VCI Global Commences Renewable Energy Expansion with New Solar Farm

VCI Global's Strategic Move into Renewable Energy

VCI Global Limited (NASDAQ: VCIG), headquartered in Kuala Lumpur, Malaysia, is making impressive strides in the renewable energy sector. The company has recently announced its plans to acquire a solar farm located in North Macedonia, marking the beginning of an ambitious series of renewable energy asset acquisitions.

Details of the Solar Farm Acquisition

The acquisition involves a solar farm with a capacity of 1.14 megawatts (MW) and is valued at approximately US$1.26 million (or about €1.2 million). This initiative is part of VCI Global's strategy to strengthen its foothold in the European renewable energy market. As per the agreement, this acquisition is contingent upon due diligence and the finalization of a definitive agreement.

High-Performance Solar Technology

This newly acquired solar farm is equipped with cutting-edge Huawei Technology inverters, allowing it to reach a system performance ratio exceeding 90%. This efficiency means the solar farm can reliably operate at over 90% of its theoretical maximum output, regardless of external conditions. The inverters play a crucial role by converting the direct current (DC) generated by the solar panels into alternating current (AC), which is essential for distribution across the national power grid.

Benefits of the Power Purchase Agreement

The project has a Power Purchase Agreement (PPA) with Mega Concept LLC Skopje, ensuring a stable revenue stream based on HUPX pricing. Additionally, the facility will generate additional income through the sale of carbon credits, enhancing the investment's profitability. The solar farm is expected to provide robust financial returns, with a projected payback period of around 9 years over its projected 30-year operational life.

Navigating North Macedonia's Energy Landscape

North Macedonia has made considerable strides in solar energy implementation, contrasting its historical reliance on lignite coal and gas, which accounted for approximately 45% of its electricity generation. The nation has set ambitious goals for renewable energy under its National Energy and Climate Plan (NECP), aiming for a 38% renewable energy share in final energy consumption by 2030 and increasing it to 42% by 2040. As of late 2023, the country has ramped up its solar capacity to 535 MW, a substantial rise from 190 MW just a year prior, reflecting a significant transition in its energy mix.

Future Growth and Acquisitions

VCI Global anticipates that this solar farm acquisition is just the beginning of a broader strategy to delve deeper into the European renewable energy sector. The firm has enlisted the help of OTB Solutions, a local consulting firm, to further identify and secure additional solar farm opportunities in the region.

Leadership Vision for Renewable Energy

Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global, emphasized the company's commitment by stating, "This is the beginning of a series of solar farm acquisitions that VCIG will undertake. We are targeting solar farms with robust grid connections and supportive government policies, which will allow us to build a sustainable asset portfolio across Southeast Asia and Europe." This strategic vision aims to position VCI Global as a key player in the growing renewable landscape.

About VCI Global Limited

VCI Global Limited is recognized as a diversified holding company that operates through five primary sectors: Capital Market Consultancy, Fintech, Real Estate, AI & Robotics, and Cybersecurity. Each sector is positioned for growth, with specialized teams dedicated to providing solutions, consultancy services, and innovative technologies. The company’s commitment to fostering innovation and delivering exceptional value has led to its expansive presence across the Asia-Pacific region, in addition to significant operations in the United States, Europe, and the Middle East.

Frequently Asked Questions

What is the significance of VCI Global's acquisition?

The acquisition signifies VCI Global's entry into the renewable energy market, specifically solar energy, and showcases their strategic expansion plans in Europe.

What technology is used in the solar farm?

The solar farm utilizes Huawei Technology inverters, ensuring over 90% efficiency in converting solar energy for use in the national grid.

What are the projected financial outcomes of the acquisition?

The solar farm is estimated to have a payback period of around 9 years, with strong returns expected throughout its 30-year operational life.

How does North Macedonia's energy policy influence VCI Global?

North Macedonia's ambitious renewable energy goals align with VCI Global's vision to build a sustainable energy portfolio in a country transitioning from fossil fuels to renewable sources.

Who can be contacted for more information about VCI Global?

For media inquiries, you can contact Landon Capital at info@landoncapital.net.

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