OCK Group Invests in 116-MW Malaysian Solar Project

• OCK Group Bhd invests MYR 350 million in a solar project, boosting its renewable energy presence in Malaysia and partnering with Spain's Zelestra for a greener future.

OCK Group Bhd, a Malaysian telecoms provider, has secured a conditional investment agreement valued at MYR 350 million (USD 78.9 million) in a 116-MW solar project in Kedah state. This deal is with Spanish renewables firm Zelestra and its subsidiary Solarpack Asia Sdn Bhd, which holds a 49% stake in the solar venture. OCK will purchase 1,000 redeemable preference shares in SPK Asia and settle a MYR 14.2 million loan transferred from Zelestra.

This strategic investment aligns with OCK’s goal to bolster its independent power producer (IPP) operations. The solar project, located in Sungai Petani, began generating electricity in March 2022, with its output sold to utility Tenaga Nasional Berhad under a long-term power purchase agreement. The project was a recipient of the third large-scale solar program in Malaysia in 2022, reinforcing OCK's presence in the solar market, where it manages 29 plants across the country.

How does OCK Group's investment impact Malaysia's solar energy landscape and its operations?

OCK Group's Investment and Its Impact on Malaysia's Solar Energy Landscape

• Expansion of Renewable Energy Capacity: OCK Group's investment in the 116-MW solar project significantly contributes to Malaysia's overall renewable energy capacity, helping the country progress toward its sustainable energy targets and reducing reliance on fossil fuels.
• Boosts Energy Security: By diversifying its energy portfolio through solar investments, OCK Group enhances energy security for Malaysia. This diversification mitigates risks associated with energy supply disruptions and fluctuating fossil fuel prices
• Long-term Power Purchase Agreement (PPA): The agreement with Tenaga Nasional Berhad ensures a steady revenue stream for OCK Group, providing financial stability and encouraging further investments in renewable energy projects.
• Support for Local Industry: This investment aims to stimulate Malaysia’s solar manufacturing and technology sectors, fostering local job creation and expertise in renewable energy, and contributing to the growth of a green economy.
• Affordable Electricity Options: With an increase in solar projects, OCK Group's efforts can help lower electricity costs for consumers over time, making energy more affordable as economies of scale in solar technology improve.
• Alignment with National Policies: OCK Group’s strategic focus on solar energy aligns with the Malaysian government’s goals, such as the Renewable Energy Act aimed at achieving 20% renewable energy in the national mix by 2025.
• Reduction of Carbon Footprint: By investing in solar energy, OCK Group plays a vital role in reducing greenhouse gas emissions in Malaysia, helping the country meet its international climate commitments.
• Increased Competitive Advantage: With 29 operational solar plants in the country, OCK Group is strengthening its position as a significant player in the Malaysian energy market, potentially attracting more partnerships and investment opportunities.
• Technological Innovation: Collaborating with firms like Zelestra and Solarpack Asia Sdn Bhd may bring advanced technologies and innovative practices to the Malaysian solar sector, fostering greater efficiency and effectiveness in solar energy generation.
• Community Engagement and Benefits: The solar project could provide socio-economic benefits to local communities in Kedah by creating jobs, improving infrastructure, and potentially enhancing local services through the economic activity generated.
• Encouragement of Private Sector Participation: OCK Group’s investment sets a precedent for other companies, showcasing the viability and profitability of entering the renewable energy space, thereby stimulating further investment and participation from the private sector.
• Enhancement of Grid Stability: The addition of a significant solar power source contributes to a more balanced energy grid, aiding in the management of peak demand and reducing the overall strain on existing infrastructure.

By undertaking such a substantial investment in solar energy, OCK Group is not only solidifying its role in Malaysia's energy landscape but also contributing to a more sustainable, renewable future for the country.