In a statement yesterday, the NCER said the PPP project would be funded by the Japan International Cooperation Agency (JICA) and that this study would be spearheaded by the private sector of Japan, namely, Panasonic Corp in association with NEWJEC Inc.
The feasibility study in the NCER will encompass the development of energy supply and investments derived from photovoltaic energy generation stations (PEGS).
NCIA chief executive Datuk Redza Rafiq said the northern region of Malaysia had been identified as a strategic location for the project based on its geographical factor.
He said the sun irradiance in this region was averagely higher than any other part in Malaysia and this suited well the plan for the proposed PEGS in the NCER.
“In line with the Economic Transformation Programme, NCIA will leverage on the private sector companies to increase the diversification of the energy industry and encourage the use of renewable energy sources such as solar.
“As a regional enabler, NCIA will then leverage on its good relationship with the relevant authorities in providing the necessary assistance towards the successful execution of this feasibility study,” Redza said in a statement.
JICA director Takashi Baba said JICA had promoted a preparatory survey scheme to identify and prepare PPP infrastructure projects that could be candidates for private sector investment finance.
“We engaged Panasonic Corp and NEWJEC to conduct a survey on the photovoltaic power generation (Econation) project with the cooperation of the NCIA,” he said.
“The implementation of the survey is actively supported by JICA, and based on the results of the survey and subsequent due diligence, JICA will consider financing the project and fund the application of the PPP scheme in order to contribute to the development in the NCER,” he said.
Meanwhile, Panasonic Eco Solutions Co (Japan) general manager of global marketing division Okumura said: “Panasonic has been in Malaysia since 1965, and this will be our new contribution to Malaysia and its people for all the support that we have received all these years.
“By utilising our experience in solar energy and NEWJEC’s expertise in developing energy solutions, I believe the feasibility study will substantiate the advantage of our unique scheme,” Okumura said.
The objective of the study is to determine the feasibility of the project and the operational set-up of the project.
The study will also determine the financial model of the project and the socio-economic benefits to be gained by the people in the NCER.
The feasibility study is scheduled to start in January and be completed in August next year.