GCAP-TNB ink 21-year hydropower energy power purchase agreement

MAIN Market-listed G Capital Bhd (GCAP) has solidified its foothold in the renewable energy (RE) sector following the inking of a renewable energy power purchase agreement (REPPA) between its 96%-owned subsidiary Gunung Hydropower Sdn Bhd and utility giant Tenaga Nasional Bhd (TNB) on Dec 9.

According to GCAP’s Bursa Malaysia filing, the 21-year REPPA will commence from the commercial operation date which is scheduled to start from May 11, 2027.

Under the REPPA, TNB will purchase electricity from Gunung Hydropower at a Feed-in-Tariff (FiT) rate of 24.6 sen per kilowatt-hour (kWh).

Gunung Hydropower has been granted the feed-in-approval by the Sustainable Energy Development Authority Malaysia (SEDA) in respect of its 8.0 megawatt (MW) high-head mini-hydropower plant situated on Sungai Temelong Ibul which is in the vicinity of the Lenggong District in Perak.

The filing with Bursa Malaysia also stated that the GCAP envisages a potential revenue of more than RM200.89 mil over the 21-year period from the date of commission and completion of the plant (based on the FiT rate of 24.6 sen/kWh and the plant’s estimated annual production of 38.89-gigawatt hours of electricity).

Datuk Yap Yee Ping

“We’re pleased to sign the REPPA ahead of the due date in February 2023, ending our year 2022 well,” commented GCAP’s executive director Datuk Yap Yee Ping.

“Reflecting our achievements this year, we have done well by securing 10MW REPPA with TNB for small hydropower projects and successful commissioning of solar photovoltaic (PV) projects of 17.41MWp (Megawatt peak) as well as progressing towards completing our non-revenue water projects in hand.”

Added Yap: “We remained committed and optimistic towards the 2023 prospects of our sustainable-linked businesses.”

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 10.03am, GCAP was up 1 sen or 2.15% to 47.5 sen with 51,500 shares traded, thus valuing the company at RM152 mil. – Dec 28, 2022

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