Without disclosing the details of the companies involved, she said one of the IPPs was a public-listed firm.

Yeo said another four IPP contracts, which are also new projects, would be reviewed to determine the viability and costs involved without any technical, financial and legal implications.

“The Prime Minister (Dr Mahathir Mohamad) suggested these eight IPPs which were awarded through direct negotiations be reviewed.

“The four that will be cancelled are low-risk projects and we do not need them after a thorough investigation on the implications,” she said after attending a town hall session with the renewable energy industry here today.

Yeo said there were currently more than 30 IPP contracts, adding that the ministry was also reviewing the other agreements.

She said the ministry was also studying ways to enhance competitiveness among industry players to generate power in order to control electricity costs in the country.

“The country’s power supply is running a surplus of 30% and we want to study how to develop a new energy industry centred around renewable energy, instead of the current over-reliance on coal-fired power.

“That is the reason why renewable energy is something the government wants to move forward to, in order to generate energy growth as well as create more jobs,” she said.