PETALING JAYA: Engineering and project management consultant HSS Engineers Bhd (HEB) is set to expand its recurring income stream with its second venture in the renewable energy sector by developing a 95MW alternating current large-scale solar photovoltaic plant (LSS plant) in Teluk Intan, Perak.
HEB’s wholly owned subsidiary, HEB Energy Sdn Bhd, and its consortium partner Unique Fire Holdings Bhd have accepted a letter of notification from the Energy Commission to undertake the development of the plant.
HEB Energy and Unique Fire will set up a special purpose vehicle to undertake the project, which encompasses financing, design, construction, installation, testing, commissioning, completion, operation, and maintenance of the LSS plant. HEB Energy will own a 40% equity stake in a special purpose vehicle and Unique Fire the majority 60%. The estimated commercial operation date of the plant is Oct 11, 2027.
The LSS plant is part of the government’s fifth LSS bidding exercise, known as LSS-Peralihan Tenaga SuRia. The initiative is aimed at supporting Malaysia’s goal of achieving 70% renewable energy capacity by 2050, as outlined in the National Energy Transition Roadmap.
HEB executive vice-chairman Tan Sri Kuna Sittampalam said: “With this second and larger solar power project, we are in a pivotal position to advance as a key player in Malaysia’s ambitious renewable energy goals under NETR, building on our expertise in project management and engineering design. This initiative aligns with the government’s commitment to global climate action under the Paris Agreement.”
He added that they are on the cusp of profound growth in their participation in the renewable energy sector, fuelled by progressive government initiatives, including a RM1 billion allocation for the Green Technology Financing Scheme and RM300 million for the National Energy Transition Fund under Budget 2025.
“Expanding our vertical of recurring and long-term income-based contracts also underscores our commitment to diversifying sector coverage and revenue streams, catapulting us to substantial growth in the years to come,” Kuna said.
The development of the LSS plant, is contingent upon the consortium executing a solar power purchase agreement with a corporate consumer to commit to purchasing solar energy generated by the plant for 21 years.
The project, to be funded via internally generated funds and/or external borrowings, will contribute positively to HEB Group’s financial performance from 2027 onwards. It is the second project under HEB Group’s recurring and long-term income-based contracts vertical, after the 29.99MW solar photovoltaic plant project in Kuala Muda, Kedah. The vertical provides HEB Group with long-term income and complements its core expertise in engineering and project management consulting.
