Kinergy Secures Hydropower Virtual PPA With Safran
KUALA LUMPUR, Feb 9 (Bernama) -- Sustainable energy solutions provider Kinergy Advancement Bhd has signed a corporate virtual power purchase agreement (VPPA) with Safran Landing Systems Malaysia to leverage hydropower assets to provide a stable, dispatchable green energy supply.
Kinergy said the VPPA, executed through its energy subsidiary, KAB Energy Holdings Sdn Bhd, covers the generation of renewable electricity with an annual output between 80 and 108 gigawatt-hours over a 21-year tenure from the commercial operation date, with an option to extend.
“Kinergy can support Safran’s green index objectives and set a scalable model for corporates to procure baseload green energy in line with internationally recognised reporting standards,” it said in a statement today.
Kinergy executive deputy chairman and group managing director Datuk Lai Keng Onnsaid that many multinational corporations in Malaysia want to go green faster than the physical infrastructure allows.
“By executing this hydropower-anchored VPPA with Safran, we demonstrate an ongoing commitment to growth and continuity, building on previous renewable energy initiatives,” he said.
Unlike a conventional physical power purchase agreement, a virtual power purchase agreement was a financial contract linked to renewable energy generation.
Through this mechanism, Kinergy delivered renewable electricity to the national grid, while the corporate consumer secured the associated environmental attributes and a financial hedge tied to the renewable output.
Safran’s Malaysian operations have already achieved an estimated 27 per cent net reduction in emissions compared with their 2018 baseline, supported by on-site solar installations, waste-energy utilisation and efficiency upgrades at its Sendayan Techvalley facility.
-- BERNAMA