G CAPITAL Bhd’s (GCAP) foray into the renewable energy (RE) realm has been further fortified with its 70%-owned subsidiary Solarcity Malaysia Sdn Bhd inking solar power purchase agreements (PPA) with Federal Packages Sdn Bhd yesterday (July 27).
Under the PPA, Solarcity will design, construct, install, own, operate and maintain a solar photovoltaic energy generating system (solar PV system) with a 5,500 KWp (kilowatt peak) capacity at the premises of Federal Packages which is located in Simpang Ampat, Penang.
Federal Packages is a wholly-owned subsidiary of Muda Holdings Bhd which is listed on the Main Market of Bursa Malaysia. The Muda group is involved in paper milling and manufacturing business with a wide range of products, including mill, corrugated and packaging, paper bags and paper-based stationery products.
“We are pleased with another vote of confidence from Muda, evidencing our long-term RE partnership,” commented GCAP’s executive director Datuk Yap Yee Ping. “We welcome this additional 5.5MWp (megawatt peak) award after we commissioned the 7.2MWp solar PV system to subsidiaries of Muda Holdings in 1Q 2022.”
Since early 2022, GCAP has successfully powered up four solar PV systems, aggregating 14.2MWp. The group currently has a total of 15.3 MW solar-powered plants running via long-term PPA with clients.
“We believe our commitment and successful track record are testimonial or strong enough call to action for others to join us in the RE journey and embrace green energy,” noted Yap.
According to a Bursa Malaysia filing, the FP plant which is expected to achieve a commercial operation date by 1Q 2023 shall contribute positively to the future earnings of GCAP thereafter.
Yap remains optimistic about the growth of GCAP group’s solar division given there is still immense scaling potential to help business owners leverage green energy.
“There is still an abundance of growth opportunities with solar energy. Everyone should consider maximising the potential of their roof, vacant lands and ponds to harness green energy. We are here to help.” she added.
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 today’s trading, GCAP which was untraded at 50 sen is valued at RM160 mil. – July 28, 2022
