The Malaysian government has awarded a power purchase agreement (PPA) to German solar developer ib vogt to provide 30MW of electricity to Samsung SDI Energy Malaysia, a subsidiary of the South Korean tech giant that specializes in the production of batteries.
The government awarded the PPA under its Corporate Green Power Program (CGPP), which aims to link solar power developers in Malaysia with potential corporate offtake partners. Companies can bid for a maximum of 800 MW of solar power capacity, an increase from the initial offering of 600 MW, with fixed electricity prices for the duration of the agreement, as is commonly seen in corporate PPAs.
While Samsung SDI did not specify which of its business 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, indicating a high demand for power across the company’s Malaysian operations.
ib vogt APAC, the Asia-Pacific subsidiary of ib vogt, will deliver power from its forthcoming 40MWp solar project in Kuala Muda. The project is presently under construction, and ib vogt anticipates commencing commercial operation in mid-2024. It will employ bifacial solar modules to enhance electricity production.
ib vogt APAC managing director David Ludwig said, “Supply chain decarbonization is a key challenge in the energy transition, and it is great to see Malaysia and Samsung SDI taking the lead in Southeast Asia.”
“Supporting Samsung SDI in decarbonizing their industry leading production facilities is a great example of how ib vogt can support corporations to meet their renewable energy goals,” he added.
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 the country, and program such as the CGPP could help make new solar facilities more financially viable.