Scatec Solar and its partner companies have reached a financial close on three PV projects in Malaysia.

Financing for the projects was raised through the issuance of a green Islamic bond worth US$237 million.

Back in December 2016, Scatec Solar entered into the Malaysian PV market by forming a partnership with a local ITRAMAS-led group that had signed three 21-year power purchase agreements (PPAs) with the country's largest electricity utility — Tenaga Nasional Berhad (TNB).

The partnership led to the development of the three PV projects, with a total investment of about US$293 million. Located in Merchang, Jasin and Gurun, the three solar installations each cover more than 72 hectares of land.

Construction of the plants have already started and is expected to be completed within the next few months.

Raymond Carlsen, CEO of Scatec Solar, noted: "We are very satisfied to reach this important milestone. Together with our partners, we have again demonstrated our wide-ranging expertise and we are now ready to build the largest solar energy portfolio in South East Asia.”

The three solar projects are expected  to generate 282,000 MWh of electricity annually and cut down around 210,000 tons of CO2 emissions per year.

Lee Choo Boo, group managing director of ITRAMAS Corporation, added: "This milestone marks a new beginning for Malaysia's renewable energy sector. The projects are envisaged to generate up to 3,000 local jobs during construction and will generate electricity for up to 93,000 households per year.”