KUALA LUMPUR (Mar 10): AT Systematization Bhd ( Financial Dashboard) has gotten the greenlight from Sustainable Energy Development Authority Malaysia (SEDA) to supply renewable solar energy to Tenaga Nasional Bhd.
The ACE-listed company announced to Bursa Malaysia this evening that its unit AT Engineering Solution Sdn Bhd (ATES) has secured the Feed-in Approval (FiA) from SEDA to supply up to 425 kilowatts (kW) of renewable energy.
“ATES is expected to sign an agreement with Tenaga Nasional Berhad ( Financial Dashboard) for the sale and delivery of renewable energy by ATES to Tenaga (fundamental: 1.3; valuation: 1.8) for a concession period of 21 years,” said AT Systematization (fundamental: 2.1; valuation: 0.3) in the announcement.
“SEDA has set a fixed rate-tariff of 69.77 sen per kWh and additional bonus rate-tariff ranging from five sen per kWh to 17.22 sen per kWh, at which ATES can sell electricity to Tenaga during the concession period,” it added.
ATES will be building a 425kW solar power plant on its existing factory in Bayan Lepas, Penang, by December this year. It estimates the plant would be able to generate RM11 million worth of renewable energy, during the concession period of 21 years.
Currently, AT Systematization said it is not able to determine the exact quantum of funds needed for the construction, nor the breakdown of funding.
AT Systematization’s shares rose half sen or 5% to 10.5 sen today, with 6.65 million shares done, giving it a market capitalisation of RM39.37 million.
Tenaga on the other hand, saw its share price appreciated four sen or 0.27% to RM14.66, with 9.72 million shares traded, valuing it at RM82.51 billion.
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