Dutch Lady Milk Industries Berhad (DLMI) has signed a long-term Power Purchase Agreement (PPA) with Pekat Solar Sdn Bhd, a wholly-owned subsidiary of Pekat Group Berhad, to accelerate its renewable energy transition through the installation of a rooftop solar system at its DLMI@Enstek manufacturing facility in Malaysia.
Under the agreement, Pekat Solar will design, install, own, and operate the rooftop solar system, while DLMI will purchase the electricity generated from the facility. The arrangement enables DLMI to adopt renewable energy without upfront capital expenditure while improving long-term energy cost predictability and operational efficiency.
The project includes the installation of solar panels across multiple buildings within the facility, including the Distribution Centre, Administration Building, and Employee Parking areas. Once operational, the solar system is expected to generate around 4.9 million kWh of renewable electricity annually, offsetting nearly 24% of the manufacturing plant’s total electricity consumption.
Construction is scheduled to commence in June 2026, with commercial operations expected by December 2026. The project will operate under a 15-year agreement aimed at strengthening DLMI’s long-term energy resilience while mitigating exposure to electricity cost volatility.
The initiative forms part of DLMI’s broader sustainability strategy, which targets a 30% reduction in emissions and energy intensity by 2030. The partnership also aligns with Malaysia’s National Energy Transition Roadmap (NETR), supporting the country’s renewable energy and decarbonisation objectives.
Commenting on the development, Veronika Utami said the partnership reflects DLMI’s commitment to strengthening sustainable operations while reducing environmental impact and improving resilience amid evolving energy market conditions.
Meanwhile, Tai Yee Chee stated that the collaboration demonstrates how industrial partnerships can contribute to building a more sustainable and energy-efficient manufacturing ecosystem in Malaysia. He added that the project highlights how sustainability and operational excellence can work together to support long-term business growth.
DLMI, part of Royal FrieslandCampina N.V., said the initiative reinforces its long-term strategy of integrating sustainability and operational resilience into its manufacturing operations while continuing to deliver quality dairy products to Malaysian consumers.
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