SUSTAINABLE energy solutions provider Kinergy Advancement Bhd has inked a corporate virtual power purchase agreement (VPPA) with global aerospace leader Safran Landing Systems Malaysia Sdn Bhd.
Executed through its key energy subsidiary KAB Energy Holdings Sdn Bhd, the deal sets a new benchmark in the Energy Commission (EC)-initiated Corporate Green Power Programme (CGPP) by utilising hydropower assets to facilitate emission offsets.
The contract covers the generation of renewable electricity (RE) with an annual output of between 80 and 108 gigawatt-hours (GWh) over a tenure of 21 years from the commercial operation date with an extension option.
Through this structure, KINERGY can support Safran’s green index objectives and setting a scalable model for corporates to procure baseload green energy in line with internationally recognised reporting standards.
Historically, corporate green energy procurement in Malaysia has been solar-focused under programmes such as the CGPP. KINERGY has participated as a solar producer in this space with Safran serving as the off-taker through a long-standing partnership since 2017.
From solar to hydropower
Safran’s operations are integrated with Malaysia’s only Organic Rankine Cycle (ORC) waste heat recovery facility which KINERGY has operated since its commercial commissioning in 2020.
However, this agreement pushes new frontiers by introducing hydropower as a dispatchable and reliable renewable source within a VPPA framework, thus broadening the range of clean energy solutions available to corporate off-takers seeking firm and scalable green power.
“We realised that many multinational corporations in Malaysia want to go green faster than the physical infrastructure allows,” observed KINERGY’s group managing director Datuk Lai Keng Onn.
“By executing this hydropower-anchored VPPA with Safran, we demonstrate an on-going commitment to growth and continuity by building on previous RE initiatives.”
Unlike a conventional physical power purchase agreement, a virtual PPA is a financial contract linked to RE generation.
Through this mechanism, KINERGY is able to deliver RE into the national grid while the corporate consumer secures the associated environmental attributes together with a financial hedge tied to the renewable output.
“We’re delivering the ‘green value’ of stable, baseload energy directly to a top-tier partner like Safran,” enthused Lai who is also KINERGY’s executive deputy chairman.
“Safran’s Malaysian operations have already achieved an estimated 27% net reduction in emissions compared with their 2018 baseline, supported by on-site solar installations, waste-energy utilisation and efficiency upgrades at its Sendayan Techvalley facility.”
Added Lai: “This VPPA adds a further layer to both groups’ pursuit of scalable RE coverage and validates our technical capabilities in supporting the energy transition and optimising value for Safran.
“This also proves that we’re not just an asset owner but are also a solution provider capable of navigating complex market mechanisms to create value.”
With more than 6GW of installed hydropower capacity which accounted to sone 16% to 17% of national generation, this hydropower-anchored VPPA demonstrates how growth in RE through hydro assets can be leveraged to meet rising ESG expectations among foreign investors in Malaysia.
At 4.23pm, KINERGY was unchanged at 37.5 sen with 2.14 million shares traded, this valuing the company at RM819 mil. – Feb 9, 2026
