BALING (Sept 3): MBSB Bank Bhd has allocated RM78 million in shariah-compliant financing to solar energy projects at 32 Syarikat Air Darul Aman (SADA) facilities in Kedah.

The financing will support a project carried out by Dekad Aliran Sdn Bhd, with a total solar energy capacity of up to 22 megawatts (MW) to be generated by the end of 2027.

MBSB chief executive officer Rafe Haneef said the financing reflects the role of shariah-compliant financing in accelerating the transformation of public infrastructure towards more sustainable energy use.

"Through financing infrastructure transformation projects like this, we help bridge the gap between the country's aspirations towards decarbonisation and actual implementation on the ground.

"This transaction also demonstrates how shariah-compliant financing can act as a catalyst for a more sustainable transition in the country's key sectors," he said in a statement on Friday.

He added that MBSB’s financing structure allows the project to be implemented without initial capital expenditure by SADA, enabling the state water company to benefit from energy savings without incurring significant investment costs at the initial stage.

The statement said that the project allows SADA to generate clean energy at its water treatment plants (WTP), reducing dependence on conventional electricity supply and helping to stabilise energy costs in the long term.

The first phase of the project involves an investment of RM5.77 million to install a total of 2,500 solar panels at three treatment plants: the new Kuala Ketil WTP, the old Kuala Ketil WTP and the Sungai Ular WTP.

The initial phase is expected to generate approximately 200,000 kilowatt-hours (kWh) of net energy per year, in addition to providing monthly electricity bill savings of up to 15%.

The project is expected to provide energy cost stability for up to 30 years and reduce carbon dioxide emissions by 1,100 tonnes per year, equivalent to planting approximately 50,000 trees per year.

SADA's chief executive officer, Datuk Radzuan Osman, said the installation of solar systems at 32 facilities opens a new dimension to water treatment operations. 

"This collaboration allows us to improve operational efficiency, better plan energy costs for the long term, and directly contribute to efforts to tackle climate change.

"At the same time, it strengthens our ability to continue providing quality and sustainable water supply to the people of Kedah," he added.

Uploaded by Syed Azahedi