Vsolar on global RE fund’s radar?

KUALA LUMPUR: A global renewable energy (RE) fund is said to be eyeing investments in local solar firms and may target Vsolar Group Bhd.

Vsolar is bidding for RE projects under the large-scale solar (LSS) scheme.

People with knowledge on the matter said the fund was looking at Malaysia as the RE penetration was still low.

The world’s top RE funds include BlackRock, RobecoSAM and Vontobel.

It is unclear which of the funds is looking to invest in Malaysia.

“There is potential for huge growth in Malaysia. The global fund wants a share in local energy projects.

“It arranges funding packages by taking stakes in companies around the world which have RE projects in hand or are bidding for contracts.

“The fund manager may target Vsolar as the stock is undervalued and has the potential for growth, having recently established a partnership with Mattan Engineering Sdn Bhd to bid for an LSS project of 50 megawatts (MW) from the government,” said a source.

Malaysia recently opened competitive bidding for one gigawatt of solar plants worth about RM4 billion, the largest capacity offered under the LSS scheme.

The Energy and Natural Resources Ministry, via the Energy Commission, is requesting proposals for the development of the fourth cycle of LSS projects (LSS4).

Bidding will close on Sept 2 to ensure that the solar projects can be launched by the first quarter of next year.

The solar plants under LSS4 are expected to start operating by Dec 31, 2023.

It is understood that Vsolar is eyeing more than one LSS project of 50MW.

The stock closed 1.5 sen higher at seven sen on Bursa Malaysia yesterday.

In a filing with Bursa Malaysia on June 16, Vsolar said its wholly-owned Cubetech Asia Sdn Bhd intended to bid and secure a quota under the LSS scheme, with the support of Mattan as the engineering, procurement, construction and commissioning partner to develop the project.