Sovereign wealth fund 1Malaysia Development Bhd. may build the nation’s biggest solar power plant ahead of an initial public offering, the Edge Financial Daily reported, citing industry sources it didn’t identify.
The project would help diversify 1MDB’s 3,951-megawatt power-generation portfolio, which it plans to list, according to the report. 1MDB didn’t immediately respond to an e-mail and phone call requesting comment.
The sovereign fund has been named as the top contender to develop the project proposed by Malaysia’s Energy Commission and Sustainable Energy Development Authority, the Edge said. The plant would boost Malaysia’s photovoltaic capacity by 56 percent, according to the report.
It will have to compete with gas-fired plants to sell power through the grid to Tenaga Nasional Bhd (TNB), the national power distributor, at a proposed rate of 600 ringgit ($182) a megawatt-hour, according to the report. Globally, the average, long-term cost of generating power from solar panels is about $139 a megawatt-hour, according to data compiled by Bloomberg.
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