KUALA LUMPUR (Sept 28): Renewable energy and healthcare group Jentayu Sustainables Bhd has proposed to team up with a gas supplier to develop solar photovoltaic (PV) under the net energy metering scheme (NEM).

In a filing with Bursa Malaysia, Jentayu said it has signed an agreement with Petrolife Aero Sdn Bhd for the purpose of regulating the conditions for the formation of a joint venture firm, in which Jentayu will hold a 51% stake and Petrolife 49%.

Petrolife is in the business of sourcing and supplying liquified natural gas and natural gas to commercial and industrial entities in the country.

The government introduced NEM in November 2016 with a quota allocation of 500 MW up to the year 2020 to encourage Malaysia’s renewable energy uptake. Under the billing system, energy produced from the solar PV installation will be consumed first, and any excess will be exported to Tenaga Nasional Bhd at the prevailing displaced cost.

The 500MW quota under the NEM 2.0 was fully subscribed by Dec 31, 2020, and the government came out with NEM 3.0 to provide more opportunities to electricity consumers to install solar PV systems on the roofs of their premises to save on their electricity bill. NEM 3.0 is in effect from 2021 to 2023 and the total quota allocation is up to 800 MW.

Jentayu’s share price closed unchanged at 57 sen, giving the group a market capitalisation of RM201.35 million.