FIHB partners Sunview to accelerate push into renewable energy
KUCHING: Bursa Malaysia Main Market-listed Federal International Holdings Bhd (FIHB) has recently via its jointcontrolled entity, Warrants RE Assets Sdn Bhd (WREA), signed a Memorandum of Understanding (MOU) with Fabulous Sunview Sdn Bhd (Sunview) for business collaboration for renewable energy (RE) projects development in Malaysia.
Having started operations in 2013, Sunview is a leading solar power system provider and solar installation company.
It provides turnkey solutions from engineering, procurement, construction, commissioning (EPCC) and subcontracting and other solar related services for solar panel installation in Malaysia.
Sunview is also appointed by Malaysia Debt Venture, owned by the Ministry of Finance (MOF), as an auditor for solar plants.
Over the last eight years, Sunview has completed a total portfolio of more than 200 megawatts of direct current (MWdc) capacity in solar power generation.
Asia Greentech Fund (AGTF), which was incorporated with the direction to invest in green energy and green technology in Asia in response to climate change, is an indirect preference shareholder of Sunview who provides financial support for the company to provide EPCC for RE projects.
Malaysia Venture Capital Management Bhd (MAVCAP), which is a wholly-owned subsidiary of the MOF, is a partner in AGTF.
The MOU entails the responsibilities where WREA will identify and acquire solar plants in Malaysia.
Sunview shall be engaged as the main contractor to carry out repairing and upgrading works for all of these plants.
“We are excited about our collaboration with Sunview as it puts us on an accelerated trajectory to venture into the solar business,” FIHB executive director Datuk Choy Wai Ceong said.
“Sunview’s outstanding track record in their EPCC works and their technical expertise put us in a good position to acquire existing solar farm followed by refurbishment and upgrade works.”
Choy added that the focus of the collaboration between Sunview and WREA, a jointly-controlled entity of FIHB and its group of partners would be on the acquisition of existing solar plants that require upgrade and refurbishment to improve efficiency.
“Our focus will be on existing solar power plants that need upgrades to improve efficiency. With Sunview’s technical knowhow to refurbish and upgrade the assets, we aim to bring their capacity back to an optimum level.
“This will help to generate positive operating cashflow for the group immediately.”
The collaboration and investment into Sunview help to bridge the gap in terms of expertise and technical knowhow for FIHB and would play an important role to ensure a seamless collaboration with China’s Top five power generators, State Power Investment Corporation (SPIC).
“The MOU with Sunview reflects the group’s commitment to venture into the renewable energy business, and with a strategic partnership with Sunview, we look forward to have more EPCC collaboration opportunities in the renewable energy space.
“We are building a synergistic collaboration and partnership that will help to provide a cohesive and comprehensive expansion strategy in the renewable energy ecosystem.”
In September 2021, WREA has signed a MOU with SPIC Energy Malaysia Bhd (SPICM), a wholly-owned subsidiary of SPIC, for both parties to enter into a business collaboration to acquire in part or in whole operating Feed-In Tariff (FiT), Net Metering (NEM) and Large Scale Solar (LSS) solar farm.
The success of these collaborations will put WREA in a good position to be a renewable energy project owner, which will generate positive cashflow and a sustainable recurring income stream for FIHB.
The pivot into the renewable energy segment for FIHB marks a step-up for the group that has shown a strong financial track record in the furniture and construction business.