KUALA LUMPUR: JAG Bhd's newly established renewable energy arm, JAG Renewable Energy Sdn Bhd (JRESB) has entered into a commercial agreement with RH Silver Sdn Bhd to lease 112 acres of land in Lumut, Perak.
In a statement today, JAG said the intention to lease the land to give way for JRESB to participate in the bidding process for the LSS@MEnTARI programme (large scale solar) by the government for a capacity of up to 29 megawatt alternating current (MWac).
RH Silver Sdn Bhd is a Perak-based construction and property development firm.
JAG is upbeat with its move into this new sector, more so with the target set by the then Ministry of Energy, Science, Technology, Environment and Climate Change, now Ministry of Science, Technology and Innovation, to achieve 20 per cent electricity generation from renewable energy.
"We are confident that Malaysian renewable energy sector holds much potential for us. This agreement, which is a long-term concession from the commercial operation date, offers strong prospects for the overall growth of the group.
"This is part of our commitment to diversify our earnings stream, with a view to enhancing value in meaningful yet sustainable ways," said JAG chairperson and executive director Stacey Tan Siew Chin.
The power plants under the LSS@MEnTARI programme, aimed at accelerating the development of the nation's electricity supply industry especially for renewable energy, is expected to start operating by end 2023, with the development of each plant taking up to 18 months.
Tan said JAG is currently making significant progress in working towards the tender process, by developing and collating all necessary documents.
"We are positive we will be able to meet all the requirements and the submission deadline.
"Our core business will always remain as e-waste management. There are vast opportunities in the industry, as we expect this division to grow.
"However, this diversification is our way of expanding our income stream while mitigating our reliance on commodity prices and exchange rates, which fluctuates according to the market," she said.
ends