G CAPITAL Bhd (GCAP), a Main Market-listed renewable energy solutions provider, has successfully secured four renewable energy power purchase agreement (REPPA) with Malaysia’s largest electricity utility Tenaga Nasional Bhd (TNB) through its wholly-owned subsidiary Northern Star Hydropower Sdn Bhd.
The combined capacity of the four high-head small hydropower plants in Pahang amounts to an impressive 26MW (megawatts), of which 12.5MW is generated in Hulu Dong while the remaining 13.5MW is derived from Batu Talam.
NS Hydropower has been made the feed-in approval holder (FiAH) by the Sustainable Energy Development Authority Malaysia (SEDA) for the plants.
Each of the REPPA spans a period of 21 years from the commercial operation date with operations scheduled to commence on Dec 6, 2027. Under the REPPA, TNB will purchase electricity from NS Hydropower at a feed-in-tariff (FiT) rate of 22.98 sen/ kWh (kilowatt-hour).
“We are thrilled to solidify our commitment to innovation and investment in renewable energy with this landmark deal. Our high-head hydropower plants in Pahang showcase the immense potential of clean energy in Malaysia,” commented GCAP’S executive director Datuk Yap Yee Ping who expressed her enthusiasm about this ground-breaking achievement.
“Envisaging a revenue potential of RM688 mil over a 21-year period on the back of estimated annual electricity production of 142.72 gigawatt-hours from estimated investment in project costs of RM300 mil, we are excited to make a meaningful contribution towards Malaysia’s sustainability goals.”
Moving forward, Yap believes the Malaysian government will double down in the green and sustainable sector as seen in Budget 2023 with Bank Negara Malaysia (BNM) injecting RM2 bil into sustainable technology start-ups and SMEs, allocating RM3 bil in the Green Technology Financing Scheme (GTFS) until 2025 as well as Bank Pembangunan Malaysia Bhd rolling out a RM1 bil Sustainable Development Financing Scheme.
She further updated that GCAP is currently procuring relevant approvals from Bursa Malaysia and Securities Commission Malaysia (SC) in respect of a renounceable rights issue of Redeemable Convertible Unsecured Loan Stocks (RCULS) announced on April 5 that involves the issuance of up to RM112.88 mil of 1.41 billion five-year, 8% RCULS at a nominal value of 8 sen each.
The proceeds raised will be utilised to part-financing developments of small hydropower projects in possession, particularly Sg. Geroh (2MW), Sg. Salu-A (10MW) and Sg. Temelong-Sg. Ibul (both 8MW). All these three small hydropower projects have already signed a 21-year REPPA with TNB earlier.
At the close of today’s trading, GCAP was up 1 sen or 2.25% to 45.5 sen with 1.1 million shares traded, thus valuing the company at RM147 mil. – July 3, 2023
