Nestcon Bhd has secured two large-scale solar plant projects in Sabah, with a 14.99 MWac plant in Bongawan and a 4.00 MWac plant in Sri Tanjong. Both projects will operate under a 25-year power purchase agreement and must begin commercial operations. Nestcon will finance the projects through internal funds and bank borrowings, expecting positive impacts on net assets, earnings per share and gearing.
Solar Plant Expansion in Sabah
The solar plant projects are part of Sabah's renewable energy expansion. Nestcon Infra Sdn Bhd, a subsidiary of Nestcon Bhd, secured the contracts through a competitive bidding process. The Bongawan solar plant is in Kimanis, located on Sabah’s west coast. The Sri Tanjong solar plant is in Tawau, on the southeast coast. The projects align with Malaysia’s push for sustainable energy solutions.
The power purchase agreement includes strict deadlines. Financial closure must be completed within the required timeline. Nestcon must also submit a commitment bond to the Energy Commission of Sabah. Failure to meet these requirements could impact project implementation.
Nestcon Bhd expects long-term financial benefits from the solar plant projects. The company anticipates steady revenue generation through the 25-year PPA. Positive financial indicators include increased net assets per share and stronger earnings per share.
Sabah's Renewable Energy Strategy
The Sabah Energy Council recently approved large-scale solar (LSS) projects totalling 199MW. The LSS Sabah 2024 bidding process attracted 15 successful bidders. However, the council did not disclose details of the winning bids.
Aside from Nestcon, Coastal Contracts Bhd is the only other company to confirm its bid success. Coastal Contracts, through its subsidiary Coastal Power Holdings Sdn Bhd, won a contract to develop a 15MWac solar plant on Sabah’s east coast.
The Sabah government aims to increase solar energy capacity. The push for renewable energy aligns with Malaysia’s national agenda for reducing carbon emissions. Large-scale solar plant projects will enhance the state’s energy security and sustainability.
Future Outlook
Nestcon’s latest achievement strengthens its position in Malaysia’s renewable energy sector. The company has demonstrated capability in large-scale solar plant development. The successful execution of these projects will enhance its reputation as a key player in sustainable energy.
The solar plant projects will contribute to Sabah’s clean energy goals. With a combined capacity of 18.99MWac, the facilities will provide renewable energy for the region. This expansion supports Malaysia’s commitment to achieving its carbon neutrality targets.
Nestcon remains focused on meeting project deadlines. The company is working closely with stakeholders to ensure timely financial closure and regulatory compliance. As the projects move forward, Nestcon will continue to explore new opportunities in the solar energy market.
The development of these solar plants marks a significant step for Sabah’s renewable energy landscape. With growing investments in clean energy, Malaysia is set to become a regional leader in sustainable power generation.
