KUALA LUMPUR (April 3): KIP Real Estate Investment Trust (KIP REIT) is set to save about RM1.2 million a year on its electricity bill after successfully installing a 2.73 megawatt (MW) peak solar photovoltaic (PV) system at six of its assets in December last year.
The assets are KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Melaka, as well as KIP Mall in Bangi.
Chief executive officer (CEO) Chan Heng Wah said the green initiative, a 25-year agreement with Pekat Solar Sdn Bhd, was on an 80:20 basis at a total cost of about RM9.26 million, funded via bank borrowings.
“Over the 25 years, we expect to generate about 93.9 gigawatt hours of electricity from the systems, that will give an estimated minimum saving of RM26.4 million, which represents about 15% to 20% of the total electricity cost,” he told reporters after the handover ceremony of the solar PV systems here today.
Also present were Under Secretary of the Ministry of Energy, Science, Technology, Environment, and Climate Change, Wong Tin Song; Sustainable Energy Development Authority (Seda) CEO Dr V. Sanjayan; Pekat Solar managing director Wee Chek Aik; and KIP REIT chairman Datuk Syed Hussain Syed Husman.
Chan said KIP REIT would continue to support the government’s renewable energy (RE) initiative and expected to also expand the systems to its newly acquired Aeon Mall Kinta City in Ipoh, Perak soon.
He said the company was targeting to raise its assets under management to about RM1.5 billion by 2023, thus the RE initiative would also expand accordingly.
“We hope to get more approvals from the government to increase our capacity as this is in line with the Government’s target to achieve 20% RE (production) in the national power mix by 2025,” he said.
Meanwhile, to a question on whether the REIT would go for the independent power producer (IPP) licence in the near term, Syed Hussain said the company is still not looking at this area and for now the PV systems installed are meant to reduce the operational costs.
“For us to go and seek the IPP licence would depend on whether we have enough size. For now, we are not looking at it yet but in future, 10 to 15 years from now if we have the size, we might,” he added.