Reservoir Link Energy Bhd, an energy-related service provider, announced on April 28 that its subsidiary Reservoir Link Renewable Sdn Bhd will collaborate with Sunseap Energy (Malaysia) Sdn Bhd to sign a term sheet for a joint venture with an initial payment registered capital of MYR 1 million ($228,000).
The joint venture will co-develop, build, own and operate rooftop and ground-mounted solar PV projects in Malaysia. The two parties will also do their best to supply around 20 MWp of solar PPAs to the joint venture by the end of 2023. Reservoir Link will hold a majority stake of 51% while Sunseap will hold the remaining 49%.
Reservoir Link’s Executive Director, Thien Chiet Chai, said, “We are very pleased with this collaboration which is strategically aligned with our goals of decarbonization and accelerating our cleaner energy generation plans. We are proud to have Sunseap on board as a strategic partner who is a leader in the renewable energy segment across Asia. This will allow us to complement each other in the field of solar renewable energy in Malaysia given their vast experience in the field of solar energy. Our renewable solar energy segment has enjoyed continued success since our first venture. We view this segment favorably and expect it to continue to thrive given the eventual start of construction of Utility-Scale Solar Project 4 and future utility-scale solar projects. This is also supported by the government with the launch of the Net Energy Metering Scheme. This will give us the opportunity to expand our pipelines and grow our portfolio of solar farms, further strengthening our presence as an energy company.
CEO and co-founder of Sunseap Business, Frank Phuan, said, “We are pleased to announce our partnership with Reservoir Link as we position ourselves to meet the demand for clean energy in Malaysia. We have noticed the huge potential of the Malaysian market following local government initiatives to encourage the adoption of solar energy through utility scale solar projects as well as the net energy metering system which has received a overwhelming response.
“This is in line with Malaysia’s target of 31% renewable energy capacity by 2025. We believe our market entry is timely with Reservoir Link’s expertise in the energy sector renewable solar. Our strategic alliance will forge a strong synergy to build and operate these rooftop and ground mounted solar PV projects.