Solar photovoltaic system specialist, Solarvest Holdings Berhad (Solarvest) is among the successful bidders in the LSS@Mentari programme shortlisted to provide cumulative capacity of 50 megawatts (MW) of solar-powered electricity via three large-scale solar farms.
Solarvest was shortlisted via its wholly-owned Atlantic Blue Sdn. Bhd. and was announced last Friday [March 12] by the Energy Commission.
Recently, the group raised a total of RM38.7 million from the issuance and private placement of 32.0 million new shares at an issue price of RM1.21 per share, which boosted cash in hands to RM80.3 million.
“We believe our investments in solar assets will yield attractive returns as the cost of construction will be relatively controlled given that we will be constructing the power plants ourselves.
In addition to rising domestic demand, we are seeing utility companies joining force to pave ways for cross-border electricity distribution, hence, we believe the export of clean energy will be the next key driver for growth in Malaysia,” Group Chief Executive Officer (GCEO) of Solarvest, Davis Chong Chun Shiong said.
Upon completion of the solar plants, Solarvest expects an earnings contribution of approximately RM8 to 9 million annually from the solar farms.
This recurring income will contribute positively to the financial performance of Solarvest during the entire tenure of the 21-year power purchase agreement which is expected until year 2043.
“Our aim is to expand our solar asset portfolio to be one third of the Group’s total revenue in three to five years,” he added.
Among the three shortlisted bids, the largest solar farm has a capacity of 25MW which will be based in Manjung, Perak. This is followed by a 13MW solar farm to be constructed in Kuala Selangor and another 12MW solar farm in Manjung, Perak.
Additionally, Solarvest is bidding for Engineering, Procurement, Construction and Commissioning (EPCC) projects from other successful bidders in the LSS@Mentari programme.
Among the shortlisted bidders are Advancecon Solar Sdn. Bhd, ATK Development Sdn. Bhd. and Suria Takbir Construction Sdn. Bhd., and Taiping Solar Sdn. Bhd.
