KUALA LUMPUR (Nov 12): Clean energy specialist Solarvest Holdings Bhd (KL:SLVEST) said its 30%-owned unit Selarong Pertama Energy Sdn Bhd (SPESB) has received approval from Tenaga Nasional Bhd (TNB) (KL:TENAGA) to operate as a merchant generator to sell energy to the single buyer from a 29.99 megawatts (MW) facility to be built in Kulim, Kedah.
SPESB has entered into a new enhanced dispatch agreement (Neda) with TNB on Nov 7 to undertake the project, according to a Tuesday filing by Solarvest.
SPESB is a joint venture between Blazing Solar Sdn Bhd (BSSB), a wholly-owned subsidiary of Solarvest (30%), Savelite Engineering Sdn Bhd (SESB, 40%), and TNB Renewables Sdn Bhd (TRSB, 30%). SESB is a mechanical and electrical engineering firm owned by Keh Chuan seng, Khor Chuan Meng and Chu Kerd Yee, who are also its directors.
Under the Neda connection agreement, SPESB will build, own, operate and maintain a solar photovoltaic energy generating facility with an approved export capacity of 29.99 MW. The renewable energy produced will be sold virtually via a separate Corporate Green Power Agreement (CGPA) to Micron Semiconductor Malaysia Sdn Bhd. TNB agrees to give SPESB the access to TNB’s bulk power network for the supply of the energy generated by the facility.
Based on the CGPA, Micron Semiconductor Malaysia will offtake the renewable energy produced by the facility, along with bundled Renewable Energy Certificates (RECs), for 21 years from the commercial operation date, with a contract for difference mechanisms at an agreed pricing.
Solarvest anticipates positive earnings contributions from the facility once it becomes operational.
Last month, Solarvest’s 70%-owned unit Setia Kawan Energy Sdn Bhd (SKESB) was also approved by TNB to operate as a merchant generator to sell a similar capacity of energy to the single buyer, but from Manjung, Perak. The RE produced from the facility will be sold virtually via four separate CGPAs to Texas Instruments Malaysia Sdn Bhd, Micron Semiconductor Malaysia, Bursa Malaysia Bhd and NTT Global Data Centers CBJ1 Sdn Bhd.
Shares of Solarvest closed unchanged at RM1.63 on Tuesday, valuing the company at RM1.16 billion. Year to date, the stock has gained over 23%.
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Solarvest's 70%-owned unit to operate as merchant generator under Neda
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