Invest Energy to pump RM2.2bil in renewable energy

Invest Energy to pump RM2.2bil in renewable energy

KUALA LUMPUR: Invest Energy Sdn Bhd, a company in the renewal and clean energy sector, plans to invest RM2.2 billion over the next five to seven years in increasing its presence and investments in Malaysia and the Southeast Asian (SEA) region.

The company plans to invest and develop strategic sizeable renewable energy (RE) projects in SEA in line with its vision to achieve carbon neutrality and help decarbonise economies.

The investment is in partnership with a global European environmental, social, and governance (ESG) fund aimed at increasing foreign investments in Malaysia.

"Currently, we are in the midst of finalising agreements for investments in projects worth around RM96 million in Malaysia and Vietnam.

"Another RM145 million will be invested in Malaysia by the third quarter of 2021," founder and group managing director Anand Ramakrishnan said in a statement today.

These projects represent about 90MW of distributed energy and renewable energy plants in Malaysia and Vietnam.

"With our strong track record and in partnership with a large reputable ESG fund, as a joint venture partner, we will grow our portfolio. We are currently negotiating projects with additional generating capacity of almost 150MW," he said.

In addition, Invest Energy is disposing two of its wholly owned subsidiaries – Konpro Industries Sdn Bhd (KISB) and Meru One Sdn Bhd (MOSB).

The entire equity is to be disposed for RM32 million, including debt.

KISB operates a 2MW waste-heat-recovery power plant (WHRPP) in Negeri Sembilan with a 11-year concession while MOSB, which operates a 2MW co-generation plant in Selangor, has an 8+8-year concession agreement.

Both plants operate 24/7 under Invest Energy's proprietary build, own, operate and transfer (BOOT) model with multinational companies.

"As these companies are long-term cash flow generating and bankable, there were offers from various private and listed companies," Anand said.

Negotiations began about a year ago and are expected to be completed in the next three months, subject to condition precedents and internal approvals.

Both buyer and seller have agreed to the deal in principle, and the announcement will be made within the next 60 to 90 days.

"The asset monetisation exercise will strengthen our balance sheet and our position to acquire and develop larger distributed energy and renewable energy assets immediately," Anand said.

The company aims to be the largest multi-asset renewable energy player with generating capacity of between 500MW-750MW over the next five years.

Invest Energy's investments will continue to be a mix of distributed energy, renewable energy, energy storage and energy efficiency.

The group will continue to harness big data and develop enhanced analytics including advanced maintenance programs that will be the backbone of its future projects, Anand said.

"These will contribute towards achieving a carbon neutral society and tackling climate change," he said.