Thursday July 14, 2011

BCorp plans RM800mil-RM1bil 100MW solar power plant


It has submitted proposal to build solar power plant in Selangor

KUALA LUMPUR: Berjaya Corp Bhd (BCorp) has submitted a proposal to the Government to build a 100MW solar power plant in Bukit Tagar, Selangor, said its chairman Tan Sri Vincent Tan.

If this proposal goes through, it will be BCorp's first venture into renewable energy sector.

Tan said the power plant would cost RM800mil to RM1bil. For the investment to be viable, it would depend on the feed-in tariff (FiT) set by the Government.

Tan (left) exchanging documents with Posco president and CEO Chung Dong-Hwa.

He added that BCorp's South Korean partner Posco Engineering & Construction Co Ltd would probably be involved in the project as it had the required expertise.

“Malaysia has plenty of sunlight. It would be wasted if we do not embark on solar projects. For the solar to work though, we need the FiT to make it viable,” said Tan after the signing of a memorandum of understanding (MoU) between BCorp and Posco yesterday.

In a nutshell, a feed-in tariff is an incentive structure to encourage the adoption of renewable energy (RE) through Government legislation. Tenaga Nasional Bhd will be obliged to buy renewable electricity at above-market rates set by the Government over a specific period of time from the day the system is connected to the grid.

Government officials have said that tentatively, the combined quota for RE for this year is 111MW for all RE technology. Of this, 16MW would be allocated for both small and large-scale solar photovoltaic producers. However, the allocation for solar could increase in years to come.

The MoU signed will see BCorp and Posco working closely and sharing their respective expertise and resources in property development and infrastructure construction, RE as well as petrochemical plants.

Posco will share its expertise in energy, chemical and water treatment plants while BCorp will assist in prospective property development businesses in Malaysia and other markets, especially Vietnam.

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