In the middle of 2014, the company initiated the planning for venturing into renewable energy business. The first renewable energy business plan is to develop and operate a one (1) Megawatt Peak (“MWp”) capacity solar photovoltaic (“PV”) power plant located in Sungai Petani, Kedah, Malaysia. The company’s wholly owned subsidiary, MaxGreen Energy SdnBhd (“MESB”) was awarded as Feed-in Tariff (“FiT”) Approval Holder (“FiAH”) on 12 March 2015 by Sustainable Energy Development Authority (“SEDA”).
Malaysia’s FiT system obliges Distribution Licensees, which includes Tenaga National Berhad (“TNB”), to buy from FiAH the electricity produced from renewable energy and sets the FiT rate. The one (1) MW power solar PV power plant will be supplying the generated electricity to TNB and generating steady stream of revenue to the Group over the twenty-one (21) years period. The FiT mechanism would ensure that renewable energy becomes a viable and sound long-term investment for our Group.
Looking at the vast market having growth potential and recurring capability, we intend to expand our solar PV plants capacity up to fifty (50) MWp in the near future. Apart from expanding solar power energy business, the company has also signed an MoU with PWF Consolidated Berhad to explore the possibility of biogas energy production. The company has also formed a joint-venture with Malaysian Green Technology Corporation in respect to joint bid for renewable energy project in government or government linked corporations.We capitalize on the opportunity to venture into solar PV project, which is in line with our beliefs and at the same time bringing in steady stream of revenue to our Group.