Northern Solar Holdings Bhd (KL:NORTHERN), a recent entrant to Bursa Malaysia, has pivoted from its earlier strategy by setting its sights on large-scale solar (LSS) projects. The group announced a memorandum of understanding (MOU) with Northwest Electric Power Design Institute Co Ltd (NWEPDI), a subsidiary of the Chinese state-owned energy conglomerate, China Energy Engineering Corporation Ltd.
This marks a notable shift for Northern Solar, which prior to its February listing had emphasized a focus on rooftop solar initiatives rather than utility-scale ventures. The new collaboration indicates a more ambitious trajectory for the solar engineering group.
Under the MOU, both parties intend to jointly pursue engineering, procurement, construction, and commissioning (EPCC) roles for developers awarded contracts under Malaysia’s LSS Petra and LSS Petra 5+ programmes. Combined, the two rounds offer a substantial 4,000 megawatts (MW) of solar capacity.
Should their bids prove successful, Northern Solar and NWEPDI will form a project company with a 51:49 ownership structure, favouring the Malaysian partner. The MOU remains in effect for two years, with an option to extend.
NWEPDI brings deep expertise in infrastructure and power design, and as part of China’s vast state-backed energy ecosystem, could provide Northern Solar with the technical and financial muscle to compete for high-stakes LSS contracts.
Northern Solar also disclosed that the agreement will be governed under Singaporean law, with arbitration handled by the Singapore International Arbitration Centre in the event of disputes.
As of November 2024, the company’s tender book stood at RM1.8 billion, with RM83.2 million in unbilled orders — RM68.6 million of which is tied to EPCC projects.
Following the announcement, Northern Solar’s share price rose 6.8% to 55 sen at Tuesday’s close, translating to a market capitalisation of RM217.58 million. However, the stock remains 12.7% below its IPO price of 63 sen.
The MOU signals a bold new chapter for Northern Solar, potentially positioning the company as a serious contender in Malaysia’s fast-evolving renewable energy landscape.
Comments