IOI Corporation Berhad has established a strategic renewable energy partnership with Tenaga Nasional Berhad (TNB) and a consortium of small and medium-sized enterprises (SMEs) to develop a major renewable energy installation in Malaysia. The proposed development will combine a 500 MWac large-scale solar photovoltaic project with a 250 MW/1,000 MWh battery energy storage system (BESS). This initiative represents IOI’s first involvement in a large-scale renewable energy development under the Corporate Renewable Energy Supply Scheme (CRESS).
The solar and BESS project partnership was formalised on 3rd November 2026, when IOI’s wholly owned subsidiary, Luminous Aspect Sdn Bhd, signed a joint venture and shareholders’ agreement with TNB Renewables Sdn Bhd (TRe) and CSP 500MW Sdn Bhd, which represents the SME consortium. The companies will undertake the solar and energy storage development through Bahau Energy Ventures Sdn Bhd, an established renewable energy development company.
The agreed ownership arrangement assigns TRe, a wholly owned subsidiary of TNB, a 70% stake in the project development company. Luminous Aspect will hold a 25% shareholding, with the consortium of SMEs retaining the remaining 5%. The agreement also provides for a long-term land lease between the development company and IOI, covering approximately 1,300 acres of land in Bahau, Negeri Sembilan.
Long-Term Renewable Energy Offtake Supports Project Development
The solar and BESS project will be backed by a long-term renewable energy offtake agreement between TNB and DayOne Data Centres Limited, a Singapore-headquartered global digital infrastructure platform. Under the arrangement announced on 11 June 2025, DayOne is expected to procure up to 500 MWac of renewable energy over a 21-year period to fulfil the electricity requirements of its data centre operations in Malaysia. The inclusion of a large-scale battery energy storage system is expected to strengthen the reliability of renewable energy supply by providing storage capacity and improving the availability of solar power.
The integrated solar and BESS project will also support Malaysia’s increasing electricity requirements as its digital infrastructure and data centre industry continues to expand.
