Malaysia’s independent water and power producer Malakoff Corporation has signed a conditional share sale and purchase agreement with Zelleco Engineering to acquire significant equity stakes in ZEC Solar and TJZ Suria.

This strategic acquisition involves 51% of ZEC Solar and 49% of TJZ Suria, boosting Malakoff’s capacity in the renewable energy (RE) sector to 128 megawatts (MW) while also optimizing operational costs through resource synergies.

ZEC Solar is the owner and developer of a large-scale solar (LSS) facility with a capacity of 29 MW, located in Kota Tinggi in the state of Johor, with a 21-year solar power purchase agreement effective until 2040.

The latest acquisition offers Malakoff an opportunity to expand its capacity and portfolio in the RE sector, while also aligning with Malaysia’s National Energy Transition Roadmap.

To date, through its newly established business pillar, Malakoff Green Solutions, the company’s RE portfolio stands at 168MW, ranging from the implementation of LSS and rooftop solar projects to small hydropower generation as well as the installation of carbon-free mobility infrastructure.

“This expansion will significantly enhance Malakoff's technical capabilities and provide a reference point to meet the requirements of future LSS bidding exercises, both domestically and internationally,” says Encik Anwar Syahrin Abdul Ajib, the company’s managing director and group CEO. “There is an undeniable sense of momentum at Malakoff as we accelerate the country’s energy transition [and] contribute to the nation’s target of achieving net-zero emissions by 2050 and increasing RE capacity to 70% within the same period.”