Tenaga Nasional Bhd has been leading the energy transition in the public and commercial spheres. This includes working with international companies as they switch to renewable energy (RE), namely solar power.

TNB’s ongoing efforts have been getting more support from business leaders such as Asia’s largest retailer, Japan-based AEON, which manages and operates a retail chain of department stores, supermarkets and pharmacies in Malaysia through AEON Co (M) Bhd.

The partnership between AEON and GSPARX Sdn Bhd to install solar panels is driven by a shared commitment to sustainability and reducing environmental impact. Dr Kasuma Satria Mat Jadi, chief human resources officer at AEON Co (M) Bhd, says the company aims to minimise its carbon footprint while meeting the growing expectations of environmentally conscious customers and tenants.

“Additionally, the use of solar energy offers long-term cost savings on electricity and boosts AEON’s reputation as an environmentally responsible company. This collaboration aligns with both companies’ strategic vision of promoting a greener future,” he says.

Through the Supply Agreement with Renewable Energy (SARE) signed on April 12 last year, GSPARX is collaborating with AEON for the installation of rooftop solar photovoltaic (PV) systems at up to 41 AEON and AEON BiG shopping malls nationwide. The installation agreement is the largest to date for GSPARX, with a total capacity of 78MWp, which contributes to TNB’s RE capacity, bringing the total to 3,907MW, almost 50% of the 8,300MW target in the utility company’s journey to net zero carbon emissions, in line with the country’s energy transition commitment.

Kasuma says 17 installations have already been completed. The main challenge for the completed sites is to get them energised as this requires navigating the authorities’ requirements.

“For the remaining malls, some of the challenges from the mall side include minimising disruptions to daily operations and managing effective communication, as some of our parking lots are on rooftops and this will require closure of the section,” he explains.

The company is also committed to pursuing its green agenda by subscribing to the Green Electricity Tariff (GET) at 7,298MWh per month in total for selected locations. The GET programme provides the assurance to green-minded corporations and individuals that the electricity they receive are sourced from RE such as hydroelectric dams and Large-Scale Solar parks in Malaysia.

Kasuma says the collaboration with GSPARX is a zero-capex project, where the latter came in as a Registered Solar PV Investor (RPVI). However, the solar PV installation is expected to yield long-term returns through reduced electricity cost.

Non-financially, the project aligns with AEON’s commitment to sustainability, enhancing its profile as an environmentally conscious company. This aligns well with evolving consumer preferences, attracting environmentally conscious customers and tenants while contributing towards Malaysia’s National Energy Transition Roadmap (NETR) and the nation’s net zero aspirations by 2050. Additionally, the installation of solar panels demonstrates AEON’s leadership in sustainability within the retail industry, setting a positive example for other businesses and potentially leading to partnerships and collaborations with like-minded organisations.

“The installation of solar panels at AEON malls will likely have several trickle-down effects on its customers. The visible adoption of solar energy by AEON may enhance brand perception and loyalty among environmentally conscious consumers, who appreciate supporting businesses that prioritise sustainable practices,” he says.

There is a growing trend of having solar panels at malls in Malaysia. Elmie Fairul Mashuri, managing director of GSPARX, says several factors are contributing to this trend, the first being that solar energy offers long-term cost savings for businesses by reducing electricity bills and providing a hedge against rising energy costs.

Solar installations can also serve as a visible symbol of a mall’s commitment to sustainability, attracting environmentally conscious consumers and enhancing brand reputation. Marketing initiatives highlighting solar initiatives can differentiate malls from their competitors and attract a broader customer base.

“Malls, with their large roof areas, can benefit from installing solar panels to offset their energy consumption and lower operational expenses,” he says.

However, there are challenges in implementing solar installations at malls. When the rooftop space is also the designated car park area for mall visitors and tenants, the installation activities may disrupt parking operations. “Closing off a portion of the car park may inconvenience mall visitors, affect foot traffic and, potentially, impact business operations for tenants while ensuring a high level of safety measures is implemented to safeguard everyone,” says Elmie.

GSPARX’s work doesn’t just stop at AEON. It has installed solar PV systems in other malls such as Setia City Mall in Selangor, D’Piazza Mall on Penang Island, and Elmina Lakeside Mall and Bangsar Shopping Centre in the Klang Valley. The company intends to continue rolling out solar infrastructure to other malls as part of its efforts to promote RE adoption and sustainability initiatives.

On top of working with TNB to install solar PVs, AEON has worked with TNB Electron to install 20 electric vehicle (EV) charging points. The agreement has a delivery promise to complete EV charging point installations at AEON and AEON BiG malls in 2024.

The AEON locations are in Kuala Lumpur, Selangor, Penang, Perak, Kelantan and Johor, where each location will have two direct current (DC) charging bays with a 47kW DC charger. With a DC charger, a full charge takes one to 2½ hours, which suits customers’ spending time at the shopping mall.

AEON was prompted to set up these stations as there is a growing demand for convenient charging facilities amid the rise of EV adoption, while encouraging the use of EVs. “For AEON, integrating EV charging aligns with our commitment to sustainability while demonstrating our readiness to meet the growing demands of EV users and ensuring that AEON remains the preferred destination for eco-conscious shoppers,” says Kasuma.

In addition to working with AEON, there are ongoing efforts to collaborate with other shopping malls and make TNB Electron chargers more accessible in urban spaces to support the growing EV market.

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