Malakoff and Solarvest formalise long-term electricity supply agreement in Perak
KUALA LUMPUR, Dec 19 – Malakoff Solar Project led by Malakoff Corporation Berhad together with Solarvest Holdings Berhad has signed a 21-year power purchase agreement (PPA) with Tenaga Nasional Berhad (TNB). The agreement covers electricity generated from a large-scale solar photovoltaic (PV) facility in Perak.
The signing took place on Friday. It marks a significant development in Malaysia’s renewable energy sector, particularly contributing to Perak’s energy mix as the country moves towards sustainable energy solutions.
The joint venture entity, Malakoff Silver Solar Sdn Bhd (MSSSB), is owned in an 80:20 equity ratio by Malakoff and Solarvest respectively. MSSSB will oversee the design, construction, ownership, operation, and maintenance of the 470MWac solar PV plant situated in Windsor Estate, within the Larut and Matang district of Perak.Under the agreement, MSSSB will deliver and sell solar-generated electricity to TNB for the duration of the contract. This initiative aligns with Malaysia’s ongoing efforts to reduce carbon emissions and enhance renewable energy deployment nationwide.
The Malakoff Solar Project timeline and market response following the agreement signing
The solar farm’s commercial operation date is anticipated in the first quarter of 2028. Upon commencement, it will provide a reliable source of clean energy to the national grid. The construction and development phases are expected to adhere to regulatory and environmental standards governed by Malaysian authorities. Stakeholders view the project as a pivotal step in scaling up solar energy capacity in the region.
Following the announcement, Malakoff’s shares closed at 80.5 sen on Friday. This represented a marginal decrease of 0.5 sen or 0.62%, valuing the company at approximately RM4 billion in market capitalisation. Year-to-date, Malakoff’s share price has declined by over 5%. Meanwhile, Solarvest’s shares remained stable at RM3.20, with the holding company’s valuation at RM3.01 billion. Solarvest’s stock has recorded an 88% increase so far this year. These movements reflect varying investor perspectives amid ongoing transitions in energy generation and utility sectors.
The official framework and regulatory oversight governing the solar power initiative
Malaysia’s utility frameworks regulate the power purchase agreement, with Tenaga Nasional Berhad acting as the sole electricity utility provider in Peninsular Malaysia. MSSSB, as the special purpose vehicle, must comply with technical standards, grid interconnection requirements, and safety regulations established by energy authorities such as the Energy Commission (Suruhanjaya Tenaga). The project also follows sustainable development guidelines enforced by the Ministry of Energy and Natural Resources.
According to Tenaga Nasional Berhad, the project contributes towards the utility’s transition plan for sustainable energy sources. It also supports the national target of increasing renewable energy capacity in line with the Five-Fuel Diversification Policy. No adverse incidents related to the project construction or operations have been reported by local authorities or emergency services. Ongoing monitoring and compliance audits are expected throughout the development period.
The Malakoff solar farm project is generating attention in public discourse and industry circles
The agreement has received notable discussion on social media platforms and industry forums. These discussions highlight continued interest in renewable energy development within Malaysia. Analysts have observed that long-term PPAs such as this one provide stability to independent power producers. This structure creates confidence for further investment in green technologies. Public commentary has largely focused on the benefits of expanding solar capacity in reducing dependence on fossil fuels.
Industry observers also note that the collaboration between Malakoff, a major player in power generation, and Solarvest, known for expertise in solar solutions, exemplifies increasing corporate synergy in Malaysia’s energy sector. This partnership is seen as a model in leveraging technical capability and capital resources to deploy large-scale solar infrastructure effectively.
The anticipated effects on Malaysia’s energy landscape and infrastructure development
In the short term, the project is expected to influence local engineering activities and supply chain dynamics. It may also stimulate job creation and regional economic activity in Perak. The construction phase may involve coordination with local authorities to manage transport logistics and site safety. However, no traffic or safety disruptions have been reported thus far.
From a long-term perspective, the establishment of a 470MWac solar PV facility contributes to Malaysia’s renewable energy targets. It also enhances grid stability through diversified power sources.
Overall, the project aligns with policies encouraging private sector participation in sustainable infrastructure. It reflects a trend towards integrating more solar power plants into Malaysia’s energy portfolio.
Location: KUALA LUMPUR
Date: 2025-12-19
