Malaysian infrastructure and property development company Ibraco Bhd has signed a Power Purchase Agreement (PPA) with Syarikat Sesco Bhd for the development of a 100 MW solar photovoltaic (PV) power project in Sarawak. The company announced the agreement through a regulatory filing with Bursa Malaysia on June 26, 2026.
The project will be developed in the Bintulu Division of Sarawak and marks Ibraco’s entry into large-scale renewable energy infrastructure. Under the agreement, the company will be responsible for the design, construction, development, and long-term operation of the solar PV facility. Once completed, the plant will generate 100 MW of alternating current (AC) electricity and supply the power directly to Syarikat Sesco Bhd.
The new solar project is expected to support the growing demand for clean electricity in Sarawak while strengthening the region’s power infrastructure. It also reflects Malaysia’s continued efforts to expand renewable energy generation and reduce dependence on conventional energy sources.
The Power Purchase Agreement defines the responsibilities of both parties regarding the sale and purchase of electricity generated by the solar plant. The agreement will remain in force for 30 years, beginning from the commercial operation date of the facility. According to the filing, the project is expected to achieve commercial operation by December 2029.
Ibraco stated that the agreement is not expected to have any immediate material impact on the company’s earnings or net assets for the financial year ending December 31, 2026. Since the project is currently in the early stages of development, its financial contribution will only begin after the plant becomes operational.
However, the company expects the project to generate stable and recurring revenue over the long term once commercial operations commence. The solar facility is anticipated to make a positive contribution to Ibraco’s future financial performance through the sale of electricity under the long-term agreement.
The project represents an important milestone for Ibraco as it diversifies its business beyond infrastructure and property development into the renewable energy sector. The investment aligns with the company’s long-term growth strategy and supports Malaysia’s clean energy transition. With a 30-year power purchase agreement in place, the project is expected to provide a reliable source of renewable electricity while contributing to the country’s sustainability goals and the expansion of solar energy capacity in Sarawak.
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