The contract reportedly secures up to 500MW of solar-backed renewable energy for its data centres over 21 years. This agreement demonstrates how corporate PPAs are becoming a practical tool for large energy users in Malaysia to meet sustainability goals and access green power directly from the grid.
The power will be sourced from the Citra Energies solar plant in the northern Kedah province that is scheduled to enter construction in early 2026. The Malaysian Energy Commission awarded the project to TotalEnergies (49%) and its local partner MK Land (51%) in August 2023, as part of Malaysia’s Corporate Green Power Programme.
The project marks Peninsular Malaysia’s first utility-scale battery storage project. Back in February, Tenaga had talked about a battery pilot project that it said would be “operated by Grid System Operator (GSO), and overseen by the EC”.
While there are independent electricity producers in Malaysia, TNB, SESB and SEB largely rely on standardised contracts to purchase electricity from them (that is, long term concession agreements for fossil fuel and large-scale solar projects and short form standard PPA for RE projects selling electricity under feed-in tariff programmes).
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