KUALA LUMPUR (April 12): Electrical and mechanical engineering services provider Kejuruteraan Asastera Bhd (KAB) has inked a power purchase agreement (PPA) with Mydin Mohamed Holdings Bhd for a solar photovoltaic (PV) system on the latter’s Mydin Tunjong Hypermarket in Kelantan.
In a statement on Tuesday (April 12), KAB said the PPA was signed between its wholly-owned subsidiary KAB Gree Solar Sdn Bhd and Mydin for the former’s unit to design, construct, install, own, operate and maintain a grid-connected solar PV energy system on the roof of the latter’s open car park of Mydin Tunjong Hypermarket.
Pursuant to the PPA, KAB is to generate and supply solar PV energy to Mydin for a 21-year period, commencing from the commercial operation date.
KAB said that under Phase 1 of the PPA, the group will provide Mydin with up to 2,041.65 kWp (kilowatt-peak) installed capacity of solar electricity in total throughout the term of the agreement.
“Mydin is expected to generate approximately 66 million kWh (kilowatt-hour) in energy savings and approximately 38,650 tonnes of carbon dioxide equivalent are avoided over a 21-year period,” it added.
Additionally, KAB said it is to develop a further 2,064.4 kWp capacity under Phase 2 of the same project, once the terms and implementation timeline are finalised.
On July 26 last year, KAB received a letter of award from Mydin to invest and develop a 4,000 kWp solar rooftop system for the latter’s own consumption for its outlet in Tunjong, Kelantan, which spans over one million square feet of retail space.
KAB said the agreement is fully aligned with its long-term strategy to develop renewable energy assets as one of its key growth drivers.
KAB managing director Datuk Lai Keng Onn said the group and Mydin have been working together on the project for more than a year.
With the PPA in place, it is able to support Mydin’s commitment which emphasises the importance of a sustainable operating environment.
“This long-term contract with such a committed retailer is in sync with our strategy of engaging with organisations that share the same value.
“KAB has been building our renewable energy portfolio in Vietnam, Indonesia and Thailand, so we are always excited to be able to do the same back here [in Malaysia],” Lai said.
At noon break on Tuesday, KAB’s share price was down half a sen or 1.16% to 42.5 sen, giving the group a market capitalisation of RM755.46 million.