Destini Berhad secured its first solar project from Indah Water Konsortium Sdn Bhd, making its mark in the renewable energy landscape with the engineering, procurement, construction, and commissioning of solar photovoltaic systems at 1,177 IWK sewerage treatment plants across Malaysia.
In addition to the EPCC of the solar photovoltaic systems of which the cost will be borne by Destini, this project includes a Power Purchase Agreement where IWK will buy the electricity generated from the solar photovoltaic systems installed by Destini based on a fixed discounted tariff for the next 20 years. Energy cost is a major operating expenditure component for the national sewerage company with the installation of the solar photovoltaic systems at its facilities, IWK is anticipated to save a minimum average of 10% on electricity cost on its 1,177 sewerage treatment plants throughout the contract period.
This project, which will be carried out by the Group’s wholly-owned subsidiary, Destini Energy Sdn Bhd, will allow the Group to diversify and expand its capabilities into the renewable energy segment.
Destini’s diversification into renewable energy segment is in line with the Government’s plan to implement green technologies to reduce carbon emissions to 45% by 2030. In addition, this project is aimed to promote the development of the local renewable energy industry while creating employment opportunities.
Apart from this project, Destini is actively exploring opportunities to secure additional concessionary renewable energy projects in Malaysia. As such, this new business segment of Destini is expected to expand the Group’s earnings base and provide a long-term stable stream of revenue and cash flow position.
