KUALA LUMPUR (Dec 17): Destini Bhd says it has secured its first solar project from Indah Water Konsortium Sdn Bhd (IWK) for the engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems at 1,177 IWK sewerage treatment plants across Malaysia.

In a statement, Destini said it will bear the EPCC cost of the solar PV systems. In return, IWK will buy the electricity generated from these systems from Destini, based on a fixed discounted tariff for the next 20 years. Hence, a power purchase agreement is part of the deal.

With the installation of the solar photovoltaic systems at its facilities, Destini said IWK is anticipated to save a minimum average of 10% on electricity cost on its 1,177 sewerage treatment plants throughout the contract period.

Destini said the project, which will be carried out by its wholly-owned Destini Energy Sdn Bhd, allows the group to diversify and expand its capabilities into the renewable energy segment.

"The group's entry into the renewable energy segment is also part of the group’s long-term sustainability plan, which includes the adoption of the environmental, social and governance (ESG) values that are an increasingly important criterion for sustainable growth," it said.

It also noted that its diversification into the renewable energy segment is in line with the government’s plan to implement green technologies to reduce carbon emissions to 45% by 2030.

"In recognition of the growing demand and direction towards renewable energy, Destini aims to position itself as a major player in the industry.

"Apart from this project, Destini is actively exploring opportunities to secure additional concessionary renewable energy projects in Malaysia. As such, this new business segment is expected to expand the group's earnings base and provide a long-term stable stream of revenue and cash flow," it added.

Destini shares rose 5.13% or one sen to settle at 20.5 sen on Friday (Dec 17), valuing the group at RM341.02 million.