Clean energy specialist, Solarvest Holdings Berhad signed power purchase agreements (“PPA”) with Tenaga Nasional Berhad (“TNB”) for the sale of electricity from its three shortlisted large-scale solar (“LSS”) plants under the LSS@Mentari program.
The signing of the contract officiates the 21-year solar electricity deal, whereby TNB will be the off-taker of the electricity generated by Solarvest’s LSS plants across two states with a cumulative capacity of 50 megawatts (MW). Among the three LSS plants, the largest solar farm has a capacity of 25MW which will be based in Manjung, Perak. This is followed by a 13MW solar farm to be constructed in Kuala Selangor and another 12MW solar farm in Manjung, Perak.
Based on Solarvest’s healthy balance sheet, the development projects will be funded by a combination of funds raised from corporate exercise and external borrowings. Upon the signing of the PPA, the Group will work towards obtaining financing and the necessary approvals by the end of 2021. Construction activities for the solar plants are expected to commence in early 2022. The three plants are scheduled to begin commercial operation between 2022 and 2023.
Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong said, “We are now a step forward in transforming Solarvest into a clean energy specialist with extended capabilities and offerings. We aim to move beyond our involvement in the installation phase and include areas such as energy supply as well as green technology solutions, essentially becoming a more comprehensive outfit in the renewable energy space. While we are cautious of the short-term headwinds in the industry, we remain steadfast in delivering high-performing power plants, underpinned by our extensive experience in building LSS plants. Apart from that, we are also exploring to incorporate advance solar PV systems and AI technology to maximise the energy generation output.”
“Upon the commencement of operations, the positive contribution from these solar plants will enlarge our recurring earnings stream from financial year-end 2023 onwards, complementing our project-based business model. This is a significant step in our quest to build new revenue streams that will give the Group consistent and stable cash flows over a long term, thus enhancing our earnings visibility and returns to shareholders,” he concluded.