Tesco and NESS sign Malaysia’s largest commercial solar Power Purchase Agreement


HONG KONG, CHINA – Media OutReach – 14 July 2020 – Tesco Stores
(Malaysia) Sdn Bhd (Tesco) and NE Suria Satu Sdn Bhd (NESS), a joint-venture
company of PETRONAS and NEFIN Group, have entered into the largest long-term
Power Purchase Agreement (PPA) (Tesco-NESS PPA) for solar energy in Malaysia.
The first phase of the Tesco-NESS PPA will see the installation of solar
photovoltaic (PV) panels on the rooftop spaces of 15 Tesco stores nationwide.
The Tesco-NESS PPA will run for 20 years until 2040.


Once the installation is completed in October 2020, the solar PV
panels will collectively generate about 18 gigawatt hours (GWh) of clean energy
per year, thus reducing approximately 13,624 tonnes of carbon emissions into
the atmosphere. The power generated from the solar PV panels can also light up
as many as 104 Olympic-sized stadiums simultaneously or 804,905 three-bedroom
homes for an entire year.


“The installation of the solar PV panels in 15 out of 62 of our stores
is the first phase in Tesco’s renewable energy push. Eventually, we will be
able to generate clean, renewable energy at most of our stores and in the
process, reduce our carbon emissions. This push in environmental sustainability
is just one of the many ways that we are doing to reduce our impact on the
environment, which already includes measuring and publishing our food waste
data and reducing the usage of single-use plastic bags in our stores,” said
Tesco Chief Executive Officer, Paul Ritchie.


“We are pleased to work with NESS in our first foray into clean
renewable energy as the consortium that forms NESS has proven individual track
records in delivering and maintaining major projects such as this. We look
forward to a long and fruitful partnership with them,” he added.


NESS is a collaboration between PETRONAS through its New Energy
business unit which focuses on providing end-to-end, cost-effective, and
sustainable cleaner energy solutions; and NEFIN Group, which is a renowned
regional bespoke solar developer and asset management group.


NESS’ Director Dr Jay Mariyappan, who is also the Head of PETRONAS New
Energy, said: “We are honoured to be awarded Tesco’s first solar project in
Malaysia. With the collective capabilities of PETRONAS and NEFIN, we are
confident that we will be able to support Tesco in realising its sustainability
goals which ultimately will benefit all of us. This is also in line with our
aspiration to be the leading cleaner energy solutions provider.”


NESS will fully invest in the 15 solar PV project, including the design,
installation, operation and maintenance of the solar PV systems. NESS has
appointed Solarvest as its local Engineering Procurement Construction (EPC)
contractor for this project.


The Tesco-NESS PPA is especially significant for Tesco towards supporting
its parent company, Tesco Group’s goal of becoming a zero-carbon business by


The stores which will be fitted with the solar PV panels are Tesco
Mergong, Tesco Sungai Petani Selatan, Tesco Bukit Mertajam, Tesco Rawang, Tesco
Ipoh, Tesco Station 18, Tesco Klang, Tesco Puchong, Tesco Bukit Puchong, Tesco
Extra Seremban Jaya, Tesco Kulim, Tesco Stargate, Tesco Seberang Jaya, Tesco
Jitra and Tesco Kampar.

About Tesco Stores (Malaysia) Sdn Bhd

Tesco Malaysia was established in May 2002 through its first store in
Puchong, Selangor. Today, it employs over 7,000 employees across 62 stores and
two distribution centres throughout Peninsular Malaysia. In 2013, Tesco paved
the way in online grocery shopping through the launch of Tesco Online which started
in Klang Valley before expanding to Penang, Johor Bahru, Melaka, Negeri
Sembilan and Ipoh.

About NE Suria Satu Sdn Bhd

NESS, a joint venture between Petroliam Nasional Bhd’s subsidiary for
its New Energy business in Malaysia, PETRONAS Power Sdn Bhd and NEFINCO
Malaysia Sdn Bhd, a member of the NEFIN Group. NESS’ focus is on commercial and
industrial projects in Malaysia and the TESCO-NESS PPA is the joint venture’s
first project.


PETRONAS New Energy is PETRONAS’ renewables business that currently
includes M+ by PETRONAS which has more than 50MW of solar solutions under
development with commercial and industrial customers in Malaysia, and its 100%
owned distributed energy company, Amplus Energy Solutions that has more than
650MW of operating and under construction solar projects in India and


Founded by core management team of DuPont Solar Business, legal expert
and investment bankers, NEFIN Group has collectively delivered over 300MW of
utility-scale, commercial and industrial rooftop solar systems regionally. The
mission of NEFIN is about achieving carbon neutrality for companies. The group
offers consulting services such as due diligence, feasibility studies and
lender-technical advice on top of project development, system design, engineering
and asset management. NEFIN Group also offers flexible financing options to
partners who opt for zero investment. Please refer to NEFIN’s website
www.nefinco.com for more information.