MAJUPERAK Holdings Bhd (MHB) is proposing a joint venture (JV) with United Solar Energy (Malaysia) Sdn Bhd (USEM) in a solar photovoltaic generating system (SPS) project in Perak.
Its wholly-owned subsidiary, Majuperak Power Resources Sdn Bhd, signed the JV agreement today with the solar photovoltaic solution provider to market and propose SPS utilising the net energy metering scheme for buildings in the state.
The agreement is conditional on USEM executing at least one supply agreement for renewable energy (SARE) secured contract with Tenaga Nasional Bhd and electricity consumers within the next six months, MHB said in a filing with Bursa Malaysia today.
The company, which is majority owned by the Perak government, said on securing the first SARE contract, the parties would set up a special purpose vehicle which would be 40% owned by MHB and 60% by USEM.
In a press statement, MHB chief executive officer Nizran Noordin said the agreement was an opportunity for the company to tap into the growing prospects of the renewable energy sector, particularly as the solar energy segment holds vast potential.
“This is also aligned with the government’s National Renewable Energy Policy target to achieve 20% electricity generation from renewable energy sources by 2025. By embarking on the SPS project in partnership with USEM, we will be able to leverage on our combined expertise to benefit electricity consumers throughout Perak.
“The annual cost savings of approximately between 5% and 15% from the SPS will also be channelled back to the people of Perak and the state government,” he added.
MHB said USEM would obtain the necessary approvals and licences from the Sustainable Energy Development Authority and other relevant local authorities to start with the SPS project.
It said consent would also be secured from respective building owners and electricity consumers for a tripartite SARE. -- April 6, 2020, Bernama