Malaysia is blessed with abundant sunlight all year round and the Malaysian Government has adopted policies to encourage the development of the solar industry, specifically to drive awareness of the benefits of solar photovoltaic (“Solar PV”), e.g. improving energy security and reducing carbon emissions.
With an installed capacity greater than 508 GWs worldwide and the annual addition of about 106 GWs in the coming year, Solar PV technology has become an increasingly important energy supply option. While the majority of operating solar projects are in developed economies, the significant fall in Solar PV technology prices coupled with rising costs of fossil fuels have driven fast-growing interest in Solar PV technology in emerging economies in Southeast Asia reducing the need for subsidies as well as enabling solar power to compete with other power generation options.
Tex Cycle’s nature of business requires high usage of electricity due to recycling & recovering activities in an extensive volume and variation of waste daily. As such, the cost for day to day operation is high. By using NEM (net energy metering) scheme, over 900 panels with 318.5kwp capacity installed since November 2019 on top of the roof of Tex Cycle’s facility, the effective savings to the company is approximately 40% of the electricity cost per annum.
This effort is also in line with the Malaysian Government which has adopted policies to encourage the development of the solar industry, specifically to drive awareness of the benefits of solar photovoltaic (“Solar PV”), e.g. improving energy security and reducing carbon emissions.
With that being said, another venture by the Group would thus be to diversify the renewable energy portfolio by targeting the Solar Energy sector with our very own running Solar Net Energy Metering (“NEM”) system since November 2019. Solar has been booming recently with the awareness given from the relevant ministries in Malaysia which Tex Cycle looking forward to participate and playing a part in it as well.
The Group wishes to embrace CSR and Sustainability by reducing carbon footprint and encourage use of clean energy from the Sun as part of our business model. We are also working out methods to help supply solar power with the best possible financial deals and lowered risk to targeted customers. For every one megawatt of solar power generated from the solar panels, customers will be able to reduce twenty thousand tonnes of carbon dioxide which is substantial. Solar panels on rooftop of businesses like factories will also significantly reduce the heat on the roof and the premises.
As such a shareholders’ agreement has been signed on 20 March 2020 between Tex Cycle Sdn Bhd (“Tex Cycle”) and EFS Revision Energy Sdn Bhd (“EFS”) to establish a joint venture company (“JV Co”) named TC Champ Sdn Bhd (soon to be known as EFS MYSolar Sdn Bhd), which will identify, evaluate and execute strategic business opportunities in the solar energy sector. Our partner, EFS’s principal activity is providing engineering, procuring, construction, commissioning and consultancy services related to renewable energy and energy efficiency. They were also responsible for the success of Tex Cycle’s own Solar NEM in Klang. For more details on EFS, please visit their website at https://efsrevision.com/