Solar project developer Scatec Solar, along with its partners has closed the financing for a 47 MW Redsol project in northwest Malaysia with a total investment of approximately $47 million.

BNP Paribas will provide the non-recourse project finance facility for the project, covering 73 percent of the project cost.

The solar power plant is expected to deliver 67 GWh of electricity per year with annual revenues of approximately $6 million. The project is being realised in a consortium with Fumase (Malaysia) Sdn Bhd, a U.S.- and Malaysia-based asset management and development company focused on renewable energy in south and southeast Asia. The Redsol project was awarded under Malaysia’s second large-scale solar tender in December 2017 and will be Scatec Solar’s fourth solar power plant in the country.

“With this project we continue to strengthen our position as the leading solar IPP in Malaysia and as a long-term partner to meet the country’s renewable energy targets”, said Raymond Carlsen, CEO of Scatec Solar.

Scatec Solar will provide 100 percent of the project’s equity. In addition, the company is turnkey EPC provider and will be providing operation, maintenance as well as asset management services to the power project. Construction is expected to start imminently with grid connection to be achieved in the fourth quarter 2019.

In June 2018, Scatec Solar and partners reached the financial closure for 258 MW of solar project in Upington, South  Africa. The total cost of the projects is ZAR4.76B ($402M). A consortium of commercial banks and DFIs with Standard Bank in the lead provided non-recourse project finance of ZAR3.68B (~$311M).

Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.