Hanwha Energy Completes 48MW Solar Power Plant in Perlis, Malaysia

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Energy announced on the 14th that it has completed construction of a 48MW solar power plant in the Chuping area of Perlis state, located in the northwest of Malaysia, and recently started commercial production.

Hanwha Energy won the LSS 2 Chuping project through the Large-Scale Solar (LSS) second program bidding organized by the Malaysian Energy Commission (ST) in 2017, and signed a Power Purchase Agreement (PPA) with the Malaysian national utility company, Tenaga Nasional Berhad (TNB), in March 2018. This project is significant as it is the first case of a domestic company winning and completing a solar power plant bid organized by the Malaysian government.

Through this project, Hanwha Energy plans to supply approximately 65,000 MWh of electricity annually to TNB for 21 years. The total project cost amounts to about 40 million USD, of which 80% was financed through local banks.

In December 2019, Hanwha Energy also won a 155MW project in the LSS third program and is currently under construction, with a total project cost of about 100 million USD. With consecutive successes in the Malaysian LSS bidding projects, Hanwha Energy is further solidifying its position as a specialized solar power company in Malaysia.

Jung In-seop, CEO of Hanwha Energy, said, "This project has elevated the status of Korean companies in Malaysia by one step," adding, "We will actively pursue business in the Southeast Asian solar market, including Malaysia, and continue to expand various renewable energy projects."

Malaysia’s renewable energy policy aims to achieve a 20% renewable energy generation ratio (approximately 9GW) by 2025. In line with this policy, Hanwha Energy plans to continue steady investments in solar power projects, including commercial rooftop and floating solar development, as well as entry into the electricity retail and wholesale markets, beyond the Malaysian LSS bidding projects.

This content was produced with the assistance of AI translation services.