Four firms get go-ahead to build solar power plants
THE STAR BUSINESS, THURSDAY, 22ND DEC 2016
|TNB in a filing with Bursa Malaysia yesterday said: “The 50MW large-scale solar photovoltaic plant would be located in Kuala Langat, Selangor, subsequent to a competitive bidding process conducted by the EC.”|
PETALING JAYA: Malaysia seems to be going on an overdrive to develop renewable energy sources.
Four more utility companies – Tenaga Nasional Bhd (TNB), Malakoff Corp Bhd, Mudajaya Group Bhd and Integrated Logistics Bhd (ILB) – have been accepted by the Energy Commission (EC) to develop large-scale solar photovoltaic plants.
The first company to get the green light to build a large-scale solar power plant was 1Malaysia Development Bhd’s (1MDB) energy unit, Edra Global Energy Bhd. In 2014, Edra was given the mandate to build a 50MW solar power plant in Kulim, Kedah.
1MDB Solar Sdn Bhd, a subsidiary of 1MDB, had signed a 25-year, power purchase agreement (PPA) with TNB in April 2014.
Edra was supposed to be listed last year and the solar power plant developed gradually. However, the listing plan fell through.
Subsequently, 1MDB sold Edra to China Nuclear Power Corp, a company from China, in a deal valued at RM9.83bil as part of its debt-rationalisation programme.
TNB in a filing with Bursa Malaysia yesterday said: “The 50MW large-scale solar photovoltaic plant would be located in Kuala Langat, Selangor, subsequent to a competitive bidding process conducted by the EC.”
“The letter of acceptance of offer requires TNB to satisfy certain obligations, including completion of negotiations and execution of project,” it said.
It was reported in January that the Energy, Green Technology and Water Ministry would be calling for a request for proposal (RFP) to develop up to 250MW solar power plants this year.
Meanwhile, Malakoff and its partner DRB-Hicom Environmental Services Sdn Bhd (DHES), a wholly owned subsidiary of DRB-Hicom Bhd, will undertake the construction and development of a 50MWac large-scale solar photovoltaic plant of approximately 200 acres, which will be situated in Tanjung Malim, Perak.
The equity holding between Malakoff and DHES in the consortium is on a 51% and 49% basis, respectively.
“The project involves the financing, designing, supplying, building, owning, operating and maintenance of a 50MW large-scale solar photovoltaic plant on a build, own and operate basis, with the expected commercial operation date on July 1, 2018 for a term of 21 years under the PPA.”
Both filings did not mention the value of their projects.
Mudajaya’s unit – Mudajaya Corp Bhd – meanwhile, has accepted the letter of offer from the EC to undertake the development of a large-scale 49MW solar photovoltaic plant in Kuala Kangsar, Perak, for RM270mil.
“The construction period for the project (in Sungai Siput) is 18 months from the finalisation of the award, and it is expected to contribute positively to the earnings of the group for the financial year ending 2018 onwards,” it said in a filing with Bursa Malaysia.
In the case of ILB, it said it had received a conditional letter of acceptance of the RFP bid for the development and operation of a solar photovoltaic plant of 10MW in Bandar Bukit Kayu Hitam, Kedah.
China has some of the biggest solar energy equipment producers in the world. Of late, there have been Malaysian companies teaming up with companies from China to bid for renewable energy jobs.
For instance, on Dec 12, Lejadi Group via its bumiputra construction subsidiary, Lejadi Infra Sdn Bhd, signed a joint-venture agreement with Chinese company Global Solar Co Ltd to jointly bid for engineering, procurement and construction projects of solar and renewable energy plants in Malaysia.