IOI Corporation Berhad has entered into a strategic renewable energy partnership with Tenaga Nasional Berhad (TNB) and a consortium of small and medium-sized enterprises (SMEs) to jointly develop a 500 MWac large-scale solar photovoltaic project integrated with a 250 MW/1,000 MWh battery energy storage system (BESS) in Malaysia. The project marks IOI’s first participation in a large-scale renewable energy development under the Corporate Renewable Energy Supply Scheme (CRESS).
The agreement was signed on 3 November 2026 through IOI’s wholly owned subsidiary, Luminous Aspect Sdn Bhd, which entered into a joint venture and shareholders’ agreement with TNB Renewables Sdn Bhd (TRe) and CSP 500MW Sdn Bhd, representing a consortium of SMEs. The partnership aims to develop the solar and energy storage project through Bahau Energy Ventures Sdn Bhd, an established renewable energy development company.
Under the agreed ownership structure, TRe, a wholly owned subsidiary of TNB, will hold a 70% stake in the project development company. Luminous Aspect will own 25%, while the consortium of SMEs will hold the remaining 5% shareholding. The agreement also includes a long-term land lease arrangement between the development company and IOI for approximately 1,300 acres of land located in Bahau, Negeri Sembilan.
The project will be supported by a long-term renewable energy offtake agreement between TNB and DayOne Data Centres Limited, a Singapore-headquartered global digital infrastructure platform. Under the agreement announced on 11 June 2025, DayOne is expected to procure up to 500 MWac of renewable energy over a 21-year period to meet the electricity requirements of its data centre operations in Malaysia.
The integration of a large-scale battery energy storage system is expected to support renewable energy supply by providing storage capacity and improving the availability of solar power. The project will also contribute to meeting the growing electricity demand from Malaysia’s expanding digital infrastructure and data centre industry.
IOI Group Managing Director and Chief Executive Dato’ Lee Yeow Chor said the partnership provides an opportunity to participate in one of Malaysia’s largest solar and energy storage developments under the CRESS framework. He highlighted that the long-term offtake arrangement with an established data centre operator is expected to generate stable recurring income for IOI through its shareholding in the development company and its role as the project land lessor.
The investment aligns with IOI’s Five-Year Strategic Roadmap for 2025–2029, which focuses on expanding its renewable energy portfolio and supporting Malaysia’s transition towards a low-carbon energy future.
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