Tenaga, IOI and SME consortium develop 500MW solar project in Negeri Sembilan

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500MW Negeri Sembilan solar project

Highlights

TNB Renewables holds 70%, Luminous Aspect Sdn Bhd (IOI) holds 25%, and the SME consortium holds 5% in the Bahau Energy Ventures joint venture for the 500MW solar project in Negeri Sembilan.
The project involves building a 500MW solar plant and a 250MW/1,000MWh battery energy storage system, offering flexibility within the CRESS framework.
The partnership between Tenaga Nasional Bhd, IOI Corporation and SMEs marks an increase in corporate investment in renewable energy and broadens SME participation in Malaysia's energy sector.

This article was translated from the original. Read the original version by our correspondent here.

Joint venture structure and development scope

As reported by The Edge Malaysia, citing Bursa Malaysia, Tenaga Nasional Bhd, through its subsidiary TNB Renewables Sdn Bhd, signed a joint venture agreement with IOI Corporation Bhd and a consortium of 12 small and medium enterprises to develop the project.

The 500MW solar project will be developed through Bahau Energy Ventures Sdn Bhd. Under the equity structure, TNB Renewables holds 70%, IOI subsidiary Luminous Aspect Sdn Bhd holds 25%, and the SME consortium holds the remaining 5%.

In addition to the solar plant, the development also includes a 250MW/1,000MWh battery energy storage system. This combination of generation and storage positions the project as a more flexible energy asset within the CRESS framework.

Implications for Malaysia's energy sector

The partnership reflects the Malaysian corporate sector's continued drive towards large-scale renewable energy, while opening the door for SMEs to participate in energy infrastructure projects. IOI's participation alongside Tenaga also points to cross-sector interest in green electricity supply models for corporate consumers.

For Negeri Sembilan, the Bahau project adds another clean energy development with the potential to strengthen supply capacity and support the country's energy transition. The large-scale battery system also adds operational value by helping manage supply when solar generation fluctuates with weather conditions and daylight hours.

In our earlier coverage of the review of system access charges (SAC) under the scheme CRESS, we explained how the effective SAC rate returned to 18 sen/kWh after the announced reduction to 14 sen/kWh, adding uncertainty to project planning. We also examined the implications of this change for CRESS's competitiveness against Tenaga Nasional tariffs, as well as its potential impact on grid cost structures and base tariffs in the upcoming Regulatory Period review.

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