HSS Engineers Berhad is set to kickstart its recurring income stream, as its wholly-owned subsidiary HSS Engineering Sdn Bhd (HSSE) together with consortium partners Shizen International Inc (Shizen), Solarvest Asset Management Sdn Bhd and Aziho Trading Sdn Bhd accepted a Letter of Notification from the Energy Commission (Suruhanjaya Tenaga) offering the Consortium to develop a 29.99 Megawatt (MW) Solar PV Plant (The Project) in Kuala Muda, Kedah.
HSSE owns 10% ordinary shares in the Consortium. The Project involves the proposed development, financing, construction, ownership, operation and maintenance of the PV Plant on a build, operate and transfer basis. The estimated Commercial Operation Date of the PV Plant is December 2025. Apart from the above, HSSE will also be involved in the Engineering Design and Project Management Services for the project.
The development of the Project is contingent upon the Consortium fulfilling two conditions. Firstly, the execution of a virtual power purchase agreement with a corporate consumer to commit to purchase the virtual solar energy under the Project for 20 years, and secondly, the approval from the Suruhanjaya Tenaga with regards to the Consortium’s application under the New Enhanced Dispatch Arrangement.
The Project is undertaken pursuant to the Corporate Green Power Programme, an initiative by the Government of Malaysia for business entities to participate in the promotion and use of renewable energy in their business operations.
This Project comes within a year of HSS signing a Memorandum of Understanding (“MOU”) with Fukuoka-based renewable energy company Shizen in September 2022. Under the agreement, both companies agreed to jointly explore developing solar projects for cumulative capacity of up to 250 MW within three years of signing the MOU.
Tan Sri Ir. Kuna Sittampalam, Executive Vice Chairman of HSS Engineers Berhad said, “We are very proud to secure a momentous breakthrough in establishing our fourth vertical of recurring income, which would provide us with longer-term sight on future earnings.
Moreover, this venture launches the Group significantly forward in the renewable energy space, where the upcoming solar PV plant would generate clean energy to support the growing number of electricity consumers that aspire to achieve the ESG target.”
“We believe this is a significant stepping stone for HEB Group in line with our overall growth strategy of diversifying our sector coverage and revenue sources, and providing greater sustainability to our business which will bring great benefits to all our stakeholders.
Together with our highly-capable strategic partners including Japan-based Shizen, we are indeed playing a pivotal role in assisting Malaysia achieve its greenhouse gas emission intensity, en route to becoming carbon neutral.”
