Kuala Lumpur, 7 April 2022 — Solar Photovoltaic (PV) and Earthing and Lightning Protection (ELP) specialist Pekat Group Berhad (“Pekat” or the “Company”, Bursa: 0233, Bloomberg: PEKAT:MK)(“柏卡集团有限公司”) has secured a contract from Sun Estates Sdn Bhd (“Sun Estates”) to develop a large-scale solar (LSS) photovoltaic (PV) farm for a value of RM38.3 million.
The Company’s wholly-owned subsidiary Pekat Solar Sdn Bhd (“PSSB”) has accepted the letter of award from Sun Estates for its appointment as the turnkey engineering, procurement, construction and commissioning (EPCC) contractor for the project.
Sun Estates has also inked a two-year contract with PSSB for the maintenance of the solar PV farm, which is expected to be commissioned in December 2023.
Sun Estates’ principal activity is the operation of power generation facilities that produce electric energy. It is 51%-owned by PB Green Farm Sdn Bhd and 49%-owned by Mass Team Industries (M) Sendirian Berhad.
The 10 megawatt alternating current (MWac) solar PV farm, located in Batang Padang, Perak, is part of the LSS Bidding Cycle 4 ([email protected]) competitive bidding that was conducted by the Energy Commission in 2021.
Mr Wee Chek Aik (黄則億), Executive Director of Pekat, said the latest contract win provides a timely replenishment of the Company’s solar EPCC order book to RM209.0 million following the completion of its RM33.1 million EPCC contract for PROTON’s 12 MWp solar PV farm at its Tanjung Malim plant in Perak six months ahead of schedule.
“Pekat’s expertise is becoming increasingly relevant at a time when more and more organisations are becoming carbon-conscious and are seeking to adopt clean, renewable energy.
“Solar energy provides the much needed alternative for companies to manage their long-term energy costs especially in light of the current global energy crunch, which has been triggered by rising demand in clean energy, underinvestment and geopolitical tensions resulting in the surge in energy prices.
“With prices of coal to oil and gas having more than doubled in the last two years, the cost of generating electricity from such fuels have escalated and our domestic electricity tariff has been adversely impacted.
“However, notwithstanding the cost challenges arising from the global supply chain disruptions, we are optimistic of our growth prospects in the renewable energy space moving forward,” he further added.
The contract is expected to contribute positively to the net assets and earnings of Pekat Group upon completion of the project.