Kuala Lumpur: Terengganu is set to earn RM40 million each year from the initial phase of a floating solar project on Kenyir Lake, marking a strategic move towards reducing the state’s dependence on oil and gas.

According to BERNAMA News Agency, the revenue is anticipated to stem from Phase 1, Block 1 of the Kenyir Lake solar farm, which will generate 640 megawatts (MW) of solar energy upon becoming operational. Mohd Nurkhuzaini Ab. Rahman, chairman of the State Digital Economy, New Income, Trade, Industry and Green Technology Committee, highlighted that a significant portion of the income, RM37 million, will be derived from surface water usage fees paid to the Terengganu Water Resources Board (LAUT).

Additional financial benefits include RM1.2 million in permit fees to the state’s Forestry Department for land access to install cables connecting the solar array to Tenaga Nasional Bhd’s (TNB) power substation. Moreover, the Hulu Terengganu District Council, the Land and Mines Office, and the Department of Irrigation and Drainage are expected to collectively receive RM1.25 million in taxes and permit fees.

Mohd Nurkhuzaini revealed these revenue projections during the Terengganu State Legislative Assembly session in response to an inquiry from Khazan Che Mat (Bersatu-Seberang Takir). Besides financial gains, Phase 1, Block 1 of the project, part of a larger 2,500 MW solar initiative, is predicted to create jobs for up to 200 locals.

The tendering for the engineering, procurement, construction, and commissioning (EPCC) contract, valued at over RM2 billion, concluded on March 15. The project, situated on 38,000 hectares of artificial lakes, is among 111 high-impact projects identified by PLANMalaysia, the federal Department of Town and Country Planning.

This venture aligns with Terengganu’s long-term objective to adopt renewable energy solutions and lessen its reliance on limited fossil fuel resources.