I Squared Capital, a leading global infrastructure investment manager, announced today that its portfolio company, HEXA Renewables, has signed a memorandum of understanding to develop up to 1 gigawatt of hybrid solar photovoltaic projects in the southern tip of Peninsular Malaysia. The project is the first to be announced under Malaysia’s National Energy Transition Roadmap, which targets that 70 percent of the country’s energy capacity be sourced from renewables by 2050. The memorandum is signed with UEM Group Berhad (UEM), a wholly owned subsidiary and the green investment platform of Khazanah Nasional Berhad, the sovereign wealth fund of the Government of Malaysia; and ITRAMAS Corporation (ITRAMAS), the largest vertically integrated solar power plant developer, EPCC and service provider in Malaysia.
“I Squared Capital and our wholly owned renewable energy platform, HEXA Renewables Malaysia, are proud to participate in this landmark project,” said Gautam Bhandari, Chief Investment Officer and Managing Partner of I Squared Capital. “As a pioneer in investing in the renewable and Energy Transition sector with nearly 5.8 gigawatts of renewable assets around the world, we are excited to bring our expertise in green power generation to help catalyze the energy transition in Malaysia, an IPEF founding member.”
HEXA Renewables’ commitment to this project follows I Squared Capital’s agreement with the U.S. International Development Finance Corporation (DFC) to partner in financing sustainable infrastructure projects in emerging markets, including those party to the Indo-Pacific Economic Framework (IPEF), such as Malaysia. The project will advance I Squared Capital and the DFC’s shared ambition to support inclusive economic development through climate change mitigation.
“I Squared Capital welcomes this agreement between HEXA and UEM-ITRAMAS to develop a large-scale, state-of-the-art solar project to support local demand for clean power,” said Harsh Agrawal, Senior Partner of I Squared Capital. “We will continue to seek out similar climate focused infrastructure projects to support the global energy transition, including in emerging markets and countries party to the Indo-Pacific Economic Framework, pursuant to our partnership with the DFC.”
HEXA and UEM-ITRAMAS will collaborate on the planning, structuring, off-take arrangements, construction, and operation of the project, with HEXA also leveraging its established track record in the energy transition space to support the development of Malaysia’s energy transition related sectors including RE, grid stability, battery energy storage system (BESS), clean fuels, and energy efficiency.
