Risen Energy will spend MYR42.2 billion (US$10.2 billion) over 15 years on a new solar manufacturing plant in Malaysia, representing the Chinese company’s first investment in Southeast Asia.
The solar cell and module production plant will be built in the state of Kedah, with construction expected to be completed by the end of this year and commercial activities to begin in Q1 2022. It will have an annual production capacity of 3GW for the first five years of operation.
Risen Energy president Xie Jian highlighted Malaysia’s strategic location at the core of Southeast Asia as well as the country’s economic growth prospects. “Risen Energy has clearly shown confidence in Malaysia as an investment destination of choice even as the world faces the challenges of the COVID-19 pandemic,” he said.
Risen last week revealed that it had secured a deal to supply 480MW of its modules that will be manufactured and assembled in Malaysia and used at a PV project in the US state of Indiana. The firm will provide its 540W and 545W bifacial solar modules to developer Global Energy Generation by the end of 2022.
Welcoming Risen’s expansion plans, which are expected to create 3,000 jobs, Malaysian Prime Minister Muhyiddin Yassin said the investment represents a “key win” for the country.
Thanks in part to improved financing incentives and a successful tender policy, Fitch Solutions earlier this year revised its forecast for Malaysia’s solar market, and now expects solar capacity to increase fourfold by 2030 to reach 4GW.
Following on from recent tenders – the latest of which was launched last year – the consultancy expects the government will launch more solar auctions in the coming years, possibly with larger target capacities.
By 2025, Malaysia has a target of reaching 20% clean energy in its power mix.
This July will see more than 300 industry insiders connect online for the seventh Solar & Storage Finance Asia Summit hosted by our publisher, Solar Media. Taking place from 6-8 July, the event will host more than 50 speakers discussing the latest trends in Asia’s solar and storage investment markets.