The global race to harness solar energy is gaining momentum, with solar parks emerging as a leading sustainable energy solution. The world’s largest solar park, spanning 32,947 acres in Xinjiang, China, recently came online with a capacity of 5 GW, enough to power Luxembourg or Papua New Guinea for a year. Previously, the Bhadla Solar Park in Rajasthan, India, held the title with a 2.245 GW capacity across 14,000 acres or 56 km², just under the size of Manhattan (59.1 km²).
The key factors in harnessing solar energy are high levels of sunlight and extensive land availability. SD Guthrie Berhad (SDG), formerly known as Sime Darby Plantation Berhad, has a strategic advantage with its vast landbank in Malaysia, a country with a tropical climate offering 4 to 8 hours of daily sunshine and about 1,500 to 2,000 kWh/m² of solar radiation annually. As the largest landowner in Malaysia’s private sector, SDG’s 842,000 acres of landbank include over 109,000 unutilised acres. The company plans to leverage on this landbank for renewable energy solutions.
The first step towards this plan is its participation in the proposed Kerian Integrated Green Industrial Park (KIGIP) in Perak, Malaysia. SD Guthrie, in collaboration with its largest shareholder, Permodalan Nasional Berhad (PNB), will co-develop KIGIP, a 1,000-acre development within SD Guthrie’s Tali Ayer Estate, which is adjacent to a 660-acre site earmarked for solar farms with an estimated 200MW capacity, to serve as the principal green energy source for the area. In a marked departure from its previous ventures into solar energy, SDG intends to own and operate the Kerian solar farm.
A Leap Towards Solar: Embracing Renewable Energy
SDG’s commitment to renewable energy extends beyond KIGIP. The company plans to convert less productive agricultural lands into solar farms and is in discussions with state agencies to develop more industrial parks based on this model.
Since 2018, the Company has leased land for third-party solar farms under Malaysia’s Large-Scale Solar (LSS) programme. To date, SDG has leased land for a 20MW LSS1 project, 12 LSS4 projects with a total capacity of 336 MW, and for 11 projects under the Corporate Green Power Programme (CGPP) with a capacity of 260 MW. SD Guthrie is targeting more sites under the upcoming LSS5 programme as well.
Remarkably, 40% of the LSS4 quota and 32% of the CGPP quota awarded by Energy Commission of Malaysia is situated on SDG’s land.
Malaysia's abundant sunlight and government commitment to eco-friendly practices make solar farms a highly profitable venture. The National Energy Transition Roadmap (NETR) is a comprehensive strategic plan launched by the Malaysian Government to transition the country's energy systems from conventional, fossil-fuel-based sources to cleaner, more sustainable alternatives. This roadmap champions solar and floating solar photovoltaic projects, emphasising the nation's shift towards renewable energy.
By integrating solar energy into its business model, SD Guthrie secures a sustainable revenue stream while contributing to the global shift towards renewable energy. This strategic move aligns with the company’s new tagline, ‘Unlocking Nature’s Superpowers,’ reflecting its broader goals of environmental responsibility, operational excellence, and long-term sustainability.