​Nestcon Bhd has secured two large-scale solar plant projects in Sabah: a 14.99 MWac plant in Bongawan and another 4.00 MWac plant in Sri Tanjong. Both will operate under a 25-year power purchase agreement requiring them to achieve commercial operation. Financed through internal funds and bank borrowings, the projects are expected to benefit Nestcon’s net assets, earnings per share, and gearing.
Solar Plant Expansion in Sabah
Nestcon Infra Sdn Bhd, a subsidiary of Nestcon Bhd, secured these solar plant projects through a competitive bidding process as part of Sabah’s renewable energy expansion. The Bongawan plant will be located in Kimanis on Sabah’s west coast, and the Sri Tanjong plant will be in Tawau on the southeast coast. These projects align with Malaysia’s broader push for sustainable energy solutions.
The power purchase agreement stipulates strict deadlines, including the completion of financial closure within a specific timeline. Nestcon must also submit a commitment bond to the Energy Commission of Sabah. Fulfilling these requirements is critical to avoid potential delays in project implementation.
Nestcon Bhd anticipates long-term financial benefits from these projects, with the 25-year PPA expected to generate steady revenue. The company projects this will lead to an increase in its net assets and stronger earnings per share.
Sabah’s Renewable Energy Strategy
The Sabah Energy Council recently approved large-scale solar (LSS) projects totalling 199MW. While the LSS Sabah 2024 bidding process resulted in 15 successful bidders, the council has not disclosed the full 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’s goal of increasing its solar energy capacity aligns with Malaysia’s national agenda to reduce carbon emissions. Such large-scale solar projects are key to enhancing the state’s energy security and sustainability.
Future Outlook
This latest achievement strengthens Nestcon’s position in Malaysia’s renewable energy sector and showcases its capability in large-scale solar plant development. The successful execution of these projects will further enhance its reputation as a key player in sustainable energy.
With a combined capacity of 18.99MWac, these solar projects will significantly advance Sabah’s clean energy goals and provide renewable power to the region. This expansion also supports Malaysia’s broader commitment to achieving its carbon neutrality targets.
Nestcon remains focused on meeting project deadlines, working closely with stakeholders to ensure timely financial closure and regulatory compliance. As these projects move forward, the company 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.
