Founder Group Limited (NASDAQ: FGL) is expanding its position in Malaysia’s utility-scale solar market after its subsidiary, Founder Energy Sdn Bhd, secured a RM6.05 million (about US$1.5 million) subcontract under the country’s Corporate Green Power Programme (CGPP).
The award covers procurement, electrical and mechanical installation, and commissioning for a 29.99-megawatt alternating-current (MWac) large-scale solar photovoltaic facility in Daerah Kuala Muda, Kedah. Founder Energy will serve as subcontractor on the project, while major equipment will be purchased directly by the main contractor.
The contract comes as Malaysia accelerates renewable energy deployment through a series of policy and market initiatives aimed at increasing clean power capacity and encouraging corporate participation in the energy transition.
CGPP allows corporate customers to procure renewable electricity directly from large-scale solar developers through Malaysia’s electricity grid. The program is designed to support corporate decarbonization commitments while increasing the contribution of utility-scale renewable generation to the national power system.
For Founder Group, the latest award provides an opportunity to build its project pipeline as Malaysia moves toward more ambitious renewable energy targets.
The country’s National Energy Transition Roadmap (NETR) targets renewable energy capacity of 70% by 2050. Alongside CGPP, Malaysia has introduced mechanisms including the Corporate Renewable Energy Supply Scheme (CRESS) and Solar Accelerated Transition Action Programme (Solar ATAP) to broaden renewable energy adoption and provide additional pathways for businesses to source cleaner electricity.
The government has also expanded its utility-scale solar ambitions. In July 2026, Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) launched the framework for the Large-Scale Solar 6 (LSS6) program, which offers 2,500 MW of solar capacity. The initiative is expected to attract between RM13 billion and RM15 billion, equivalent to approximately US$3.2 billion to US$3.7 billion, in investment.
The combination of corporate renewable energy procurement and larger utility-scale tenders could create a wider market for engineering, procurement, construction and commissioning (EPCC) contractors.
Founder Group said demand could increase as energy-intensive companies look for greater predictability in electricity costs amid tariff changes under Regulatory Period 4 (RP4) and fluctuations in Automatic Fuel Adjustment (AFA) mechanisms. The company expects opportunities across both large-scale solar and commercial and industrial (C&I) projects, as well as in operations and maintenance services.
Under the latest letter of award, Founder Energy will be responsible for procuring equipment within its designated scope and carrying out electrical and mechanical installation and commissioning. Its responsibilities also include securing and maintaining approvals, licenses, clearances and permits required for construction and operation.
The company will deliver, install, test and commission the solar facility through the interconnection point, with work carried out in accordance with Prudent Utility Practices and requirements established by Tenaga Nasional Berhad (TNB), Malaysia’s national utility.
The project also fits into Founder Group’s broader strategy of combining construction services with longer-term solar asset management.
The company provides operations and maintenance services supported by proprietary artificial intelligence technologies. These include AI-based diagnostics, predictive maintenance tools and drone-assisted visual and thermal inspections. Such systems are designed to identify equipment anomalies and module defects with less manual intervention, potentially helping operators improve asset availability and performance.
The integration of digital monitoring into solar operations reflects a broader shift within the renewable energy industry. As installed capacity increases, operators are placing greater emphasis on maintaining generation efficiency and identifying equipment problems before they result in prolonged outages or expensive repairs.
“Being engaged as subcontractor for the electrical and mechanical installation and commissioning scope on a near-30MW facility reflects the trust that major industry players place in our execution capability,” Lee Seng Chi, chief executive officer of Founder Group Limited, said in a statement.
Lee added that CGPP and LSS6 could play important roles in Malaysia’s renewable energy expansion and said each subcontract award could strengthen the company’s track record as the market develops.
Founder Group describes itself as a pure-play, end-to-end EPCC solutions provider focused on Malaysia’s solar photovoltaic market. Its business is concentrated on large-scale solar and C&I projects, with additional services covering the operational lifecycle of solar installations.
The Kedah project is relatively modest compared with the capacity offered under LSS6, but it underscores the type of downstream contracting opportunity that could emerge as Malaysia expands its renewable energy infrastructure.
For Founder Group, the immediate financial contribution from the US$1.5 million award is limited in scale. Its longer-term significance may lie in establishing project credentials and positioning the company for additional EPCC and O&M work as Malaysia moves toward its 2050 renewable energy target.
