Recently, the Malaysian National Petroleum Corporation (PETRONAS) signed an agreement to invest in the photovoltaic start-up SOLSEnergy Sdn Bhd. This investment aims to provide renewable energy to residents of Malaysia and some small and medium enterprises. SOLS Energy is a rooftop photovoltaic company headquartered in Kuala Lumpur. Its business focuses mainly on the roof and small and medium enterprise markets.
According to a press release, the transaction between PETRONAS Ventures and SOLS Energy, a subsidiary of Petronas, will be completed by the end of July 2020. However, the company did not disclose the amount of the transaction.
SOLS Energy CEO Raj. Ridvan (Raj. Ridvan) said. "We believe that the application of photovoltaic systems in Malaysia is at a turning point. With the government's gradual regulation of net metering electricity rates and the reduction of equipment costs. We see a huge potential market in Malaysia and Southeast Asia."
Petronas added. This investment marks the company's second venture capital investment plan to realize its commitment to the international renewable energy sector as a partner in the solution.
Mercom previously reported that. In April 2019, Petronas acquired Singapore energy company Amplus Energy Solutions Pte Ltd (M+), which is backed by financial institution ISquad Capitals. This is the first transaction for Petronas to enter the international renewable energy market. M+ company mainly focuses on the Indian industrial and commercial market. Provide customers with solutions for rooftop distributed and ground-mounted photovoltaic power generation. M+ company has a potential operation and development capacity of 500MW. And it has developed and reserved 275 photovoltaic projects in 20 states in India.
In fact, international oil and gas giants such as BP, Tokyo Gas, Petronas, Reliance Industries, Shell and Total have been important acquirers of photovoltaic companies. Mercom Capital Group recently released the "Global Photovoltaic Financing and M&A Report for the Second Quarter and the First Half of 2020". In the first half of 2020, a total of 14.7GW of photovoltaic projects were acquired globally. Among them, the total installed capacity acquired by oil and gas companies is about 6.5GW, accounting for about 45% of the total.
At the same time, Malaysia launched a 1GW photovoltaic tender in the first half of the year. This tender is the fourth round of large-scale tenders launched by the government to attract investment in the renewable energy sector. It is also the largest renewable energy tender in Malaysia's history. It can be seen that after the outbreak of COVID-19, the government has made great efforts to revitalize the local economy.
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