Tenaga Nasional Bhd (TNB), IOI Corp Bhd and a consortium of small and medium enterprises (SMEs) have partnered to develop a 500 MW solar power project integrated with a battery energy storage system (BESS) in Bahau, Negeri Sembilan, Malaysia. The project represents a major renewable energy investment, with TNB planning to inject up to RM424.4 million into the joint venture (JV).
According to a filing with Bursa Malaysia, TNB’s subsidiary, TNB Renewables Sdn Bhd (TRe), has signed a shareholders’ agreement with IOI Corp’s subsidiary, Luminous Aspect Sdn Bhd, and CSP 500MW Sdn Bhd. The project will be developed through Bahau Energy Ventures Sdn Bhd, the joint venture established by the three partners.
The proposed development will comprise a 500 MWac solar photovoltaic (PV) power plant and a 250 MW/1,000 MWh BESS. It will operate under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS), which enables renewable energy developers to supply green electricity to corporate consumers.
Under the agreed ownership structure, TRe will hold a 70% stake in the joint venture, making it the largest shareholder. Luminous Aspect will own 25%, while CSP will hold the remaining 5%. CSP represents a consortium of 12 SMEs that have established the special purpose company to participate in the development and implementation of the project.
The JV has a maximum equity capitalisation of RM606.2 million. TRe will contribute RM424.4 million, while Luminous Aspect and CSP will invest RM151.5 million and RM30.3 million, respectively. The project financing is expected to combine shareholder equity and third-party project financing, with a debt-to-equity ratio of up to 80:20, subject to market conditions and funding availability.
The project will be supported by TNB’s long-term renewable energy offtake agreement with DayOne Data Centres Ltd, a Singapore-headquartered digital infrastructure company. Under the agreement announced on June 11, 2025, DayOne is expected to procure up to 500 MWac of renewable energy over 21 years to support its data centre operations in Malaysia.
TRe will act as the project’s asset manager and oversee engineering and procurement arrangements. Meanwhile, IOI will participate as an investor and provide the project site through a land lease arrangement. IOI Group Managing Director and Chief Executive Datuk Lee Yeow Chor said the partnership would support the company’s renewable energy portfolio and generate stable long-term recurring income.
For TNB, the project is expected to strengthen its renewable energy portfolio and support Malaysia’s energy transition. The company highlighted growing corporate demand for renewable electricity and the implementation of CRESS as important factors supporting the project’s prospects.
TNB also stated that the transaction is not expected to have a material impact on the group’s earnings per share, net assets per share or gearing for the current financial year. The eventual financial impact will depend on the final project cost, financing arrangements and commercial operations.
The partnership also aligns with IOI’s Five-Year Strategic Roadmap for 2025–2029, which aims to expand its renewable energy business and strengthen its participation in Malaysia’s low-carbon energy transition.
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