Tesco Stores Malaysia enters into largest long-term PPA for solar energy

Rooftop view of Tesco Jitra with partially installed solar PV panels. Tesco Jitra is one of the 15 Tesco stores that will begin generating clean solar energy under a long-term Power Purchase Agreement with NE Suria Satu Sdn Bhd.

Tesco Stores (Malaysia) Sdn Bhd (Tesco) and NE Suria Satu Sdn Bhd (NESS), a joint-venture company of Petronas and NEFIN Group, have entered into the largest long-term Power Purchase Agreement (PPA) (Tesco-NESS PPA) for solar energy in Malaysia.

The first phase of the Tesco-NESS PPA will see the installation of solar photovoltaic (PV) panels on the rooftop spaces of 15 Tesco stores nationwide. The Tesco-NESS PPA will run for 20 years until 2040.

Once the installation is completed in October 2020, the solar PV panels will collectively generate about 18 gigawatt hours (GWh) of clean energy per year, thus reducing approximately 13,624 tonnes of carbon emissions into the atmosphere.

The power generated from the solar PV panels can also light up as many as 104 Olympic-sized stadiums simultaneously or 804,905 three-bedroom homes for an entire year.

“The installation of the solar PV panels in 15 out of 62 of our stores is the first phase in Tesco’s renewable energy push. Eventually, we will be able to generate clean, renewable energy at most of our stores and in the process, reduce our carbon emissions. This push in environmental sustainability is just one of the many ways that we are doing to reduce our impact on the environment, which already includes measuring and publishing our food waste data and reducing the usage of single-use plastic bags in our stores,” said Tesco chief executive officer, Paul Ritchie.

“We are pleased to work with NESS in our first foray into clean renewable energy as the consortium that forms NESS has proven individual track records in delivering and maintaining major projects such as this. We look forward to a long and fruitful partnership with them,” he added.

NESS is a collaboration between Petronas through its New Energy business unit which focuses on providing end-to-end, cost-effective, and sustainable cleaner energy solutions; and NEFIN Group, which is a renowned regional bespoke solar developer and asset management group.

NESS’ director,  Jay Mariyappan, who is also the Head of Petronas New Energy, said: “We are honoured to be awarded Tesco’s first solar project in Malaysia. With the collective capabilities of Petronas and NEFIN, we are confident that we will be able to support Tesco in realising its sustainability goals which ultimately will benefit all of us. This is also in line with our aspiration to be the leading cleaner energy solutions provider.”

NESS will fully invest in the 15 solar PV project, including the design, installation, operation and maintenance of the solar PV systems. NESS has appointed Solarvest as its local Engineering Procurement Construction (EPC) contractor for this project.

The PPA is also in line with  Tesco Group’s goal of becoming a zero-carbon business by 2050.

The stores which will be fitted with the solar PV panels are Tesco Mergong, Tesco Sungai Petani Selatan, Tesco Bukit Mertajam, Tesco Rawang, Tesco Ipoh, Tesco Station 18, Tesco Klang, Tesco Puchong, Tesco Bukit Puchong, Tesco Extra Seremban Jaya, Tesco Kulim, Tesco Stargate, Tesco Seberang Jaya, Tesco Jitra and Tesco Kampar.



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