SOLAR photovoltaic (PV) and earthing and lightning protection (ELP) specialist Pekat Group Bhd has secured a contract from Sun Estates Sdn Bhd to develop a large-scale solar (LSS) photovoltaic (PV) farm for a value of RM38.3 mil.
The company’s wholly-owned subsidiary Pekat Solar Sdn Bhd (PSSB) has accepted the letter of award from Sun Estates for its appointment as the turnkey engineering, procurement, construction and commissioning (EPCC) contractor for the project.
Sun Estates has also inked a two-year contract with PSSB for the maintenance of the solar PV farm which is expected to be commissioned in December 2023.
Sun Estates’ principal activity is the operation of power generation facilities that produce electric energy. It is 51%-owned by PB Green Farm Sdn Bhd and 49%-owned by Mass Team Industries (M) Sdn Bhd.
Located in Batang Padang (Perak), the 10 megawatt alternating current (MWac) solar PV farm is part of the LSS Bidding Cycle 4 (LSS@MEnTARI) competitive bidding that was conducted by the Energy Commission in 2021.
According to Pekat’s executive director Wee Chek Aik, the latest contract win provides a timely replenishment of the company’s solar EPCC order book to RM209 mil following the completion of its RM33.1 mil EPCC contract for PROTON’s 12 MWp solar PV farm at its Tanjung Malim plant in Perak six months ahead of schedule.
“Pekat’s expertise is becoming increasingly relevant at a time when more and more organisations are becoming carbon-conscious and are seeking to adopt clean renewable energy (RE),” he pointed out.
“Solar energy provides the much needed alternative for companies to manage their long-term energy costs especially in light of the current global energy crunch which has been triggered by rising demand in clean energy, under-investment and geopolitical tensions resulting in the surge in energy prices.”
Moreover, with prices of coal to oil & gas (O&G) having more than doubled in the last two years, the cost of generating electricity from such fuels have escalated with domestic electricity tariff been adversely impacted.
“However, notwithstanding the cost challenges arising from the global supply chain disruptions, we are optimistic of our growth prospects in the RE space moving forward,” added Wee.
The contract is expected to contribute positively to the net assets and earnings of Pekat Group upon completion of the project.
At the close of today’s trading, Pekat Group was down 0.5 sen or 0.71% to 69.5 sen with 6.75 million shares traded, thus valuing the company at RM448 mil. – April 7, 2022
