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

Pekat, which is a solar photovoltaic (PV) and earthing and lightning protection (ELP) specialist, said on Monday the PPA was inked between its unit Pekat Solar Sdn Bhd with MBSP, under the government’s net energy metering (NEM) scheme.

Pekat Solar will install, own, and operate a rooftop solar PV system with generation capacity of 536 kilowatt-peak, which will be installed on MBSP’s car park building.

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

This is Pekat’s first project serving the public sector and the company said this reflects the rising market confidence in its capabilities in the solar PV industry.

MBSP will benefit from savings in its annual electricity bill, while reducing its carbon footprint in line with its commitment to transform Seberang Perai into a low-carbon city by 2022.

Installation of the rooftop solar PV system is expected to start this month and completed by February 2022. Pekat Solar will also install an electric vehicle (EV) charging station on-site.

Pekat executive director Wee Chek Aik said the contract reflects its capability both as an engineering, procurement, construction and commissioning (EPCC) contractor as well as a registered photovoltaic investor (RPVI).

“The project complements the rising awareness in 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 bill for the long run,” he said.

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

“We believe more city councils/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.

With this installation, Pekat Solar had completed more than 12 megawatt-peak car park systems, mostly integrated type where solar panels formed part of the roof.