Plus Xnergy Holding Sdn Bhd through subsidiary, Plus Xnergy Services Sdn Bhd (PXS), has formed a joint venture with Yinson Holdings Bhd to develop and implement commercial and industrial rooftop solar photovoltaic projects in Malaysia. The joint venture will enable Plus Xnergy Asset (PXA), a subsidiary of PXS, to invest and develop power purchase agreement (PPA) projects.
The JV combines Yinson’s experience as an energy infrastructure and technology firm with a worldwide presence, and Plus Xnergy’s strength as one of the leading solar PV system and Engineering, Procurement, Construction, and Commissioning (EPCC) providers in Malaysia.
The partners said in a statement that the agreement is a step forward in bolstering their joint commitment since an initial collaboration agreement in August 2021. Having successfully secured PPA projects worth RM43 million in the last eight months, the firms are keen to jointly invest and develop solar PV projects via PPAs.
A PPA is a solar financing solution where a business entity does not incur any capital expenditure when adopting a solar solution. Aimed at optimising cash flow, businesses gain reduced electricity tariffs over a 15-20-year tenure. Once mature, business owners take full ownership of the solar setup and its savings benefits.
PXA will finance, install, operate, and maintain solar PV systems installed at the respective businesses with the PPA solution. This is ideal for businesses who are keen to preserve cash flow whilst reaping the benefits of solar, both environmentally and financially.
Thang Chee Keong, CEO of Plus Xnergy Services, said, “We are honoured to be furthering our alliance with Yinson through this shareholder agreement. With this in place, we deepen our partnership and joint endeavour towards making both clean and lower costing energy a possibility for businesses in Malaysia and beyond.
“Despite the pandemic and fluctuating demand, we remain confident that in meeting the 250MW goal of total installed capacity within five years. We will also work towards securing projects with multi-national companies based in Malaysia, as many have already begun their ESG journeys.”
Yinson Renewables CEO David Brunt said: “This agreement will allow us to further implement sustainable energy solutions for prominent energy consumers, whilst the secured projects are clear evidence of confidence in cleaner alternatives in energy. In addition, this contributes positively to Malaysia’s energy transition.
“PXA will continue to invest in PPA solutions to empower businesses in their journey towards reducing their OPEX whilst switching to cleaner energy. The zero-capital expenditure required on the part of businesses has helped our customers make the transition. Undoubtedly the rise in energy cost has made this a clearer option. Continued adoption of PPAs will also support national agendas and reforms such as the carbon neutrality goal by 2050,” said Thang.
