Tesco Malaysia Powers 15 Stores with Solar Energy

Tesco and NESS sign Malaysia's largest commercial solar Power Purchase Agreement

HONG KONG, CHINA - Media OutReach - 14 July 2020 - Tesco Stores (Malaysia) Sdn Bhd (Tesco) and NE Suria Satu Sdn Bhd (NESS), a joint-venture company of PETRONAS and NEFIN Group, have entered into the largest long-term Power Purchase Agreement (PPA) (Tesco-NESS PPA) for solar energy in Malaysia. The first phase of the Tesco-NESS PPA will see the installation of solar photovoltaic (PV) panels on the rooftop spaces of 15 Tesco stores nationwide. The Tesco-NESS PPA will run for 20 years until 2040.


Once the installation is completed in October 2020, the solar PV panels will collectively generate about 18 gigawatt hours (GWh) of clean energy per year, thus reducing approximately 13,624 tonnes of carbon emissions into the atmosphere. The power generated from the solar PV panels can also light up as many as 104 Olympic-sized stadiums simultaneously or 804,905 three-bedroom homes for an entire year.


"The installation of the solar PV panels in 15 out of 62 of our stores is the first phase in Tesco's renewable energy push. Eventually, we will be able to generate clean, renewable energy at most of our stores and in the process, reduce our carbon emissions. This push in environmental sustainability is just one of the many ways that we are doing to reduce our impact on the environment, which already includes measuring and publishing our food waste data and reducing the usage of single-use plastic bags in our stores," said Tesco Chief Executive Officer, Paul Ritchie.


"We are pleased to work with NESS in our first foray into clean renewable energy as the consortium that forms NESS has proven individual track records in delivering and maintaining major projects such as this. We look forward to a long and fruitful partnership with them," he added.


NESS is a collaboration between PETRONAS through its New Energy business unit which focuses on providing end-to-end, cost-effective, and sustainable cleaner energy solutions; and NEFIN Group, which is a renowned regional bespoke solar developer and asset management group.


NESS' Director Dr Jay Mariyappan, who is also the Head of PETRONAS New Energy, said: "We are honoured to be awarded Tesco's first solar project in Malaysia. With the collective capabilities of PETRONAS and NEFIN, we are confident that we will be able to support Tesco in realising its sustainability goals which ultimately will benefit all of us. This is also in line with our aspiration to be the leading cleaner energy solutions provider."


NESS will fully invest in the 15 solar PV project, including the design, installation, operation and maintenance of the solar PV systems. NESS has appointed Solarvest as its local Engineering Procurement Construction (EPC) contractor for this project.


The Tesco-NESS PPA is especially significant for Tesco towards supporting its parent company, Tesco Group's goal of becoming a zero-carbon business by 2050.


The stores which will be fitted with the solar PV panels are Tesco Mergong, Tesco Sungai Petani Selatan, Tesco Bukit Mertajam, Tesco Rawang, Tesco Ipoh, Tesco Station 18, Tesco Klang, Tesco Puchong, Tesco Bukit Puchong, Tesco Extra Seremban Jaya, Tesco Kulim, Tesco Stargate, Tesco Seberang Jaya, Tesco Jitra and Tesco Kampar.

The issuer is solely responsible for the content of this announcement.
About Tesco Stores (Malaysia) Sdn Bhd
About Tesco Stores (Malaysia) Sdn Bhd

Tesco Malaysia was established in May 2002 through its first store in Puchong, Selangor. Today, it employs over 7,000 employees across 62 stores and two distribution centres throughout Peninsular Malaysia. In 2013, Tesco paved the way in online grocery shopping through the launch of Tesco Online which started in Klang Valley before expanding to Penang, Johor Bahru, Melaka, Negeri Sembilan and Ipoh.

About NE Suria Satu Sdn Bhd (NESS)

NESS, a joint venture between Petroliam Nasional Bhd's subsidiary for its New Energy business in Malaysia, PETRONAS Power Sdn Bhd and NEFINCO Malaysia Sdn Bhd, a member of the NEFIN Group. NESS' focus is on commercial and industrial projects in Malaysia and the TESCO-NESS PPA is the joint venture's first project.


PETRONAS New Energy is PETRONAS' renewables business that currently includes M+ by PETRONAS which has more than 50MW of solar solutions under development with commercial and industrial customers in Malaysia, and its 100% owned distributed energy company, Amplus Energy Solutions that has more than 650MW of operating and under construction solar projects in India and Dubai. 


Founded by core management team of DuPont Solar Business, legal expert and investment bankers, NEFIN Group has collectively delivered over 300MW of utility-scale, commercial and industrial rooftop solar systems regionally. The mission of NEFIN is about achieving carbon neutrality for companies. The group offers consulting services such as due diligence, feasibility studies and lender-technical advice on top of project development, system design, engineering and asset management. NEFIN Group also offers flexible financing options to partners who opt for zero investment. Please refer to NEFIN's website www.nefinco.com for more information.






14 Jul 2020

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