Vsolar ends JV with UTM on solar energy due to poor returns

Credit Suisse Group AG has emerged as a subtantial shareholder in loss-making Vsolar Group Bhd with a 5.08% stake.

KUALA LUMPUR: Vsolar Group Bhd and Universiti Teknologi Malaysia (UTM) mutually terminated their joint venture to develop solar energy facilities due to the poor rates of returns.

Vsolar, which is involved in solar renewable energy, announced on Thursday both parties decided on the termination based on the financial viability of the proposed project.

“Our financial assessment of the proposed tariffs potentially to be awarded by the regulators indicated poor rates of return on our potential investment,” it said.

On April 11, 2017, the company said the JV – in which it would hold 80% and UTM 20% – would develop the facilities with a capacity of up to 30 megawatts.

The JV was also to undertake research and development on solar energy generation technology and solar plant installation and construction design.

The project was to have been built on a site of about 20 acres for every 10 MW to be identified and provided by UTM.