CTRM uses solar power to stay cost-competitive
KUALA LUMPUR: In a move to stay cost-competitive, Composites Technology Research Malaysia Sdn Bhd (CTRM), that has taken the lead to install an eight-mwp (megawatt peak) roof-top solar power system worth Rm17mil for its six buildings, expects to reduce electricity cost by 20% per year.
CTRM is a subsidiary of Drb-hicom Bhd. The solar power system will be implemented in two phases, covering six buildings in Melaka.
Phase one, which covers around 2MWP solar panel coverage for one building, was completed in January this year.
CTRM chief executive officer Shamsuddin Mohamed Yusof told Starbiz that the manufacturing and engineering group has reduced electricity cost for the phase one building by up to 6% in the last five months.
“It is important to embark on this sustainability plan which will help the company remain competitive by reducing the manufacturing cost and opting for a cost-reducing strategy,” he said.
Phase two, which covers five buildings of CTRM with a total roof top size of 659,847 sq ft, will install a 6MWP roof-top solar power system by the third quarter of this year.
The installation of the solar power system for phase two is expected to be completed by mid-2022.
On the investment front, Shamsuddin said around Rm4mil had been invested for the phase one project, while phase two would cost the company around Rm13mil.
“Both phases are funded internally through the self-investment model.
“So, we are able to reduce the time period for the return of investments for phase one, which is likely to be in four years’ time.
“The installation of solar panels was also done by our team partly together with the contractors to optimise cost-efficiency,” he said.
Moving forward, Shamsuddin disclosed that CTRM had plans to install another 8-MWP solar power system for three of its subsidiaries.
“Since CTRM has taken the lead on behalf of the group to install the solar power system, it is still at the planning stage to install for its subsidiaries.
“The group is still compiling information within its subsidiaries before it embarks on this journey.
“It has not been finalised yet,” he said.
CTRM has worked with one of the top global solar panel manufacturers to install this solar power system.
Besides that, Shamsuddin acknowledged that the government had been supportive in providing green technology financial scheme grants to encourage more local companies to use solar power systems.
Although the government is supporting companies to install solar power systems, he said the country is unable to be at the forefront of manufacturing solar power systems as companies face a challenge in providing competitive pricing for the products.
Currently, China is the world’s largest manufacturer of solar panel technology.