KUALA LUMPUR (Oct 30): Clean energy specialist Solarvest Holdings Bhd (KL:SLVEST) said its 70%-owned subsidiary Setia Kawan Energy Sdn Bhd (SKESB) has been approved by Tenaga Nasional Bhd (TNB) (KL:TENAGA) to operate as a merchant generator to sell energy to the single buyer for a capacity of 29.99 megawatt (MW) to be located in Manjung, Perak.

In a filing with Bursa Malaysia on Wednesday, Solarvest said SKESB has received the new enhanced dispatch agreement (Neda) connection agreement entered into with TNB on Oct 28. The remaining 30% of SKESB is held by TNB Renewables Sdn Bhd.

Under the Neda connection agreement, SKESB will operate and maintain a solar photovoltaic energy generating facility with its approved export capacity of 29.99MW, in which the renewable energy (RE) produced will be sold virtually via four separate corporate green power agreements (CGPAs) to Texas Instruments Malaysia Sdn Bhd, Micron Semiconductor Malaysia Sdn Bhd, Bursa Malaysia Bhd and NTT Global Data Centers CBJ1 Sdn Bhd.

TNB also agrees to give SKESB access to the national power utility’s bulk power network for the supply of the energy generated by the facility.

Throughout the term of the CGPAs, the corporate consumers will offtake the RE produced by the facility, along with bundled renewable energy certificates, for 21 years from the commercial operation date, with a contract for difference mechanisms at an agreed pricing.

"The signing of the Neda connection agreement is not expected to have any impact on the group's net assets and earnings for the financial year ending March 31, 2025. The group, however, expects positive future earnings contribution from the facility from the commercial operation date for the span of 21 years," said Solarvest.

At noon market break on Wednesday, Solarvest shares closed down one sen or 0.6% at RM1.59, giving it a market capitalisation of RM1.13 billion. The stock has risen 20.45% so far this year.