IOI Inks Renewable Energy Partnership With TNB For 500 MWac Large-Scale CRESS Project

IOI Corporation’s subsidiary Luminous Aspect has signed a joint venture with TNB Renewables and CSP 500MW to develop a 500MWac solar photovoltaic project with a 250MW/1,000MWh battery energy storage system, IOI’s first large-scale project under Malaysia’s CRESS scheme.

Putrajaya, Malaysia, November 4, 2026 -- IOI Corporation Berhad (“IOI”) announced that its wholly owned subsidiary, Luminous Aspect Sdn Bhd (“Luminous”), has entered into a joint venture and shareholders’ agreement on 3 November 2026 with TNB Renewables Sdn Bhd (“TRe”), a wholly owned subsidiary of Tenaga Nasional Berhad (“TNB”), and CSP 500MW Sdn Bhd (“Consortium of SMEs”), to jointly develop a 500MWac solar photovoltaic project integrated with a 250MW/1,000MWh battery energy storage system (“BESS”). The project marks IOI’s first large-scale renewable energy project under the Corporate Renewable Energy Supply Scheme (“CRESS”).

Under the agreement, TRe will hold a 70% stake in Bahau Energy Ventures Sdn Bhd, the renewable energy development company (“RED”), while Luminous and Consortium of SMEs will hold 25% and 5% respectively. Together with the signing of this agreement, the RED has also entered into a long-term land lease agreement with IOI on approximately 1,300 acres of land in Bahau, Negeri Sembilan.

The project will be supported by TNB’s long-term renewable energy offtake agreement with DayOne Data Centres Limited (“DayOne”), a leading global digital infrastructure platform headquartered in Singapore. Under the agreement, DayOne is expected to procure up to 500MWac of renewable energy over a 21-year period to support its data centre operations in Malaysia, as announced by the parties on 11 June 2025.

Dato’ Lee Yeow Chor, IOI Group Managing Director and Chief Executive said: “IOI is pleased to participate in the development of one of the country’s largest solar and energy storage projects under the CRESS framework, together with an experienced renewable energy company as our partner. Supported by an offtake agreement with a reputable data centre company, we are optimistic that the project will yield stable long-term recurring income for IOI, both as a shareholder in the RED and as the lessor of the project site.”

This strategic partnership represents an opportunity for IOI to participate in the development of large-scale renewable energy infrastructure in Malaysia and contribute to the country’s transition towards a low-carbon energy future. It aligns well with our Five-Year Strategic Roadmap (2025-2029) to expand our renewables business portfolio which comprises palm wood manufacturing and processing of paper pulp from empty fruit bunch fibres.

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