ELECTRICAL and mechanical engineering services provider Kejuruteraan Asastera Bhd (KAB) will help Mydin Mall Tunjong in Kelantan – the largest Mydin mall in Malaysia – embrace renewable energy.
Through its wholly owned subsidiary KAB Smart Solar Energy Sdn Bhd (KSSE), KAB has received a letter of award (LOA) from Mydin Wholesale Emporium Sdn Bhd to install a grid connected photovoltaic (PV) solar system for the said Mydin Mall.
To be installed in phases, the solar system with an estimated capacity of 4,000-kilowatt (KW) peak is scheduled to achieve commercial operation date (COD) by 3Q 2022.
Designed to generate approximately 142 million-KW hours of renewable electricity, this project is expected to reduce energy cost by approximately RM50 mil and neutralise 33,105 tonnes of carbon dioxide emission over 25 years.
At the same time, KAB also inked a principal term sheet agreement with FT Hose & Hose Sdn Bhd which involves the installation of two solar systems in Ipoh (Perak) with 521-KW peak and 450-KW peak respectively (971-KW-peak installed capacity).
This agreement has been in effect and COD is scheduled by 3Q 2022. The solar systems at these two locations are expected to generate around 32 million KW hours of renewable electricity, thus reducing energy cost by circa RM15 mil and neutralising 7,460 tonnes of carbon dioxide over 25 years.
“Under the LOA and the agreement, KSSE or any of its nominated subsidiary is the legal owner of the solar systems,” KAB pointed out.
“Through the power purchase agreements (PPA) to be executed between the parties, Mydin Wholesale Emporium and FT Hose are obligated to pay KSSE for the electricity generated in accordance with the agreed solar energy rate stated in the LOA and term sheet agreement for a period of 21 years.”
KAB managing director Datuk Lai Keng Onn noted that the group look forward to create a positive impact with Mydin Wholesale Emporium and FT Hose by promoting initiatives towards a sustainable development.
“We are determined to rapidly grow our business in the area of green energy solutions and support Malaysia’s commitment to achieve 20% renewable energy usage in its energy mix by 2025,” he enthused.
“From a business perspective, these PPAs are also beneficial to us as it will continue to provide us with a stable long-term recurring income.”
To date, KAB has a combined installed capacity of 10,463-KW peak PV solar systems which include the recent PPAs signed with Tanaosree Thai Chicken Co Ltd, Aapico PCL and Roongthavorn Plastic Co Ltd.
These PPAs augur well for KAB and will continue to generate sustainable recurring income for the next 25 years in line with the group’s strategic business direction.
At the close of today’s mid-day trading, KAB was down 3 sen or 3.33% to 87 sen with 24.07 million shares traded, thus valuing the company at RM1.47 bil. – July 26, 2021
