SD Property first to harness solar energy under ministry's CREAM initiative
KUALA LUMPUR: Sime Darby Property Bhd, in collaboration with Tenaga Nasional Bhd (TNB), has become the first company to harness the power of solar energy under the country's National Energy Transition Roadmap (NETR) via community renewable energy aggregation mechanism (CREAM) initiative.
The pioneering project is the first of its kind in the country under the newly-established CREAM framework, introduced by the Energy Transition and Water Transformation Ministry in March 2025.
The initiative empowers community-based renewable energy production by leveraging local energy generators and aggregators (LEGA) to decentralise green electricity generation.
SD Property group managing director and chief executive officer Datuk Seri Azmir Merican, said its participation in the CREAM initiative with TNB presents a practical and scalable model to unlock solar energy potential within its townships.
"By leasing roof spaces from residential properties, without requiring homeowners to install panels, we enable clean energy generation that supports our nearby commercial and industrial developments.
"This approach complements our broader decarbonisation strategy, aligns with national energy objectives, and directly contributes to our emissions reduction targets," he said in a statement.
Working with TNB's solar subsidiary GSPARX Sdn Bhd, SD Property will enter into lease agreements with residential homeowners interested in participating in this programme, starting with those in the City of Elmina.
Rooftops of participating homes will be utilised to generate electricity, which will be exported via the local distribution line within a 5km radius for use at SD Property's commercial and industrial developments.
The CREAM mechanism enables local green consumers (LGC) such as businesses and commercial users to source electricity from LEGA participants through TNB's distribution network.
It allows homeowners to lease rooftops to third parties who manage and aggregate these spaces into efficient solar photovoltaic (PV) power systems.
The latest collaboration between the two parties comes on the heels of a joint venture established by SD Property and TNB's GSPARX in July 2024, focusing on financing, developing and operating rooftop solar generation projects across selected assets and properties in the former's portfolio.
This followed an MoU between the two parties in 2023 to explore sustainable energy infrastructure including solar, EV charging and microgrid systems across the group's townships.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
DNeX, PowerChina unit to explore, develop key RE ventures in Malaysia
KUALA LUMPUR: Dagang NeXchange Bhd has partnered with Sinohydro Corporation (M) Sdn Bhd to explore and develop key initiatives across Malaysia's growing renewable energy (RE) sector. Sinohydro Malaysia serves as Power Construction Corporation of China Ltd's (PowerChina) subsidiary in Malaysia, actively undertaking major construction and engineering projects across the country since 1998. The partnership reflects both sides' commitment to innovation, supporting Malaysia's clean energy transition, economic growth and local upskilling through technology transfer and global best practices. It outlines several key areas of cooperation designed to support the government's vision of accelerating Malaysia's clean energy agenda in line with the National Energy Transition Roadmap. This includes RE project development, technology transfer and best practices, sustainable rare earth exploration, innovation and enhancement, as well as local talent development. DNeX group chief executiv officer Faizal Sham Abu Mansor said the collaboration will not only unlock new RE potential across the nation but also enable us to embrace advanced technologies like small modular reactor (SMR). "This opportunity will greatly complement our on-going sustainability plans in the wnergy sector as we intend to move our oil and gas portfolio closer to bridge fuel like natural gas in lieu of oil and in our IT sector which is focusing more and more on provision of sovereign cloud and artificial intelligence (AI) services. "This requires large amount of energy, and partnering with Sinohydro enables us to moonshot ourselves in the field of SMR and ensure our products and service offerings are not only reliable but a carbon-free power source," he added. Faizal said Sinohydro's joint commitment to clean rare earth extraction aligns perfectly with our vision for responsible resource management and industrial growth. "We are particularly excited about the prospect of developing local expertise and creating high-value jobs in these critical sectors. "As we accelerate our shift towards a greener future, this partnership represents a milestone in our renewable energy transition and expansion from our traditional oil and gas business reinforcing our dedication to environmental stewardship," he said. Sinohydro has been involved in major power projects in Malaysia, including the 2,400 megawatt (MW) Bakun hydroelectric plant, the largest in Malaysia and Southeast Asia. Other key projects include the Connaught Bridge and Tanjung Kidurong power plants, Hulu Terengganu and Murum hydro plants, the LSS3 Coara Marang solar project and Telekosang small hydro plants. It is currently building the Baleh hydroelectric project and the Miri combined cycle gas turbine plant.
Malaysian Reserve
9 hours ago
- Malaysian Reserve
TNB insulated as new electricity tariff kicks in from July
The EC confirms that base electricity tariff for Peninsular Malaysia under RP4 has been set at 45.4 sen/kWh, 13.6% higher than RP3 by RUPINDER SINGH TENAGA Nasional Bhd (TNB) is expected to remain operationally resilient under the new electricity tariff framework announced by the Energy Commission (EC), with analysts maintaining that the group's earnings outlook remains largely intact despite structural changes to the tariff mechanism. The EC last week confirmed that the base electricity tariff for Peninsular Malaysia under Regulatory Period 4 (RP4) has been set at 45.4 sen/kilowatt-hour (kWh) for the period between July 1, 2025 and Dec 31, 2027. This is 13.6% higher than the RP3 base tariff of 39.95 sen, but slightly lower than the previously approved 45.62 sen/kWh for RP4. While the hike appears substantial on paper, analysts said the net impact on TNB is neutral given the continued application of the incentive-based regulation (IBR) framework, which guarantees a regulatory return of 7.3% on its regulated asset base (RAB). 'The IBR framework provides regulatory adjustments such that TNB ultimately earns the regulatory rate of return on the regulated asset base,' said CIMB Securities Sdn Bhd, adding that the RAB is expected to grow 'healthily', supported by RM26.6 billion in base capital expenditure (capex) and RM16.3 billion in contingent capex during RP4. TNB is forecast to post a core net profit of RM4.36 billion in financial year 2025 (FY25), up 3.6% from RM4.21 billion in FY24. Earnings per share (EPS) is expected to rise to 75.2 sen, with dividend yields of 3.2%-3.9% projected for FY25-FY27. TNB is currently trading at 7.5 times enterprise value (EV)/ Ebitda based on FY25 forecasts, CIMB Securities noted. Importantly, the EC also announced the replacement of the imbalance cost pass-through (ICPT) mechanism with a new automatic fuel adjustment (AFA) system that allows monthly adjustments based on market fuel prices and exchange rates, rather than semi-annual reviews under ICPT. Public Investment Bank Bhd (PublicInvest) said the AFA's monthly cadence will result in 'faster recovery of fuel and generation costs' and will ease TNB's working capital burden by reducing the lag in subsidy payments. 'We opine this new adjustment mechanism to be more beneficial to TNB compared to the previous ICPT,' it said. MIDF Amanah Investment Bank Bhd (MIDF Investment) similarly welcomed the shift, noting that 'any monthly variance in fuel and power purchase cost will be automatically adjusted, providing a timelier cost pass through to consumers rather than every six months'. It raised its target price (TP) for TNB to RM16.40 from RM15.13 previously, citing better cashflow clarity and long-term growth prospects. Consumers to See Limited Impact For residential users, the new tariff schedule comes with an energy efficiency incentive (EEI) that will cushion monthly bills. According to TNB, households consuming between 50kWh and 900kWh per month will see electricity bills reduced by 1% to 15%, thanks to rebates of up to 25 sen/kWh. Customers consuming above 1,000kWh will not qualify for the EEI and will be subject to AFA surcharges depending on fuel prices. For instance, under the current structure, users consuming above 1,500kWh are charged an ICPT surcharge of 10 sen/kWh. The EC also streamlined the customer categorisation structure: Tariffs will now be split by voltage level (domestic vs non-domestic, and low/medium/high voltage) instead of activity-based groupings. MIDF Investment added that 23.6 million domestic users and low-voltage non-domestic users with consumption of 200kWh and below will largely be unaffected by the tariff changes. Sector Outlook Stable Electricity demand remains robust. In May, the country registered three all-time highs in peak demand, with the latest at 20.75 gigawatts (GW) on May 27. MIDF Investment projects electricity demand growth of 3.5% to 4.5% in 2025, outpacing the country's GDP growth. While the new AFA mechanism introduces a more dynamic pricing regime, analysts agree that the regulatory safeguards remain intact for TNB. 'Regardless of tariff changes, the IBR framework ensures stable returns,' CIMB Securities said. PublicInvest kept its 'Neutral' call on the stock, while MIDF Investment reiterated a positive stance on the utilities sector as a whole, with TNB well-positioned as a beneficiary of both energy transition initiatives and domestic demand growth. This article first appeared in The Malaysian Reserve weekly print edition
Malaysiakini
11 hours ago
- Malaysiakini
TNB touts cheaper electricity bills for majority under new tariffs
Tenaga Nasional Berhad (TNB) is touting that the majority of households in Peninsular Malaysia will have cheaper electricity bills once the new power tariff rates take effect next month. In an infographic published on its website, the energy provider said bills may be lower by up to RM10.80, depending on power consumption.
