Solarvest Holdings Bhd (KL) has announced that its 70%-owned subsidiary, Setia Kawan Energy Sdn Bhd (SKESB), has received approval from Tenaga Nasional Bhd (TNB) (KL) to operate as a merchant generator. SKESB will sell energy to the single buyer, with a capacity of 29.99 megawatts (MW) located in Manjung, Perak.
In a filing with Bursa Malaysia on Wednesday, Solarvest stated that SKESB entered into a new enhanced dispatch agreement (Neda) with TNB on October 28. TNB Renewables Sdn Bhd holds the remaining 30% of SKESB.
The Neda connection agreement allows SKESB to operate and maintain a solar photovoltaic energy generating facility with an export capacity of 29.99 MW. The renewable energy (RE) produced will be sold through four separate corporate green power agreements (CGPAs) to Texas Instruments Malaysia Sdn Bhd, Micron Semiconductor Malaysia Sdn Bhd, Bursa Malaysia Bhd, and NTT Global Data Centers CBJ1 Sdn Bhd.
TNB will provide SKESB access to its bulk power network for the energy generated by the facility. Over the term of the CGPAs, these corporate consumers will purchase the RE produced, along with renewable energy certificates, for 21 years from the start of commercial operations, using a contract for difference mechanism at an agreed price.
Solarvest noted that the signing of the Neda connection agreement is not expected to impact the group’s net assets or earnings for the financial year ending March 31, 2025. However, the group anticipates positive earnings contributions from the facility once it begins commercial operations for the next 21 years.
At noon on Wednesday, Solarvest shares closed at RM1.59, down one sen or 0.6%, with a market capitalization of RM1.13 billion. The stock has increased by 20.45% this year.
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