KUALA LUMPUR: Federal International Holdings Bhd (FIHB) has today, via its joint-controlled entity, Warrants RE Assets Sdn Bhd (WREA), signed a memorandum of understanding (MoU) with Fabulous Sunview Sdn Bhd (FSSB) for business collaboration in the renewable energy projects development in Malaysia.

WREA will identify and acquire solar plants in Malaysia under the terms of the MoU, with FSSB serving as the main contractor for all repairs and upgrades of the plants.

FIHB executive director Datuk Choy Wai Ceong said the collaboration with FSSB puts the company on an accelerated trajectory to venture into the solar business.

"FSSB's outstanding track record in their engineering, procurement, construction, commissioning (EPCC) works, and their technical expertise put us in a good position to acquire existing solar farm followed by refurbishment and upgrade works," he said in a statement today.

Started operations in 2013, FSSB is a solar power system provider and solar installation company and provides turnkey solutions from EPCC and subcontracting and other solar-related services for solar panel installation in Malaysia.

FSSB is also appointed by Malaysia Venture Capital Management Bhd (MAVCAP) as an auditor for solar plants.

Over the last eight years, FSSB has completed a total portfolio of more than 200 MWdc capacity in solar power generation.

Asia Greentech Fund (AGTF), which incorporated with the direction to invest in green energy and green technology in Asia in response to climate change, is an indirect preference shareholder of FSSB who provides financial support for the company to provide EPCC for RE projects.

MAVCAP, a wholly-owned subsidiary of the Ministry of Finance (MoF), is a partner in AGTF.

Choy said the focus of the collaboration between FSSB and WREA would be on the acquisition of existing solar plants that require upgrade and refurbishment to improve efficiency.

"Our focus will be on existing solar power plants that need upgrades to improve efficiency. With FSSB's technical know-how to refurbish and upgrade the assets, we aim to bring their capacity back to an optimum level.

"This will help to generate positive operating cash flow for the company," he said.

The collaboration and investment into FSSB help bridge the gap in expertise and technical know-how for FIHB and would play an important role in ensuring a seamless partnership with China's State Power Investment Corporation (SPIC).

"The MoU with FSSB reflects the FIHB's commitment to venture into the renewable energy business, and with a strategic partnership with FSSB, we look forward to having more EPCC collaboration opportunities in the renewable energy space.

"We are building a synergistic collaboration and partnership that will help to provide a cohesive and comprehensive expansion strategy in the renewable energy ecosystem," Choy said.

In September 2021, WREA has signed an MoU with SPIC Energy Malaysia Bhd (SEMB), a wholly-owned subsidiary of SPIC, for both parties to enter into a business collaboration to acquire in part or whole operating feed-in tariff (FiT), net energy metering (NEM) and large scale solar (LSS) farm.

The success of these collaborations will put WREA in a good position to be a renewable energy project owner, which will generate positive cash flow and a sustainable recurring income stream for FIHB.