AT Systematization signs MoU with Vsolar for solar PV rooftop project

AT Systematization signs MoU with Vsolar for solar PV rooftop project

23 Oct 2020

AT Systematization Bhd’s wholly-owned unit, AT Glove Engineering Sdn Bhd (AGESB), has entered into a memorandum of understanding (MoU) with Vsolar Group Bhd to spearhead the solar photovoltaic (PV) rooftop project at its glove manufacturing plant at Chemor Ceramic Industrial Park in Perak.

In a filing with Bursa Malaysia today, it said the MoU was valid from Oct 23, 2020, to June 30, 2021, unless superseded by a corporate power purchase agreement (CPPA) to be entered into by the parties.

“AGESB will appoint Vsolar as the engineering procurement construction consultant (EPCC) to build, construct, manage and maintain the installation of a solar PV rooftop system at AGESB’s glove manufacturing factory site on a leasing arrangement through a formal CPPA to be signed by both parties later stage,” it said.

It said under the MoU, both parties had agreed to participate in a CPPA for the leasing of an about 1 megawatt (MW) of solar PV rooftop system with a tenure of 15 years only.

“In addition, actual tariff price to be paid from first party (AGESB) to second party (Vsolar) will be mutually agreed and reflected in the CPPA once executed,” it said.

AT Systematization said both parties also agreed with total upfront cost for the project to be borne by second party whereby the cost would be recuperated over the tenure of the lease through net energy metering initiative introduced by Sustainable Energy Development Authority (SEDA) in January 2019 based on tariff price to be agreed and highlighted in the CPPA.

It added that the first party would be eligible for the Investment Tax Allowance by the Malaysian Investment Development Authority under the Green Technology Incentive, Income Tax Act 1967

Source: BernamaPosted on : 23 October 2020