KUALA LUMPUR (Jan 17): Civil engineering and construction services provider Zecon Bhd (KL:ZECON) has signed a renewable energy power purchase agreement (REPPA) with Universiti Kebangsaan Malaysia (UKM), marking the beginning of the group’s first solar photovoltaic (PV) project.

Under the terms of the agreement, its subsidiary Zecon Medicare Sdn Bhd (ZMC) will generate, deliver and sell renewable electricity produced by a 2MW rooftop solar PV system at Hospital Tunku Ampuan Besar Tuanku Aishah Rohani (HosTAR), UKM's specialist children's hospital. The value of the project was not disclosed.

"The renewable electricity generated will play an important role in powering HosTAR’s operations and reducing its environmental impact,” said Zecon corporate general manager Brandon Goh said in a statement on Friday. 

Under the project, ZMC will incorporate solar panels on the rooftop of the main hospital building and multi-level car park at HosTAR, covering an area of approximately 13,172 square metres, that will output an estimated 58 million kWh of green energy over the course of 22 years, at an annual average output of 2.6 million kWh.

 ZMC will be responsible for the full development lifecycle of the project, including the design, financing, installation, procurement, construction, testing, commissioning, insurance, operation and maintenance.

The solar system is set to be fully operational by the end of 2025, with commercial operations starting in about 18 months from the date of the agreement. 

Shares in Zecon closed unchanged at 47 sen on Friday, giving the company a market value of RM68.94 million.