In June 2022, Taliworks completed its maiden foray into the renewable energy sector with the acquisition of 4 brownfield solar asset companies together with its operations and maintenance company in the vicinity of KLIA with an aggregate capacity of 19 MWp:
- TR Sepang Sdn. Bhd. (“TR Sepang”) (previously known as Fortune 11 Sdn. Bhd.), operates a 5.0 MWp groundmounted solar photovoltaic project, built on a palm oil plantation area accessible via Jalan Pekeliling, Sepang;
- TR SaTerm Sdn. Bhd. (“TR SaTerm”) (previously known as Corporate Season Sdn. Bhd.), operates a 4.0 MWp rooftopmounted solar project above the satellite terminal of KLIA;
- TR CPark Sdn. Bhd. (“TR CPark”) (previously known as Silverstar Pavilion Sdn. Bhd.), operates two separate 5.0 MWp rooftop-mounted solar projects within two long-term car parks at KLIA; and
- Taliworks Renewables Operations Sdn. Bhd. (previously known as TerraForm Global Operating (Malaysia) Sdn. Bhd.), provides end-to-end operations and maintenance services to the above solar assets.
TR Sepang, TR SaTerm and TR CPark operate under the Feed-in Tariff (“FIT”) programme administered by the Sustainable Energy Development Authority (“SEDA”), a statutory body formed under the Sustainable Energy Development Authority Act 2011. The FIT programme was designed to encourage development of renewable energy by guaranteeing grid access and favourable tariff rates. These solar assets achieved Commercial Operations Date in 2013.
The acquisition provides Taliworks with 3 diversified premium solar asset companies in Malaysia generating stable operating cashflow. The addition of a strong and capable management team now bolsters Taliworks’s capability in the renewables space. With the completion of the acquisition of the four solar projects in the second quarter of 2022, the Group consolidated the financial results from the Renewable Energy division from the date of acquisition. Taliworks started recognising revenue under the newly created renewables segment from second quarter of 2022 from sales of electricity generated from their solar photovoltaic plants.
The management team is working hard on various performance improvements and risk mitigation initiatives. For example, at one of the solar project sites, TR SaTerm had undergone solar panel replacement to increase its panel efficiency and it is anticipated that the financial performance of the Renewable Energy division will improve after the replacement, which was completed in the last quarter of 2022.