The Malaysian government has awarded a power purchase agreement (PPA) to German solar developer ib vogt to provide 30MW of power to Samsung SDI Energy Malaysia, a local subsidiary of the South Korean technology giant that specialises in the production of batteries.
The government awarded the PPA as part of its Corporate Green Power Programme (CGPP), a project launched earlier this year to connect solar power developers in Malaysia with potential corporate offtake partners. Companies can bid for up to 800MW of solar power capacity, up from an initial offering of 600MW, with electricity prices fixed for the duration of the deal, as is often the case with corporate PPAs.
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While Samsung SDI did not specify which of its facilities would benefit from the power, the company did note that both its automotive and battery storage businesses reported improvements in year-on-year and quarter-on-quarter profits and revenue, suggesting a high demand for power across the company’s Malaysian operations.
The Asia-Pacific region subsidiary of ib vogt, ib vogt APAC, will deliver power from its upcoming 40MWp solar project in the Kuala Muda district of the state of Kedah. The project is currently under construction, with ib vogt expecting to begin commercial operation in mid-2024, and will use bifacial solar modules to optimise electricity production at the facility. The group has also signed an agreement for a separate company to provide engineering, procurement and construction services, but did not name this group.
“Supply chain decarbonisation is a key challenge in the energy transition, and it is great to see Malaysia and Samsung SDI taking the lead in Southeast Asia,” said David Ludwig, managing director of ib vogt APAC. “Supporting Samsung SDI in decarbonising their industry leading production facilities is a great example of how ib vogt can support corporations to meet their renewable energy goals.”
The CGPP is just one aspect of the Malaysian government’s plan to dramatically expand its renewable power sector, as it aims to meet 70% of its energy demand with renewables by 2050. Clean power developer Hexa Renewables has already announced plans to develop 1GW of hybrid solar PV projects in Malaysia, and projects such as the CGPP could help make new solar facilities more financially viable for developers.
The announcement of the award is also good news for the Malaysian solar sector, following First Solar’s admittance of unethical labour practices at one of its factories in the country.
