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TotalEnergies Secures 21-Year Solar Power Deal With Google in Malaysia
Yahoo Finance· 2025-12-16 09:11
Group 1 - TotalEnergies has signed a 21-year power purchase agreement (PPA) with Google to deliver 1 terawatt-hour of certified renewable electricity from the Citra Energies solar project in northern Malaysia, equivalent to around 20 megawatts of capacity [1] - The solar plant in Kedah province is set to begin construction in early 2026, with the PPA expected to take effect at financial close in the first quarter of 2026 [2] - The project was awarded under Malaysia's Corporate Green Power Programme (CGPP), with TotalEnergies holding a 49% stake and local partner MK Land owning the remaining 51% [2][6] Group 2 - The agreement highlights the growing trend of hyperscale data center growth and long-term renewable power procurement in emerging markets, as companies like Google seek direct, long-duration PPAs for clean electricity [3] - TotalEnergies is strengthening its position as a global provider of tailored power solutions for large industrial and digital clients, extending its partnership with Google, which includes renewable supply contracts in the United States [4] Group 3 - Malaysia is becoming a key regional hub for data centers due to strong digital demand, competitive operating costs, and supportive government policies, while rising electricity demand from digital infrastructure pressures utilities to expand clean generation capacity [5] - The CGPP allows corporate buyers to contract renewable electricity directly from new projects, aligning with the TotalEnergies–Google agreement by adding new solar capacity [6] Group 4 - TotalEnergies has been expanding its global PPA portfolio with major corporate buyers, reflecting a broader trend toward long-term contracted revenues in the power sector [7] - As of late 2025, TotalEnergies had over 32 gigawatts of installed renewable generation capacity worldwide, targeting 35 gigawatts by year-end and aiming to exceed 100 terawatt-hours of net electricity production by 2030 [8]