RENEWABLE energy (RE) looks set to be G Capital Bhd’s (GCAP) next pillar of growth as the group gradually diversifies away from its core business of transportation to include energy solutions by prioritising the RE segment.
Of the 30.7 megawatt peak (MWp) solar photovoltaic (PV) projects that it currently has, GCAP has thus far commissioned 8.3MWp and looking forward to commissioning the balance of 22.4MWp by 1Q 2023, according to its executive director Tan Sri Dr Ali Hamsa.
GCAP’s 70% owned subsidiary Solarcity Malaysia Sdn Bhd has on March 26 completed the installation and commenced operation of a 3.0MWp solar PV electric power generation system for Muda Paper Converting Sdn Bhd in accordance with a 25-year power purchase agreement (PPA) inked on Jan 21.
The third among many to come in 2022, this solar PV system was completed a month after another 3.0MWp facility for Muda Paper Mills Sdn Bhd in February this year.
Muda Paper Converting is a wholly-owned subsidiary of Muda Holdings Bhd, a company listed on the Main Market of Bursa Malaysia. The Muda group is principally 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.
“I am pleased with GCAP’s 2022 prospects with us moving into endemic upbeat with initiation of energy generation from our solar PV systems,” commented Ali. “I was in overjoy sensation when we evidenced three power up in three consecutive months in 1Q 2022 alone.”
Prior to completing its latest project, the group has been marking its renewable energy (RE) footprints over the entire Peninsular Malaysia since 3Q 2021 by powering up a 1.1MWp solar PV System in Selangor (September 2021), 1.2MWp Solar PV system in Johor (January 2022), 3.0MWp solar PV system in Penang (February 2022) and another 3.0 MWp solar PV system in Penang (March 2022).
Ali said GCAP’s push into the RE space supports the Government’s commitment to make Malaysia a carbon-neutral country by 2050 vis-à-vis the group’s innovative solutions to drive collective efforts among Malaysian corporates to shift towards RE.
“GCAP is pivoting on the success stories on RE and continue scaling up its solar power business division. By leveraging the PPA, we have been able to help with the transition into RE for business owners and corporates,” noted Ali. “Through the PPA entered with us, corporates also benefit from the cost-savings in their electricity bills.”
Above all else, the solar PV facilities will contribute positive cash flow as well as sustainable and recurring income for GCAP in line with the 25-year PPA. This puts GCAP on a strong footing to chart its next phase of growth in the RE business.
GCAP currently has two strong RE assets on its plate – solar PV system projects through Solarcity Malaysia and mini-hydropower plant through Perak Hydro Renewable Energy Corporation Sdn Bhd.
At the close of yesterday’s (March 29) trading, GCAP was up 1.5 sen or 3.03% to 51 sen with 1.33 million shares traded, thus valuing the company at RM164 mil. – March 29, 2022
