Hanwha Energy Wins Contract for 48 MW Solar Power Project in Malaysia
[December 7, 2017] Hanwha Energy won its bid for the 2nd round of the Large Scale Solar project for Malaysia's National Electricity Board, in early December.
Having won the bid, Hanwha Energy will begin construction on a 48 MW solar power generation plant in Perlis, a region in the northwestern part of Peninsular Malaysia bordering Thailand. Construction is set to begin in July of 2019 while commercial production is expected to begin in October 2020. The plant will generate enough electricity to sustain 15,000 households.
The project is under the auspices of Malaysia's state power company TNB (Tenaga Nasional Berhad) as a private sector-led BOO (Build-Own-Operate) power generation project in which the contractor constructs then operates the facility to recoup initial investment costs. Hanwha Energy plans to establish an SPC (Special Purpose Company) with a local Malaysian partner to enter into a power purchasing contract with TNB. Hanwha Energy will directly oversee investment, financing, procurement of primary equipment, plant operations and management. Strong ROI is expected, over the course of operating the facility for the contracted 21 years.
The project marks the first time a Korean company has won a contract for a Malaysian state-led solar power project.
"This opportunity will serve as a model for how we will win new project bids in Malaysia and across the Southeast Asian solar energy market," said Shin Jiho, Executive Director of Hanwha Energy Solar Business Division.
The entire 48 MW high-quality photovoltaic modules will be supplied by Hanwha Q CELLS, demonstrating the synergy between Hanwha Group's solar power-related subsidiaries.
Hanwha Group acquired Germany's Q CELLS Gmbh in 2012 along with its solar cell factory located in Cyberjaya near Kuala Lumpur. The factory has since been used by Hanwha Q CELLS as its production center.
At the time of the acquisition, the factory was limited to producing 800 MW of solar power cells. After Hanwha Q CELLS' acquisition, the factory underwent a series of upgrades and can now produce 1.8 GW (enough electricity for approximately 2.5 million households). Hanwha Energy's achievement gained recognition by the State of Selangor
(the Malaysian government) by being selected among its list of "The Highest Investment by Foreign Companies" in 2016.
Established in 2007, Hanwha Energy is an eco-friendly and comprehensive energy company. We operate cogeneration plants that provide a stable supply of high-quality electricity and ultra-high-pressure steam to companies in national industrial complexes in South Korea. By providing readily available power, our plants improve the competitive advantage of our off-takers. Our cutting-edge technology consistently complies with South Korean government requirements for energy efficiency and greenhouse gas emissions reduction.
For more information, please visit: hec.hanwha.co.kr/eng
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 61 domestic affiliates and 325 global networks in three major sectors: manufacturing and construction, finance, and services and leisure. With more than 65 years track record of industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from chemicals & materials, aerospace & mechatronics, total solar energy solutions, and global construction. The finance network, covering insurance, asset management and securities, is the second largest non-bank financial group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses.
For more information, visit: www.hanwha.com
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