Solarvest Holdings Berhad, a key player in the clean energy sector, has recently secured five separate Corporate Green Power Agreements (CGPAs).
These agreements involve a Malaysian multi-asset exchange, two leading global semiconductor manufacturers, and a prominent global data center service provider, collectively referred to as corporate consumers.
The agreements fall under the Corporate Green Power Programme (CGPP) and reflect the growing commitment to sustainable energy solutions.
Partnership and Development
Solarvest has entered into these agreements through two distinct joint ventures. The first venture includes collaborations with Savelite Engineering Sdn. Bhd. and TNB Renewables Sdn. Bhd., while the second is solely with TNB Renewables Sdn. Bhd.
Under these CGPAs, Solarvest, along with its partners, will own and develop two solar power plants. These plants will be located in Lumut, Perak, and Kulim, Kedah.
The corporate consumers involved will collectively purchase 59.98 MW of electricity generated from these solar plants over a 21-year period, with the terms defined by a contract-for-difference pricing mechanism.
Government Commitment and Corporate Benefits
The Corporate Green Power Programme (CGPP) underscores the Malaysian government’s dedication to facilitating the country’s energy transition.
Through the CGPA framework, the CGPP enables corporations to procure virtual renewable electricity without needing to install solar photovoltaic systems on their properties.
By participating in this programme, corporate consumers receive bundled Renewable Energy Certificates (RECs), which verify the renewable origin of the electricity and support their sustainability objectives.
Statements from Key Figures
Davis Chong Chun Shiong, Executive Director and Group CEO of Solarvest, commented: “The CGPP represents a major advancement towards a more transparent and competitive energy market in Malaysia, driven by supply and demand dynamics. We are privileged to have gained the trust of leading companies in the financial services and technology sectors as their decarbonization partner. With our proven expertise in utility-scale projects, we are confident in our ability to deliver sustainable energy solutions that support their environmental goals.”
The agreements, each spanning 21 years, will bolster Solarvest’s recurring revenue from electricity sales generated by the solar power plants. To date, Solarvest and its partners have been awarded a total export capacity of 90 MW under the CGPP by the Energy Commission of Malaysia.
Industry Reactions
Amarjit Sandhu, Corporate Vice President of Assembly & Test NAND Operations at Micron Technology, expressed: “As memory and storage continue to drive technological advancements, our involvement in the CGPP highlights our dedication to a sustainable future. Micron remains committed to the green energy and energy transition goals outlined in the National Energy Policy 2022 – 2040 and the National Energy Transition Roadmap.”
Hezri Adnan, Director of Group Sustainability at Bursa Malaysia, stated: “Sustainability is a core component of Bursa Malaysia’s agenda. We acknowledge our role in influencing capital market participants towards sustainable practices. We are committed to leading by example and will continue to mitigate our climate impact through various strategies.”
Future Plans
Beyond the CGPP, Solarvest is exploring a potential partnership with Micron to meet its zero-emission targets.
The company is also examining opportunities to reduce its carbon footprint through the newly introduced Corporate Renewable Energy Supply Scheme (CRESS).
This scheme allows Solarvest to supply electricity to corporate clients across Malaysia via the national grid network, leveraging the open grid access concept and third-party access (TPA).
Conclusion
Solarvest’s recent agreements highlight a significant step forward in Malaysia’s clean energy transition. With the support of major corporate entities and government initiatives, the company is set to play a pivotal role in advancing sustainable energy solutions in the region.