KUALA LUMPUR: Solarvest Holdings Bhd
and Press Metal Aluminium Holdings Bhd’s special purpose vehicle, Mukah Solar Powerplant Sdn Bhd (MSPSB), has signed a RM380 million power purchase agreement (PPA) with Sarawak state-owned Syarikat SESCO Bhd.
The agreement is for the development of a 100 megawatt alternating current (MWac) solar photovoltaic (PV) plant in Mukah.
In separate filings to Bursa Malaysia today, both companies said Solarvest holds a 60 per cent stake in MSPSB, with the remaining 40 per cent owned by Press Metal. The agreement has a 30-year tenure.
"The PPA provides MSPSB with long-term revenue visibility, while strengthening Press Metal’s position in renewable energy and supporting its goal of achieving net-zero emissions by 2050.
"In addition, the proposed project is a step towards Sarawak’s 10 gigawatt (GW) renewable target by 2030 and Malaysia’s National Energy Transition Roadmap (NETR) vision of 70 per cent renewable capacity by 2050, reinforcing our shared commitment to sustainable development and energy transition,” Press Metal said.
Meanwhile, Solarvest said it does not foresee any exceptional risks beyond normal operational risks associated with the PPA and the facility, adding that it will take necessary steps to mitigate such risks as they arise.
"The board of directors of the company is of the opinion that the execution of the PPA is in the best interest of Solarvest,” it said.
Both companies also noted that the project will be mainly financed through bank borrowings, with the equity portion funded internally. Commercial operations are scheduled to begin on Nov 30, 2027.
The PPA remains subject to approvals from the Sarawak State Planning Authority and the Department of Environment, as well as the signing of a site agreement.
Separately, Malakoff Corporation Bhd announced that its 70 per cent-owned subsidiary, Malakoff Evergreen Sdn Bhd, has signed a 30-year PPA with SESCO for a 100MWac solar PV project in Bintulu, which is expected to begin operations on May 1, 2028.
"The signing of the PPA is not expected to have any material impact on the net assets and earnings of Malakoff for the financial year ending Dec 31, 2025.
"However, the company expects positive future earnings contribution from the facility from the commercial operation date over the 30 years,” it added. - Bernama
