KUALA LUMPUR (Oct 17): Solarvest Holdings Bhd (KL:SLVEST) said its associate company SM01 Sdn Bhd has received approval from Tenaga Nasional Bhd (KL:TENAGA) to operate a 29.99 MWac solar photovoltaic (PV) energy generating facility.

In a bourse filing, Solarvest said SM01 on Friday received the signed New Enhanced Dispatch Arrangement (NEDA) connection agreement from Tenaga.

SM01 was established as an SPV solely to undertake the project under the Corporate Green Power Programme (CGPP).

The renewable energy produced will be sold virtually via a separate Corporate Green Power Agreement (CGPA) to Pearl Computing Malaysia Sdn Bhd.

The company is 49%-owned by Shizen Malaysia Sdn Bhd, 33% by Solarvest Asset Management Sdn Bhd and 18% by HSS Engineering Sdn Bhd, a unit of HSS Engineers Bhd (KL:HSSEB).

“Pursuant to the implementation of the NEDA Guidelines by the Energy Commission and the signing of the NEDA Connection Agreement, and subject to SM01 satisfying the conditions under such guidelines, TNB agrees to grant SM01 access to its bulk power network for the supply of energy generated by the facility,” Solarvest said.

“Throughout the term of the CGPA, the corporate consumer 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,” it added.

Shares of Solarvest slipped five sen or 1.56% to close at RM3.15 on Friday, giving it a market capitalisation of RM2.66 billion. The counter, however, has surged over 85% year to date.