Solar
Power
As part of MFCB Group’s expansion plans and strategy to begin and grow the renewable energy business, MFP Solar Sdn Bhd (“MFP Solar”) was incorporated on 29 August 2019 where the Group owns 55% equity shares while the remaining 45% is held by its strategic partner of which the ultimate beneficial owner is Pekat Group Berhad.
MFP Solar is principally engaged to undertake solar photovoltaic (“PV”) investment in Commercial and Industrial (“C&I”) rooftop solar projects in Malaysia. Being a solar investment company, MFP Solar engages directly in C&I solar projects to provide a capex-free solution for its target customers to save on their utility payments and enhance green corporate image. MFP Solar has been recognised as a Registered Solar PV Investor (“RSPVI”) by the Sustainable Energy Development Authority (“SEDA”) since January 2020, MFP Solar continues to expand its portfolio.
It is of note that the financing of C&I solar projects is particularly unique as it is under a Multi-tranche Green RM100 million Term Loan Facility that has been assigned a “Gold” assessment by the Malaysian Ratings Corporation Berhad (“MARC”), the highest assessment on MARC’s scale for green financing instruments. This is the first “Gold” green loan assessed by MARC in Malaysia and demonstrates our commitment to Sustainable Development Goals (“SDG”) 7, which is also in line with the Loan Market Association’s Green Loan Principles (GLP) 2020.
The Group expects to continue selectively adding new projects to the pipeline to expand its C&I solar PV investment portfolio, which forms part and parcel of the Group’s Renewable Energy (“RE”) strategy.
In August 2023, the Group secured a 46.5MW project quota under the Corporate Green Power Programme (“CGPP”) from the Energy Commission of Malaysia. This project is expected to contribute to the Division’s overall solar portfolio in 2025, marking the Group’s first large-scale solar development to implement the New Enhanced Dispatch Arrangement (“NEDA”) framework.
At present, our solar project portfolio extends beyond Malaysia, marking a significant step in our commitment to RE expansion. In addition to our presence in Malaysia, we have successfully expanded into Cambodia and the Maldives. The details of our overseas projects are as follows:
Maldives
Cluster project:
- Addu City
- Eydhafushi
- Fuvahmulah City
- Hinnavaru
- Thinadhoo City
- Kulhudhuffushi City
Cambodia
- Phnom Penh