G Capital Bhd and its subsidiaries (GCAP group) has strengthened its position in the renewable energy segment after having signed a 21-year renewable energy power purchase agreement (REPPA) with Malaysia’s largest electricity utility Tenaga Nasional Bhd (TNB).
The group’s 96%-owned subsidiary Gunung Hydropower Sdn Bhd has on Aug 12 signed a REPPA with TNB for a feed-in tariff (FiT) concession period of 21 years for electricity to be generated from its 10 megawatt (MW) low-head mini-hydropower plant situated in Sungai Perak (Salu).
“We’re proud with yet another great achievement through the inking of the REPPA with TNB four months ahead of the due date on Dec 15,” commented GCAP’s executive director Tan Sri Dr Ali Hamsa.
“This signifies a vote of confidence from TNB into the quality and completeness of preparation of Gunung Hydropower and the GCAP group to advance to the next level of completing and commissioning the plant by Dec 15, 2025.”
According to Ali, the REPPA is envisaged to bring a potential revenue of more than RM400 mil to the GCAP group over a span of 21 years from the date of completion and commissioning of the plant.
“This is based on the FiT rate of 28.98 sen per kilowatt-hour and estimated annual production of 68-gigawatt hours of electricity to be generated from the plant,” he added.
GCAP currently has two strong renewable energy assets on the plate – mini-hydropower plants through its stake in Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC) and solar energy projects through its recently completed acquisition of Solarcity Malaysia Sdn Bhd which will help the group to reduce its reliance on the transportation services sector.
Currently, its solar power business arm, Solarcity Malaysia, has already bagged a total of 16.6MW of power purchase agreement.
At 4.05pm, GCAP was up 0.5 sen or 7.3% to 73.5 sen with 870,900 shares traded, thus valuing the company at RM236 mil. – Aug 19, 2021
