The solar power assets, which will include energy storage systems, will have an accumulated target capacity of 1.2GW.

Guthrie’s group managing director, Helmy Othman Basha, said renewable energy (RE) is one of two new businesses it plans to venture into.

“It is critical, both as a new and sustainable revenue stream and for our net-zero target.

“At a national scale, it will help to advance Malaysia’s efforts to decarbonise its electricity sector,” he said after signing the agreement with Gamuda today.

Separately, Gamuda Engineering executive director Faris Yusof said its joint venture with Guthrie will see the two companies provide RE solutions for its multinational partners.

“Gamuda is focussed on growing our renewable energy infrastructure portfolio, particularly in Malaysia and Australia as well as across different renewable asset classes, including solar, wind and hydro battery energy storage systems,” he said.

The first phase of the partnership will see the two companies identify Guthrie’s unproductive or underutilised land assets nationwide to assess their potential for solar power development.