KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) will install a grid connected photovoltaic solar system for the Mydin Mall Tunjong in Kelantan with an estimated capacity of 4,000-kilowatt peak.
KAB, an electrical and mechanical engineering services provider, said its unit KAB Smart Solar Energy Sdn Bhd had received a letter of award from Mydin Wholesale Emporium Sdn Bhd.
Under the contract, KAB will install the solar system at the mall, the largest Mydin mall in Malaysia and it is scheduled to achieve commercial operation date by the third quarter of 2022.
This project is expected to reduce energy cost by about RM50mil and neutralise 33,105 tonnes of carbon dioxide emission over 25 years, which will generate about 142 million-kilowatt hours of renewable electricity.
Under a second contract, KAB inked a principal term sheet agreement with FT Hose & Hose Sdn Bhd which involves the installation of two solar systems in Ipoh.
The two systems will have 521-kilowatt peak and 450-kilowatt peak respectively, giving a total of 971-kilowatt-peak installed capacity. Commercial operation date is scheduled by the third quarter of 2022.
The solar systems at these two locations are expected to generate about 32 million-kilowatt hours of renewable electricity, reduce energy cost by RM15mil and neutralise 7,460 tonnes of carbon dioxide over 25 years.
Under the power purchase agreement, Mydin Wholesale Emporium and FT Hose are obligated to pay KAB Smart Solar Energy for the electricity generated under the agreed solar energy rate for 21 years.
KAB managing director Datuk Lai Keng Onn was confident these initiatives will pave the way for all parties to operate sustainably for the future generation.
“These solar systems will help reduce the carbon footprint while generating green energy at lower cost.
“We look forward to create a positive impact with Mydin Wholesale Emporium and FT Hose by promoting initiatives towards a sustainable development.
“We are determined to rapidly grow our business in the area of green energy solutions and support Malaysia’s commitment to achieve 20% renewable energy usage in its energy mix by 2025.
“From a business perspective, these PPAs are also beneficial to us as it will continue to provide us with a stable long-term recurring income,” Lai said.
To date, KAB has a combined installed capacity of 10,463-kilowatt peak photovoltaic solar systems, which include the recent power purchase agreements signed with Tanaosree Thai Chicken Co Ltd, Aapico PCL and Roongthavorn Plastic Co Ltd.
“These power purchase agreements augur well for KAB and will continue to generate sustainable recurring income for the next 25 years, in line with the group’s strategic business direction,” he added.