In a development that could help meet the energy requirements of data centers, Hatten Land Limited (惠胜置地有限公司) (“Hatten Land”), said that its wholly-owned subsidiary, Hatten Edge Pte. Ltd. (“Hatten Edge”), has entered into a joint venture agreement with NEFIN Pte. Ltd. to develop, construct, and operate renewable energy projects, with a focus on solar energy generation.
This will be for the Singapore and Malaysia regions, the company said in a statement. NEFIN Pte. Ltd is part of NEFIN Group (“NEFIN Group”), a green independent power producer (IPP) offering bespoke carbon neutral technologies & financing solutions in Asia Pacific. NEFIN Group, funded by ACEN Corp., has collectively installed over 3,400 MW of utility-scale, commercial and industrial renewable energy systems.
ACEN is listed in the Philippines (PSE: ACEN) and is part of the Ayala Corporation, one of the largest conglomerates in Philippines. Hatten Land Limited is one of the leading property developers in Malaysia specialising in integrated residential, hotel and commercial developments.
As per the joint venture agreement, there is a funding target of USD10 million and NEFIN Group has committed to invest 90% of the USD10 million as well as undertake the primary role of funding, fund raising support and establishing governance controls in relation to projects undertaken by the joint venture. Hatten Edge will take on the primary role of developer, operator, and manager of the renewable energy projects under the joint venture.
Chong Bor Hung, NEFIN Group’s Head of Business Development and Managing Director (Malaysia), stated:
“NEFIN is determined to expand further into the Southeast Asia market as there is great potential with many governments and large corporations stepping up on their green plans and injecting funds into renewable energy. One of the keys to our sustained growth is strategic partnerships. We provide funding and corporate support for our partners, including MNCs and public listed companies throughout APAC, to help them grow and achieve their renewable energy goals.”
Develop, Construct & Operate RE Projects
The USD10 million raised will be invested by Hatten Land to develop, construct, and operate renewable energy projects, with capacity of approximately 15MWp, with a focus on solar energy generation, in Singapore and Malaysia. Hatten Land expects green energy generated from 15MWp solar projects will generate approximately 18,000 MWh per year, the equivalent of powering more than 5,000 three-room flats for an entire year, and reduce approximately 340,000 tonnes of carbon dioxide over project lifespan, equivalent to planting more than 644,000 trees.
Further, Hatten Energy will own, operate, and maintain the solar PV systems, supplying and selling clean electricity to businesses for a contract period of typically 15 years to 20 years under the PPA. Reik Ong, General Manager of Hatten Energy, said:
“With sustained high prices of fossil fuels, lower costs of solar PV photovoltaics (PV) and a greater emphasis on ESG, there are stronger value propositions and better cost efficiencies for a wider adoption of solar energy as energy demand continues to rise. We see growing interest from enterprises in Southeast Asia on solar energy adoption and together with NEFIN Group, we are fully ready to support their growing need for green energy and reduce their dependence on fossil fuels.”
In addition, Hatten Energy can generate RECs from the solar PV systems, thereby creating another revenue and cash flow stream for the business. RECs are market-based instruments substantiating that electricity has been generated from renewable energy sources. Hatten Energy has a current project pipeline of 10MWp.
Hatten Energy has a current project pipeline of 10MWp, expecting to gain revenue from the supply of clean energy and generation of Renewable Energy Certificates (“RECs”).
More recently, Hatten Renewable Assets Pte Ltd (“HRA”) has entered into a PPA with Trend Technologies Singapore Pte. Ltd. (“Trend Technologies Singapore”), where Trend Technologies Singapore will purchase the electricity for 21 years generated from the rooftop solar PV power system installed and developed by HRA.
Trend Technologies Singapore is part of Trend Technologies, a vertically integrated mechanical solutions provider specializing in the areas of metal stamping, metal fabrication and injection molding.
Growing Energy Demand in SEA
According to International Energy Agency’s Southeast Asia Energy Outlook 2022, energy demand in Southeast Asia has increased on average by around 3% a year over the past two decades, and this trend continues to 2030 under today’s policy settings. With electricity demand expected to grow rapidly in the coming decades in Southeast Asia, an increasing share will be met by variable renewable sources.
Between 2016 and 2020, annual average energy investment in Southeast Asia was around USD70 billion, of which around 40% went to clean energy technologies – mostly solar photovoltaics (“PV”), wind and grids. In Singapore, solar energy is the most promising renewable energy source and Singapore’s Energy Market Authority aims to deploy at least 2 gigawatt-peak (GWp) of solar energy by 2030.
In Malaysia, the government’s renewable target for 2025 has risen from 20 per cent in the 2018 National Energy Plan to 31 per cent in its recent Twelfth Malaysia Plan. Its aim to have 31 per cent of total power capacity come from renewables is supported by strong solar power growth, said Fitch Solutions Country Risk and Industry Research.