Solarvest JV secures 25-year solar plant deal in Brunei
Solarvest Holdings Bhd has, via a joint venture (JV) company, secured a 25-year power purchase agreement (PPA) with the government of Brunei to invest in, build, and operate a 30MWac solar photovoltaic power plant, which will be the largest such plant in Brunei upon its completion by end 2026.
The project, which originated from a request for proposal (RFP) process launched in 2021, will be developed on a remediated landfill in Brunei. It is expected to generate an annual output of 64.47 million kWh of renewable energy, said Solarvest in a statement. Brunei aspires to achieve a 30% renewable energy mix and to reduce its greenhouse gas emissions by 20% from business as usual levels by 2030.
As part of the RFP requirements, participating developers were mandated to form JVs with government-linked companies to ensure national participation and capacity building, Solarvest said.
Hence, on June 14 when it inked the PPA, Solarvest also inked an agreement for the JV (under Seri Suria Power (B) Sdn Bhd (SSPSB)) with Khazanah Satu Sdn Bhd and Serikandi Oilfield Services Sdn Bhd. Solarvest's wholly owned Atlantic Blue Sdn Bhd holds a 34% stake in SSPSB, while Khazanah Satu owns a 30%, and Serikandi holds a 36% stake.
Khazanah Satu is a subsidiary of Brunei's Ministry of Finance, while Serikandi belongs to the Serikandi group of companies, a Bruneian-owned business group.
Also inked between SSPSB and the Brunei government was an agreement to lease the 33.29ha remediated landfill for the project.
"In 2024, Brunei's electricity consumption totalled 3,242GWh, with 95% generated from fossil fuels — highlighting an urgent need for a clean energy transition. The Brunei government's commitment to renewable energy is truly commendable, given the nation's abundance of fossil fuels.
"This milestone marks a proud moment for both Solarvest and Serikandi as we support Brunei's journey towards a more sustainable energy future. Leveraging our technical expertise and regional experience, we are honoured to play a part in delivering the nation's largest solar initiative," said Solarvest chief strategy officer Leon Liew Chee.
At the noon break on Monday, Solarvest's share price was down one sen, or 0.57%, at RM1.75, resulting in a market capitalisation of RM1.32 billion for the group.
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