G Capital Bhd through its 90%-owned subsidiary, Gunung Hydropower Sdn Bhd (GHSB) has been successful in its application for a 10MW small hydropower project in the Sungai Perak, Salu project.
The application for the project was conducted by the Sustainable Energy Development Authority Malaysia (SEDA) via an e-bidding process in June 2020.
According to a Bursa Malaysia filing, GHSB being one of the successful bidders under SEDA’s Feed-in-Tariff (FiT) mechanism, will have a yearly energy yield of 68,000 megawatt-hour (MWh) at a fixed price of 28.98 sen per kilowatt-hour (kWh) for a period of 21 years.
Upon commissioning of the project, there is a potential revenue generation of RM19.7 mil per month and RM413 mil over the stipulated 21 years.
G Capital’s executive director Tan Sri Dr Ali Hamsa said the group is very pleased with the increase of tariff rates to 28.98 sen per kWH, as compared to the 25 sen per kWH received in March 2018.
“G Capital has now up to December 2025 to complete the construction of the project, and the FiT effective period of 21 years shall start from the commencement of operations date,” he noted.
With the new tariff, which is higher than the previous rate before revision by SEDA, G Capital will potentially enjoy an additional RM2.7 mil revenue per annum from the project.
As a result, the additional RM56.8 mil revenue boosts the potential project revenue from RM356 mil to RM413 mil in a total of 21 years.
“This approval was a result of the management’s relentless efforts to create value for our shareholders through the resubmission of Feed-in Approval Holder Certificate,” Ali pointed out.
“This will further strengthen our position towards becoming a leading renewable energy player in Malaysia. Hydropower promotes clean, efficient, guaranteed energy and price stability, as water flowing in a river is a domestic resource.”
The remaining 10% equity interest in GHSB is owned by Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC). PHREC acts as a stakeholder of the Perak State Government in the development of the small hydro industry in Perak.
With the support of Menteri Besar Incorporated (Perak), PHREC is the master developer for a total of 31 sites located all over the state with an estimated combined installed capacity of 240MW. – Dec 16, 2020
