27-04-2025
- Business
- Malaysian Reserve
Malaysia-Japan JV powers ahead with RM142m solar project in Kedah
A NEW cross-border renewable-energy (RE) partnership is set to boost Malaysia's clean energy ambitions following the announcement of a RM142 million solar project in Gurun, Kedah.
The initiative, unveiled at Expo 2025 Osaka, marks a significant milestone for Malaysia's positioning as a regional hub for sustainable investment.
The 29.99 MW project will be developed under SM01 Sdn Bhd, a special-purpose vehicle jointly owned by Solarvest Asset Management Sdn Bhd, HSS Engineering Sdn Bhd and Shizen Malaysia Sdn Bhd, a subsidiary of Japan's Shizen Energy Inc.
The project is expected to reduce over 1.1 million metric tonnes of carbon emissions throughout its lifetime.
The development was facilitated by the Malaysian Investment Development Authority (MIDA) under the Corporate Green Power Programme and forms part of the government's broader Green Investment Tax Incentive initiative.
The effort aligns with Malaysia's National Energy Transition Roadmap (NETR), which charts the country's path toward a low-carbon economy.
'This partnership exemplifies Malaysia's commitment to sustainable development and our position as a prime destination for green investments in the region. The SM01 project aligns perfectly with our National Energy Transition Roadmap, demonstrating how international collaboration can accelerate our journey toward a low-carbon future,' MIDA deputy CEO Sivasuriyamoorthy Sundara Raja said speaking at the launch.
The equity structure of SM01 reflects a balanced international collaboration, with each partner holding an equal stake.
The involvement of Shizen Malaysia brings valuable Japanese expertise in renewable energy financing, development, and engineering, while local partners Solarvest and HSS will drive project delivery, engineering and asset management.
Solarvest Group CEO Davis Chong Chun Shiong said the support from MIDA underscores growing confidence in Malaysia's clean energy infrastructure players.
'This incentive boosts the financial sustainability of the SM01 project and demonstrates the value of international collaboration. We remain focused on delivering impactful, commercially viable clean energy projects by leveraging international partnerships and innovation-driven solutions,' he said.
Shizen Malaysia CEO Reza Ikram noted that Malaysia's stable economic landscape and supportive regulatory framework make it an attractive destination for green investors.
HSS Engineers Bhd executive vice chairman and acting group CEO Tan Sri Kuna Sittampalam said the group is proud to support the initiative as engineering and project management partner.
Held under the theme 'Weaving a Future in Harmony', the Malaysia Pavilion at Expo 2025 Osaka is designed to showcase the country's inclusive and innovation-driven economic vision.
The launch of SM01 further underscores Malaysia's intent to attract high-quality investments in renewable energy, green technology and ESG-aligned infrastructure.
The SM01 project stands not only as a commercial success, but also as a symbolic leap forward in Malaysia-Japan bilateral collaboration in the RE sector. — TMR
This article first appeared in The Malaysian Reserve weekly print edition
