As JAKS moves forward in creating a sustainable tomorrow, our involvement in renewable energy further strengthens our commitment to the betterment of the environment as well as the surrounding communities.
In March 2021, JAKS Solar Power Sdn Bhd, a wholly-owned subsidiary of JAKS, was awarded for the fourth cycle of the large scale solar under Package 2 for the capacity of 50 MW ("LSS4"), our first pilot project. This project rides on Global Environmental, Social, and Governance ("ESG") standards / Renewable Energy movement. JAKS is currently working to incorporate ESG as core of our business as we understand how important the ESG will impact our business strategy.
We have signed the power purchase agreement with TNB in August 2021 and have successfully achieved financial close and commenced operation in March 2022.
Commercial operation of the LSS4 project is targeted in year 2023 with a 25-year concession period.
This project will contribute to Malaysia's target of achieving renewable energy mix and to reach carbon neutrality as early as 2050 under the United Nations Climate Change Conference 2021 ("COP 26").