Meta Bright bags 21 year renewable energy supply contract

Meta Bright Group Bhd’s subsidiary, FBO Land (Setapak) Sdn Bhd, has entered an agreement to participate in the Solar PV Zero Capex Program with Sinergi Perdana Sdn Bhd (SPSB).

The program entails a renewable energy supply agreement for a period of 21 years which offers SPSB a 20% discount to the prevailing rate comprising base TNB tariff rate and imbalance cost pass-through (ICPT).

FBO also will be the sole developer to develop, design, finance, install, construct, commission, operate and maintain the solar photovoltaic generating plants at SPSB’s site at FBO’s own cost.

This will include FBO to undertake 300kWp potential renewable energy initiatives partaken by SPSB, with final capacity subject to technical studies.

While this supply agreement is under net electric metering (NEM) NOVA, which means that the solar PV system’s generation will be charged to SPSB, generating recurring revenue for FBO, energy generated but not consumed by SPSB can be exported to the TNB grid in exchange for credits based on SMP rates.

"This supply agreement illustrates a resounding success following our recent diversification into the energy sector," Meta Bright ED Derek Phang said in a statement today.

Currently, Meta Bright’s total combined contract value of the solar projects including the new program stands at RM13.5 million.

The PV Zero Capex Program is expected to contribute positively to both company’s earnings throughout the duration.

Meta Bright shares were unchanged 16.5 sen, valuing the company at RM386 million.