Brookfield Renewable Partners, a global leader in renewable energy, has joined $5 billion Solarvest Holdings. Collectively, they are embarking on an ambitious pilot project to green Malaysia’s clean energy development canvas. The joint investment framework agreement is expected to accelerate the development, construction and operation of at least 1.5GW of utility-scale solar projects. Further, it will jump-start battery energy storage (BES) initiatives throughout Malaysia. This partnership represents Brookfield’s first investment in the country and will help execute the National Energy Transition Roadmap (NETR).
With a renewable power portfolio of more than 270GW across the world, Brookfield goes into this new venture with enormous experience and resources behind it. With over 2.3GW of solar photovoltaic projects built in Malaysia, Solarvest has built an impressive track record. In this partnership, Solarvest will be the majority stakeholder with a 51% stake. Brookfield will retain a 49% ownership interest. Further, they will become pervasive players in securing offtakers and thus directly or indirectly set up the financing arrangements for the projects.
Strategic Objectives and Market Potential
The joint venture between Brookfield and Solarvest will capitalize on the increasing demand for renewable energy sources in Malaysia. Daniel Cheng, Brookfield’s head of renewable power and transition for Asia-Pacific, emphasized the importance of this collaboration, stating that “Malaysia is emerging as a regional leader in clean energy, underpinned by ambitious national targets and surging demand from both utilities and corporates.”
The two companies are preparing to invest billions of dollars into Malaysia. They’ll direct their philanthropic capital through Brookfield’s Catalytic Transition Fund, which is focused on advancing decarbonization in emerging markets. Our hope is to complete those projects within the next three to five years. This timeline is a great match with the country’s core objectives of strengthening energy security and reaching carbon neutrality.
“Brookfield is committed to deploying significant capital into Malaysia where these strong market fundamentals align with our capabilities to deliver power and decarbonisation solutions to large corporates, hyperscalers and other key customers globally. We look forward to working with Solarvest to help advance Malaysia’s decarbonisation agenda and meet the national and regional need for green energy.” – Daniel Cheng, Brookfield renewable power and transition for Asia-Pacific head
Collaboration for Sustainable Growth
The partnership goes beyond funding. It merges the unique expertise of each company. Solarvest will take the lead in developing and implementing the projects, drawing on its extensive local experience and cutting-edge methods. With Brookfield’s global network and financial strength, they supercharge their collective capabilities.
Davis Chong, executive director of Solarvest, highlighted the synergy between the two organizations:
“By combining our proven expertise and innovation with our partner’s strong global network and financial strength, we are uniquely positioned to deliver impactful renewable energy solutions that will drive Malaysia’s decarbonisation agenda in line with the National Energy Transition Roadmap (NETR).”
We’ll make the financing moves for each piece on a case-by-case basis. We’re going to be looking at different modalities including borrowing, using internal reserves, sukuk issuance and possibly cash calls.
Looking Ahead
The partnership between Brookfield and Solarvest is a positive development for Malaysia’s rapidly growing renewable energy market. By merging resources and expertise, they aim to create lasting value through clean energy adoption while strengthening energy security in the region.
Both firms are poised to release these efforts, so stay tuned. For that to happen, they’ll need to deliver on their promise of addressing the emerging demand for clean energy technologies. The new partnership will help the countries achieve significant outcomes that support Malaysia’s endeavor to achieve its ambitious energy objectives.