Advancecon inks agreement with TNB to build and operate solar PV facility

Advancecon inks agreement with TNB to build and operate solar PV facility

20 Aug 2021

Civil engineering and infrastructure group Advancecon Holdings Bhd’s indirect wholly-owned subsidiary LSS TPG Sdn Bhd has signed a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) to build and operate a solar photovoltaic (PV) energy-generating facility.

In a statement today, Advancecon said LSS TPG will design, construct, own, operate and maintain the solar PV energy-generating facility with a capacity of 26 megawatts of alternative current (MWac) in Kuala Langat, Selangor, which will be connected to TNB’s medium voltage distribution network at 33 kilovolts (kV) transmission main intake (PMU) Teluk Panglima Garang.

“LSS TPG targets commercial operations of its solar PV energy-generating facility on Nov 30, 2023 and contribute positively to future earnings of the group,” it added.

Advancecon group chief executive officer (CEO) Datuk Phum Ang Kia said that the PPA with TNB is a positive step forward in the group’s renewable energy venture, particularly to build its recurring income stream.

“This agreement adds to our ongoing rooftop solar PV system under the Net Energy Metering (NEM) for commercial premises, which has begun to contribute revenues since early-2021.

“In this way, we are also doing our part to help Malaysia’s renewable energy goal, in tandem with the ASEAN region’s target to have renewable energy constitute 35% of installed power capacity by 2025.

“We believe that green energy will continue to be a part of a longer-term sustainability goal, which will result in climate-positive benefits for the country,” he added.

Advancecon closed half a sen or 1.56% higher at 32.5 sen, valuing the group at RM135.14 million.

Source: The Edge Markets