a solar photovoltaic plant planned in Gedong, in the Simunjan district of Sarawak, Malaysia. According to a statement released on September 17, 2026 and reported the same day by media outlet DagangNews, the plant is intended to feed power into the local electricity grid. This type of agreement echoes similar contracts recently signed in other solar markets, such as the 216 MW agreement between Naver and Gurīn Energy, or the 315 MW of solar brought online by Nofar Energy in Romania. The full content of the contract between reNIKOLA Gedong Solar and SESCO has not been made public.

A 363 MWp peak capacity for 250 MWac fed into the grid

According to data provided by reNIKOLA, the plant would have an installed peak capacity of up to 363 megawatts-peak (MWp), while the power capacity intended for the grid would be 250 megawatts alternating current (MWac). This gap between the two figures may be explained by the sizing of the direct-current modules relative to the inverters and the grid connection point, a common practice in the solar industry. No technical note specific to the Gedong project has however been made public to confirm this design choice.

reNIKOLA also presents the investment linked to the project as significant, estimating it at approximately 1 billion Malaysian ringgit (roughly 238 million dollars). Available documents specify neither the financing structure adopted, nor the split between equity and debt, nor the identity of any lenders, nor the cost of connecting to Sarawak's electricity grid.

A joint venture bringing together three local partners, a 30-year PPA

The project company reNIKOLA Gedong Solar is presented as a joint venture bringing together reNIKOLA (Sarawak), Punggor Wibawa and Gedong Solar Park Industry. Mr. Boumhidi Adel holds the position of chief executive officer of reNIKOLA, while Mr. Posa Majais chairs Punggor Wibawa and Gedong Solar Park Industry. The ownership percentages among the three partners, governance rights, construction responsibility and risk allocation do not appear in the documents reviewed.

The power purchase agreement signed with SESCO would run for a term of 30 years, according to reNIKOLA. The purchase tariff, indexation mechanisms, availability guarantees, potential penalties and termination conditions of the contract remain unknown at this stage. The effective starting point of this contractual term has also not been specified.

SESCO and Sarawak Energy undergoing a leadership transition

Syarikat SESCO serves as the operational and commercial arm of Sarawak Energy for electricity distribution in Sarawak. Mr. Yusri Safri leads SESCO as chief executive officer. Sarawak Energy is meanwhile preparing a leadership succession at the group level, with the announced departure of Mr. Sharbini Suhaili and the designation of Mr. Ruslan bin Abdul Ghani to succeed him.

The Gedong project falls within the public objective of increasing Sarawak's electricity generation capacity. This government objective covers the entire generation system of the Malaysian state and constitutes neither a specific delivery forecast for the Gedong project nor a guarantee of grid connection. The timeframes between the announcement of a power purchase agreement and its operational realization vary widely depending on the market and local connection conditions.