Malakoff completes Zec Solar acquisition to boost RE capacity to 159MW

KUALA LUMPUR: Malakoff Corporation Bhd has completed its acquisition of Zec Solar Sdn Bhd and TJZ Suria Sdn Bhd.

Malakoff now holds a 51 per cent stake in Zec Solar representing 22.39 million shares while in TJZ Suria, it has 49 per cent or 49,000 shares.

The acquisition is expected to increase Malakoff's effective capacity to 159 megawatts (MW) in the renewable energy (RE) sector and optimise operational costs through resource synergies, resulting in economies of scale.

ZEC Solar is the owner and developer of the large scale solar (LSS) facility with a capacity of 29 MWac in Kota Tinggi, Johor.

This is under the LSS programme with a 21- year solar power purchase agreement (SPPA) effective until 2040.

Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib said the expansion will significantly enhance Malakoff's technical capabilities, bringing the total of Malakoff's installed RE capacity to 159MW.

It also provides a reference plant to meet the requirements of future LSS bidding exercises, both domestically and internationally.

"Adding to this, we have also ventured into hydropower project via RP Hydro (Kelantan) (RPHK) Sungai Galas project with a capacity of 84MW.

"Additionally, we secured SPPAs with major industry players such as DRB-HICOM Group of Companies, UMW Group of Companies, Railway Assets Corporation and Keretapi Tanah Melayu Bhd," he said in a statement.  

To date, through its newly-established business pillar – Malakoff Green Solutions – Malakoff's RE portfolio stands at 159 MW.

This ranges from the implementation of LSS and rooftop solar projects to small hydropower generation as well as the installation of carbon-free mobility infrastructure.