AWC set to build solar power farm

KUALA LUMPUR: AWC Bhd is in the running to be the first in Malaysia to put up a solar farm.

Group chief executive cum managing director Azmir Merican Azmi Merican anticipates the project to start by the first quarter of 2012.

He declined to elaborate on the project.

"The solar farm will be capable of generating one-megawatt. It will be fed into the national grid and we'll be able to sell power according to the feed-in tariff." Azmir said.

When asked on the investment quantum, he said, "I can't really go into the details because we're still finalising the agreement with a state government agency."

Azmir was speaking to reporters after the company's shareholders' meeting held here yesterday.

About a year ago, the group established a joint-venture company called AWC Solamas Sdn Bhd that provide consultancy services on solar photovoltaic systems.

"Basically, we assist companies to generate their own electricity for own consumption or for sale back to Tenaga Nasional Bhd," he said.

Azmir then highlighted the government has targeted electricity output from renewable sources to reach 985 megawatt by 2015 and two gigawatt by 2020.

This means there is a huge potential for growth in the harnessing of solar power.

AWC's first quarter profits ended September 2011 fell 69 per cent to RM725 million on softer profit contributions from its environment business.

When asked on the company's outlook, he said, "Last year was a bumper year for us. This year, our environment division was affected by the slowdown in the middle east economy."

Meanwhile, on the homefront, AWC's facility management concessions with the federal government is expected to provide recurring income.

Yesterday, AWC announced 1.5 sen a share dividend for the year ended June 2011.