G Capital Bhd (GCAP) through its 70%-owned subsidiary Solarcity Malaysia Sdn has completed and commenced operation of a 7.0 MWp (megawatt peak) solar photovoltaic (PV) electric power generation system in Batu Pahat (Johor) for Evergreen Fibreboard Bhd.
The fulfilment of the contract pursuant to a power purchase agreement (PPA) inked on June 17 last year brings the total solar capacity in GCAP to 15.3 MWp which would generate yearly revenue potential of no less than RM4 mil for the 25-year PPA.
Recurring and sustainable top-line and cash flows will serve as a launching pad to fuel GCAP group’s growth forward.
The Main Market-listed Evergreen is involved in the manufacturing and sale of wooden products such as fibreboard, furniture, wood pellet, plywood, and urea-formaldehyde concentrate and adhesive products.
Having taken a breather a hustling three consecutive power-up in 1Q 2022, Evergreen’s 7.0MWp solar PV system marks Solarcity’s maiden installation capacity exceeding 5MWp under the Energy Commission Malaysia’s licensing guideline under the Electricity Supply Act 1990.
Consequently, this pushes the capacity of solar PV system commissioned by GCAP to a double digit 15.3MWp.
GCAP’s executive director Datuk Yap Yee Ping said the group started seedling into solar PV projects in 2021.
“Today, we are proud to announce the commissioning of our fourth solar PV system in 2022, rejoicing after three back-to-back excitement in completion and commissioning 7.2MWp across peninsula Malaysia in 1Q 2022,” she commented.
Yap remains optimistic towards the growth of GCAP’s solar division. She believes there is still huge potential to tap in the industry whereby small and medium-sized business owners spanning commercial and industrial sectors can leverage green energy that the GCAP group is offering.
This would enable the business owners to enjoy cost savings from electricity while embracing an environmental, social, and corporate governance (ESG) transformation which is the current big thing in Malaysia’s corporate sector.
“No doubt that the push factor for sustainability on top of ever-growing cost-conscious in the post-COVID era has pushed everyone into RE (renewable energy)-related affairs,” envisages Yap.
“We have distinguished ourselves from some of the other peers with the vote of confidence from prospects when our track record of completion and commissioning speaks for us in our journey as RE ambassador.”
Currently, GCAP has two strong RE assets on its plate – a mini-hydropower plant through Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC) and solar power projects through Solarcity Malaysia which are both poised to reduce the group’s reliance on its transportation services business segment.
At the close of yesterday’s (July 1) trading, GCAP was down 2 sen or 3.85% to 50 sen with 176,700 shares traded, thus valuing the company at RM160 mil. – July 2, 2022
