Pekat Group secures 15-year power purchase agreement

KUALA LUMPUR (Nov 15): Pekat Group Bhd has secured a power purchase agreement (PPA) to supply solar-generated electricity to Majlis Bandaraya Seberang Perai (MBSP) for a 15-year period.

In a statement on Monday (Nov 15), Pekat said the PPA was inked between its unit Pekat Solar Sdn Bhd with MBSP under the government’s Net Energy Metering (NEM) Scheme.

Under the agreement, Pekat Solar will instal, own and operate a rooftop solar photovoltaic (PV) system with generation capacity of 536 kilowatt-peak, which will be installed atop MBSP’s car park facility.

MBSP will in turn pay Pekat Solar for electricity procured from the solar PV system based on the fixed discounted electricity tariff as the mutually agreed value.

The agreement marks Pekat’s first PPA contract serving the public sector, and reflects rising market confidence in its capabilities in the solar PV industry.

Pekat executive director Wee Chek Aik said the project complements rising awareness of the environmental, social and governance (ESG) agenda by providing an avenue for MBSP to reduce carbon footprint in a sustainable manner through the adoption of clean energy, while helping achieve savings in its electricity bills in the long run.

“Together with the EV charging facility, Pekat’s offerings support MBSP’s move towards decarbonisation as a low-carbon city come 2022.

“Pekat is looking to work together with government agencies to reduce their carbon footprint and in all their ESG projects.

“We believe more City Council/Municipal Council/government agencies, after seeing MBSP’s decarbonisation project, will adopt the PPA model to take advantage of the NEM scheme to reduce their electricity bills,” he said.

He said with this installation, Pekat Solar had completed more than 12 megawatt-peak car park systems, mostly the integrated type where solar panels form part of the roof system.

Wee said the project is expected to contribute positively to Pekat’s earnings for the financial year ending Dec 31, 2022 and onwards.

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