SHAH ALAM: Malaysian power company Malakoff Corporation Bhd is set to capture 25% of the total renewable energy (RE) market share in Malaysia by 2031, on the back of their aspiration to achieve 1,400MW of RE capacity by 2031, in line with the government’s total RE target of 4,000MW by 2030.
Malakoff managing director and CEO Anwar Syahrin Abdul Ajib (pix) said that their RE initiatives includes a variety of projects including solar and electric vehicles, financed through a combination of debt financing (80%) and internal funds (20%).
“We are confident (in achieving its target) as the company has the financial strength and capabilities to achieve it. We are competitive and very driven. When we announced this journey and rebranded our organisation, it marked a significant transition and transformation for Malakoff. So, by hook or by crook, we have to make it happen. This is a big commitment from the organisation,” he told reporters at the Solar Power Purchase Agreement (SPPA) document exchange event with the DRB-Hicom Group of Companies for solar projects today.
He stated that Malakoff is actively seeking opportunities to expand its RE portfolio, explore large scale solar projects, and consider mergers and acquisitions (M&A) to achieve this goal.
“If there are opportunities for M&As … we would like to see if there are any parties out there who want to cash out. We want to build market share because we have said that 1,400 megawatt target. So time is running out and it’s a market share game.
“But it’s also a way for us to neutralise the fact that we have a lot of thermal plants. And people criticise us for not doing enough. So this is just a commitment in terms of trying to reduce or offset against the GHGs that we generate from our power plants,” he added.
Within its solar space, Malakoff has the aspiration towards achieving a 500MW target of solar projects within the Albukhary Group of Companies, its parent company.
Malakoff has inked the 25 years SPPA through its subsidiary Malakoff Radiance Sdn Bhd with the DRB-Hicom Group of Companies namely Motosikal dan Enjin Nasional (Modenas) Sdn Bhd, PMB Properties Sdn Bhd, Isuzu Hicom Malaysia Sdn Bhd, Hicom Automotive Manufacturers (Malaysia) Sdn Bhd, CTRM Aero Composites Sdn Bhd, Hicom Teck See Manufacturing Malaysia Sdn Bhd, DRB-hicom Bhd, DRB-Hicom Defense Technologies Sdn Bhd, Defence Services Sdn Bhd and PHN Industry Sdn Bhd for the development, operation and maintenance of solar photovoltaic systems at 14 locations in Selangor, Perak, Kedah, Malacca and Pahang.
With a total capacity of 20.78 MWp and total electricity generation of 26,546.45 MWh per annum, the company said this project is expected to play a role in making a contribution to an annual reduction of 20,706 tCO2e equivalent to a carbon sequestration of 23,204.56 acres of forest, offsetting Co2 from the atmosphere.
“Currently, the project is worth roughly RM50-60 million. The total (project value) is dependent on when we get more from them (DRB Hicom). So for the time being we’re working on another about 10MW for expansion. They’re happy with what we’ve installed so far. So there are opportunities for us to expand beyond the existing SPPAs that we’ve signed with them. So then we’ll get more,” he said.
