British groceries and general merchandise retailer Tesco Plc (LON:TSCO) has sealed an off-take contract that will enable it to equip 15 of its stores in Malaysia with solar power.
The 20-year power purchase agreement (PPA) was signed with NE Suria Satu Sdn Bhd (NESS), a joint-venture company of Malaysian oil and gas company Petronas and NEFIN Group, the partners said on Tuesday. Under its terms, NESS will install rooftop photovoltaic (PV) panels atop 15 of Tesco Malaysia’s locations under the first phase of a boraded renewable energy “push.”
The contract, which will expire in 2040, will provide the retailer with around 18 GWh of electricity per year that will be enough to offset more than 13,500 tonnes of carbon dioxide (CO2) emissions. The installation of the solar arrays is planned to be completed in October.
NESS will take care of financing all 15 projects, including their design, installation, operation and maintenance. Malaysian solar solutions provider Solarvest Holdings Bhd’s (KLSE:SLVEST) Solarvest Energy will be the engineering, procurement and construction (EPC) contractor.
Tesco has 62 stores in its retail chain in Malaysia. The UK group has set a target to source 65% of its electricity from renewables by 2020 and 100% by 2030. Its ultimate goal is to become a zero-carbon business by 2050.