SHAH ALAM: JAG Bhd, one of Malaysia’s leading total waste management companies, has established a new subsidiary, JAG Renewable Energy Sdn Bhd (JRESB), in July.
JRESB has entered into a commercial agreement with RH Silver Sdn Bhd, a Perak-based construction and property development firm, to lease 112 acres of land in Mukim Lumut, Manjung to participate in the bidding process for the LSS@MEnTARI programme (Large Scale Solar) by the Malaysian government, for a proposed capacity of up to 29MWac.
JAG is upbeat with its move into this new sector, more so with the target set by the then Ministry of Energy, Science, Technology, Environment & Climate Change (now Ministry of Science, Technology and Innovation) to achieve 20% electricity generation from renewable energy.
“We are confident that that Malaysian renewable energy sector holds much potential for us,” JAG Chairperson and Executive Director Datin Stacey Tan Siew Ching said today.
“This agreement, which is a long-term concession from the commercial operation date, offers strong prospects for the overall growth of the Group. This is part of our commitment to diversify our earnings stream, with a view to enhance value in meaningful yet sustainable ways.”
The power plants under the LSS@MEnTARI programme, aimed at accelerating the development of the nation’s electricity supply industry especially for renewable energy, is expected to start operating by end 2023, with the development of each plant taking up to 18 months.
“We are currently making significant progress in working towards the tender process, by developing and collating all necessary documents. We are positive we will be able to meet all the requirements and the submission deadline.”
“Our core business will always remain as e-waste management. There are vast opportunities in the industry, as we expect this division to grow. However, this diversification is our way of expanding our income stream while mitigating our reliance on commodity prices and exchange rates, which fluctuates according to the market,” Tan added.