Kenanga Research forecasts at least RM5bil worth of PV system EPCC jobs from the LSS5 programme.
PETALING JAYA: Kenanga Research anticipates the renewable energy (RE) sector to see billions of ringgit of investments in the next two years, mainly in solar-based generation assets.
The research house noted that solar photovoltaic (PV) system engineering, procurement, construction and commissioning (EPCC) contractors like Solarvest Holdings Bhd
and Samaiden Group Bhd could be the major gainers from the execution of various contracts under the Corporate Green Power Programme (CGPP), which is estimated to be worth RM2.4bil, as well as the two gigawatts (GW) large-scale solar five (LSS5) that is worth another RM5bil, not to mention the additional quota of 500 megawatts (MW) on offer under the net energy metering (NEM) scheme.
In the near term, Kenanga Research expects PV system EPCC jobs will come from the CGPP with a completion deadline by end-2025.
Kenanga Research forecasts at least RM5bil worth of PV system EPCC jobs from the LSS5 programme. It also highlighted opportunities from the NEM initiative, where an additional quota of 500MW (residential: 200MW, commercial: 300MW) are on offer and encourage investments in solar-based assets.
The residential sector, which is significantly untapped, could get a boost from the Solar For Rakyat Incentive Scheme using 100MW worth of NEM quota for the residential segment.
It added that there is a growing market for RE certificates from corporations committed to the RE100 initiative (the goal of using renewable resources for one’s all energy needs) as well as data centres to achieve the “green” status.
It is overweight on the sector with an “outperform” call on its top picks Solarvest, with a target price (TP) of RM1.91 a share and Samaiden with a TP of RM1.51.
