KAB partners with Philippines’ LCS to pioneer 20MWp solar farm project
KUALA LUMPUR: Sustainable energy specialist Kinergy Advancement Bhd (KAB), is expanding further into the Southeast Asian renewable energy (RE) landscape, venturing into the fourth market - the Philippines - via a major solar power project in collaboration with a reputed Philippine conglomerate.
The group’s wholly-owned subsidiary, KAB Energy Holdings Sdn Bhd (KABEH), has signed the Head of Agreement (HOA) with LCS Holdings Inc (LCS), which has extensive expertise in solar energy development.
Under the agreement, KABEH and LCS will jointly develop a 20 Megawatts-peak (MWp) Solar Farm Project located at Santa Ilocos Sur, Philippines, with the potential to expand the project up to 100 MWp. LCS, the project owner, has secured all necessary contracts and permits for this Solar Farm project.
Significantly, the signing ceremony was graced by the esteemed presence of Mr. Luis Crisologo “Chavit” Singson, Ex-governor of the province of Ilocos Sur and chairman of LCS Holdings, underscoring the project’s importance and the strong collaboration between the two entities
This landmark collaboration with LCS adds to KAB’s diverse and robust RE portfolio, which includes a variety of solar, hydro, and biogas assets. Spanning across Malaysia, Thailand, Indonesia, and now the Philippines.
The project will have a lifespan of 25 years, providing a stable and long-term recurring income for KAB. The energy produced from the project will be exported to Retail Electricity Supplier (RES) or the Wholesale Electricity Spot Market (WESM) in the Philippines.
KAB executive deputy chairman and group managing director Datuk Lai Keng Onn expressed enthusiasm about the collaboration, “The signing of this HOA with LCS is a cornerstone in our strategy to broaden our renewable energy initiatives and expand beyond Malaysia into the Southeast Asia market.
“This collaboration is not just a business venture; it’s a step towards a sustainable future. We are eager to combine our technical expertise in renewable energy with LCS’s local insights to make this project a benchmark in the industry.”
Luis Crisologo “Chavit” Singson, Ex-governor of the province of Ilocos Sur and chairman of LCS Holdings said, “The 100 MWp solar power plant is not just a numerical achievement; it signifies our dedication to harnessing the natural power of the sun to meet the energy needs of today without compromising the needs of future generations.
“This venture not only allows us to address the urgent global call to reduce worldwide carbon emissions, but it also fosters economic growth, creates job opportunities, and contributes to the well-being of the communities in which we operate.”
Lai added, “By combining LCS’s extensive expertise in solar energy and our prowess in engineering solutions, we aim to create a model of renewable energy efficiency and economic viability.
This project, with a 25-year lifespan, is not just a significant step towards a more sustainable future but also an avenue for sustained long-term earnings for our group.”
This project aligns with both companies’ commitment to reducing carbon footprint and promoting sustainable energy sources.
The HOA, which lays out the preliminary terms for a joint venture, is a testament to the shared vision and commitment of both KABEH and LCS towards sustainable and renewable energy solutions.
The agreement, which is subject to definitive documentation and due diligence, is expected to be formalised soon.
Both parties look forward to a fruitful and sustainable partnership that will pave the way for a greener future.