reNIKOLA Holdings, a prominent renewable energy company based in Malaysia, has unveiled ambitious plans to secure 2 billion ringgit ($438.4 million) in funding over the next three years to bolster its pipeline of projects, with a special focus on advancing solar initiatives in Southeast Asia.
In a recent disclosure to Reuters, Boumhidi Adel, the managing director of reNIKOLA, revealed the company’s upcoming move to issue a 390 million ringgit Islamic bond or sukuk in August. Notably, this sukuk issuance will carry the distinction of being the first climate bond-certified sukuk, marking a significant milestone for reNIKOLA and the entire renewable energy sector.
As part of its strategic expansion approach, reNIKOLA is actively working towards a reverse takeover of Pimpinan Ehsan, a Malaysian shell company, with the completion targeted for the first quarter of 2024. The successful listing is expected to unlock additional equity, empowering reNIKOLA to drive the development of more renewable projects.
Currently, reNIKOLA manages 178-megawatt peak (MWp) plants, but the company has set its sights on an ambitious goal of expanding its renewable projects to a staggering 1 gigawatt-peak (GWp) within the next three years. Boumhidi Adel emphasized that their primary focus for expansion remains within Malaysia, but they are also actively exploring opportunities for renewable projects across ASEAN and South Asia. Apart from solar power, reNIKOLA is keenly interested in leveraging biogas and green hydrogen as other forms of renewable energy.
The escalating demand for green power in South and Southeast Asia is driven by factors such as economic growth, frequent power disruptions due to weak power grids, and the mounting impacts of climate change. Governments and businesses in the region are increasingly recognizing the imperative of transitioning to sustainable and renewable energy sources to meet growing energy demands responsibly.
In line with this global shift towards renewable energy adoption, the International Energy Agency based in Paris projected in May that global investment in clean energy would surpass spending on fossil fuels this year. This favorable trend aligns with reNIKOLA’s ambitious plans to expand its presence and make substantial contributions to the renewable energy landscape in the region.