KUALA TERENGGANU, April 16 (Bernama) -- Terengganu is poised to earn RM40 million annually from the first phase of a significant floating solar project on Kenyir Lake, in what is being seen as an important step in its transition away from oil and gas dependency.
The revenue is expected to flow from Phase 1, Block 1 of the Kenyir Lake solar farm, generating 640 megawatts (MW) of clean energy once operational.
State Digital Economy, New Income, Trade, Industry and Green Technology Committee chairman Mohd Nurkhuzaini Ab. Rahman noted that most of the projected income, RM37 million, will come from surface water usage fees paid to the Terengganu Water Resources Board (LAUT).
Additional earnings include RM1.2 million in permit fees to the state’s Forestry Department for land access to lay cables linking the floating solar array to Tenaga Nasional Bhd’s (TNB) power substation, he said.
The Hulu Terengganu District Council, the Land and Mines Office, and the Department of Irrigation and Drainage are also expected to receive a combined RM1.25 million in taxes and permit fees, he added.
Mohd Nurkhuzaini disclosed the revenue estimates during the Terengganu State Legislative Assembly sitting in response to a query from Khazan Che Mat (Bersatu-Seberang Takir) today.
Beyond its financial returns, Phase 1, Block 1 of the project, the first component of a more extensive 2,500 MW solar development, is also expected to generate employment for up to 200 residents.
Meanwhile, the tender process for the engineering, procurement, construction and commissioning (EPCC) contract, worth more than RM2 billion, closed on March 15.
The project sits on 38,000 hectares of man-made lakes and is one of 111 high-impact projects identified by PLANMalaysia (the federal Department of Town and Country Planning).
The initiative aligns with Terengganu’s long-term vision to embrace renewable energy and reduce reliance on finite fossil fuel resources.
--BERNAMA
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