KAB Sustainable Energy Unit Inks 20-Year Solar Power Purchase Agreements With Nextgreen In Malaysia


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Engineering and energy solutions provider Kejuruteraan Asastera Berhad (KAB) is reinforcing its Sustainable Energy Solutions (SES) segment by entering 20-year solar power purchase agreements (PPA) with Nextgreen Pulp and Paper Sdn. Bhd. (Nextgreen), a subsidiary of Nextgreen Global Berhad.


KAB via its wholly owned company KAB Core Connect O&M Services Sdn Bhd today signed two PPAs with Nextgreen to design, construct, install, own, operate, and maintain solar PV systems with a total combined capacity of 3,387-kilowatt peak (kWp) on the rooftops of multiple production plants and buildings at the latter’s Green Technology Park in Pekan, Pahang. Nextgreen will also purchase the solar PV energy generated.

The solar PV systems will be installed in two phases, with Phase 1 and Phase 2 have installed capacities of 2,507 kWp and 880 kWp respectively. The PPAs are expected to contribute to KAB’s financial performance in 2023, upon their completion within nine months of installation commencement.

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The implementation of the solar PV project kickstarts Nextgreen’s initiative of building a Zero Waste Sustainable Industrial Zone, as well as integrating renewable energy into its operations. The solar PV installations will provide 88,789-megawatt hours (MWh) in energy savings and reduce 51,942 metric tonnes of carbon dioxide equivalents (tCO2e) over the next 20 years.

“The solar PV contracts with Nextgreen are designed to enhance the energy efficiency and sustainability of its manufacturing operations and support its aspiration of achieving a green economy. Furthermore, we look forward to future collaborations in providing a wider range of SES expertise, as Nextgreen continues to develop its sustainable Green Technology Park. This will enable us to contribute as an integrated solutions provider to Nextgreen’s pioneering model to integrate renewable energy and zero-waste technology for sustainable industries in Malaysia,” said Dato’ Lai Keng Onn, Managing Director of Kejuruteraan Asastera Berhad.

KAB’s SES segment has 11 operational solar PV contracts in Malaysia and Thailand with a combined installed capacity of 12,931 kWp, as well as co-generation and waste-heat recovery facilities.

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