MK Land diversifies into renewable energy - MIDA | Malaysian Investment Development Authority
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MK Land diversifies into renewable energy

MK Land diversifies into renewable energy

15 Jul 2022

 Property developer MK Land Holdings Bhd is diversifying into renewable energy with the development of a 10.95-megawatt (MW) large-scale solar photovoltaic (PV) plant in Kerian, Perak.

In a statement on Friday (July 15), the company said it has appointed Solarvest Holdings Bhd as the engineering, procurement, construction, and commissioning (EPCC) solutions provider for the project.

MK Land said the solar PV plant is part of the fourth cycle of the large-scale solar (LSS4) programme awarded by the Energy Commission.

It said the project is undertaken by Solar Citra Sdn Bhd (SCSB), a wholly-owned subsidiary of M K Land Resources Sdn Bhd, which in turn is a unit of MK Land.

In July 2021, SCSB awarded the EPCC contract to Atlantic Blue Sdn Bhd, a unit of Solarvest, for RM42.9 million.

MK Land then signed a solar power purchase agreement with Tenaga Nasional Bhd in August 2021 for a period of 21 years upon the site’s commissioning on Dec 30, 2022.

MK Land deputy chief operating officer Kamarulzaman Abu Bakar said the new solar PV plant will strengthen the earnings visibility of the company due to its recurring nature, in this case, for the next 21 years.

“Apart from the monetary benefits, we are also proud to now call ourselves an active participant in this race against global warming,” he said.

He said the solar PV plant is projected to generate a clean energy capacity of approximately 22,735 MW-hour per annum.

Meanwhile, Solarvest executive director and group chief executive officer Davis Chong Chun Shiong said with the implementation of their cutting-edge engineering solutions and project management prowess, the company is confident of maximising the energy yield of the plant in a cost-effective manner, as well as ensuring timely delivery.

The project is one of the eight EPCC contracts secured by Solarvest under the LSS4 programme.

Apart from that, the company is also developing three large-scale solar PV plants with an accumulated capacity of 50 MW, which it will own and operate.

“With a grand total of eight EPCC contracts and three self-owned projects clinched under the LSS4 programme, Solarvest is proud to be at the forefront of Malaysia’s bid to achieve a 31% renewable energy mix by 2025.

“Our role in building and developing renewable energy assets across the peninsula also contributes to the nation’s aspiration of reaching carbon neutrality by 2050,” said Chong.

At 11.19am on Friday, MK Land’s share price fell 3.45% or 0.5 sen to 14 sen with 13,000 shares done.

Source: The Edge Markets