KUALA LUMPUR: Northern Solar Holdings Bhd has secured a RM34mil contract for the engineering, procurement, construction and commissioning (EPCC) of a 9.5-megawatt (MW) solar photovoltaic plant.
In a statement, the group said its wholly-owned subsidiary, Northern Solar Sdn Bhd, accepted the letter of award for the project, which is scheduled to achieve commercial operation by May 1, 2027.
Northern Solar said the project is expected to contribute positively to its earnings and net assets per share from the financial year ending March 31, 2027 onwards.
The identity of the party awarding the contract was not disclosed due to a confidentiality provision.
As at June 30, Northern Solar’s unbilled order book stood at RM189.3mil.
Managing director Lew Shoong Kai said the latest contract would add another large-scale solar project to the group’s portfolio.
“Our priority is to deliver each project to the required specifications and schedule, while maintaining strict discipline on costs, working capital and execution risk,” he said.
Northern Solar said the recent changes to the Corporate Renewable Energy Supply Scheme (Cress), including lower grid-access charges, could support the development of more renewable energy projects.
Additionally, the Cress Acceleration Package announced by the Energy Transition and Water Transformation Ministry in September reduced the system access charge for eligible firm supply to 14 sen per kilowatt-hour from 20 sen and introduced a 10-year contractual period.
“Lower grid-access charges and greater contractual certainty can help developers move projects towards financing and construction.
“As these projects progress, they create additional demand for engineering, construction, and commissioning services,” Lew said.
“Besides, we see clear opportunities to apply our solar EPCC experience across larger projects and solar-plus-storage systems.
“Furthermore, we will remain highly selective, taking on work only where our technical resources, execution capacity, and commercial terms support reliable delivery.”
