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-venturecompany of PETRONAS and NEFIN Group, have entered into the largest long-termPower Purchase Agreement (PPA) (Tesco-NESS PPA) for solar energy in Malaysia.The first phase of the Tesco-NESS PPA will see the installation of solarphotovoltaic (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 PVpanels will collectively generate about 18 gigawatt hours (GWh) of clean energyper year, thus reducing approximately 13,624 tonnes of carbon emissions intothe atmosphere. The power generated from the solar PV panels can also light upas many as 104 Olympic-sized stadiums simultaneously or 804,905 three-bedroomhomes for an entire year.

"The installation of the solar PV panels in 15 out of 62 of our storesis the first phase in Tesco's renewable energy push. Eventually, we will beable to generate clean, renewable energy at most of our stores and in theprocess, reduce our carbon emissions. This push in environmental sustainabilityis just one of the many ways that we are doing to reduce our impact on theenvironment, which already includes measuring and publishing our food wastedata and reducing the usage of single-use plastic bags in our stores," saidTesco Chief Executive Officer, Paul Ritchie.

"We are pleased to work with NESS in our first foray into cleanrenewable energy as the consortium that forms NESS has proven individual trackrecords in delivering and maintaining major projects such as this. We lookforward to a long and fruitful partnership with them," he added.

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

NESS' Director Dr Jay Mariyappan, who is also the Head of PETRONAS NewEnergy, said: "We are honoured to be awarded Tesco's first solar project inMalaysia. With the collective capabilities of PETRONAS and NEFIN, we areconfident that we will be able to support Tesco in realising its sustainabilitygoals which ultimately will benefit all of us. This is also in line with ouraspiration 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 hasappointed Solarvest as its local Engineering Procurement Construction (EPC)contractor for this project.

The Tesco-NESS PPA is especially significant for Tesco towards supportingits parent company, Tesco Group's goal of becoming a zero-carbon business by2050.

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

About Tesco Stores (Malaysia) Sdn Bhd

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

About NE Suria Satu Sdn Bhd(NESS)

NESS, a joint venture between Petroliam Nasional Bhd's subsidiary forits New Energy business in Malaysia, PETRONAS Power Sdn Bhd and NEFINCOMalaysia Sdn Bhd, a member of the NEFIN Group. NESS' focus is on commercial andindustrial projects in Malaysia and the TESCO-NESS PPA is the joint venture'sfirst project.

PETRONAS New Energy is PETRONAS' renewables business that currentlyincludes M+ by PETRONAS which has more than 50MW of solar solutions underdevelopment with commercial and industrial customers in Malaysia, and its 100%owned distributed energy company, Amplus Energy Solutions that has more than650MW of operating and under construction solar projects in India andDubai. 

Founded by core management team of DuPont Solar Business, legal expertand investment bankers, NEFIN Group has collectively delivered over 300MW ofutility-scale, commercial and industrial rooftop solar systems regionally. Themission of NEFIN is about achieving carbon neutrality for companies. The groupoffers consulting services such as due diligence, feasibility studies andlender-technical advice on top of project development, system design, engineeringand asset management. NEFIN Group also offers flexible financing options topartners who opt for zero investment. Please refer to NEFIN's websitewww.nefinco.com for more information.