Pekat Group Secures 21-Year PPA For 25 MW Solar And 40 MWh Battery Project In Kuantan

Pekat Group Bhd has made a major stride in Malaysia’s renewable energy sector through its wholly-owned subsidiary, Pentas RE Sdn Bhd, by signing a 21-year Power Purchase Agreement (PPA) for a significant solar and battery storage project in Kuantan, Pahang. This development reflects the company’s growing role in supporting Malaysia’s shift toward sustainable energy solutions.

The project will see the creation of a 25MWac solar photovoltaic (PV) facility integrated with a 40MWh battery energy storage system (BESS). The combination of solar PV and battery storage allows for the efficient management of energy supply, ensuring electricity is available even when sunlight is not, making the power supply more stable and reliable for the off-taker.

Although the identity of the industrial off-taker remains confidential, Pekat stated that it is a major player in heavy industrial manufacturing, involved in the sale of industrial products and transportation services. Under the agreement, Pentas RE will manage the entire lifecycle of the project, including design, construction, ownership, and operation for the full 21-year period.

Financially, the contract represents a significant achievement for Pekat, with projected revenue over two decades estimated at approximately RM239 million. This long-term revenue stream provides the group with strong financial visibility and stability.

Pekat Group CEO Tai Yee Chee highlighted that the project showcases the company’s technical expertise in delivering clean energy solutions. He noted that it offers both economic and environmental benefits to the customer. By using solar power combined with battery storage, the industrial off-taker can reduce “maximum demand” charges, which are costs incurred when drawing peak power from the national grid, while also lowering their carbon footprint.

The project aligns with a growing trend in Malaysia, where industries are increasingly turning to integrated renewable energy solutions to meet sustainability targets and manage rising energy costs. Mr. Tai expressed pride in Pekat’s role in supporting the national agenda for cleaner and more efficient energy systems.

By securing this long-term PPA, Pekat Group strengthens its position in Malaysia’s renewable energy market and sets a benchmark for future large-scale integrated solar projects. The project demonstrates the potential of combining solar power with battery storage to provide reliable, cost-effective, and sustainable energy solutions for industrial customers, contributing to the broader goal of reducing carbon emissions and supporting the country’s energy transition.

This milestone reflects Pekat’s commitment to innovation in clean energy and highlights the increasing importance of renewable solutions in Malaysia’s industrial sector.