G CAPITAL Bhd (GCAP) via its 74.64%-owned subsidiary Kundur Hydro R E Sdn Bhd has on Nov 7 inked a renewable energy (RE) power purchase agreement (REPPA) with utility giant Tenaga Nasional Bhd which is capable of generating an annual revenue of RM3.14 mil.
The feed-in approval in respect of the 2.0MW (megawatt) high-head mini-hydropower plant situated on Sungai Geroh in the vicinity of Kampar District, Perak was only granted by the Sustainable Energy Development Authority Malaysia (SEDA) to KHRE in May this year.
In spite of that, KHRE has succeeded in entering into a REPPA with Tenaga Nasional ahead of the due date of Feb 11, 2023.
The REPPA will be for a period of 21 years from the commercial operation date whereby GCAP has envisaged the plant to start operating on or before May 11, 2027.
Under the REPPA, TNB will purchase electricity from KHRE at a Feed-in-Tariff (FiT) rate of 24.61 sen per kilowatt-hour (kWh).
Based on the estimated annual production of 10.27-gigawatt hours of electricity, the plant could potentially generate RM53.1 mil revenue over 21 years from the commission date.
“This REPPA marks yet another milestone for the group as we manoeuvre towards becoming one of the leading RE players in Malaysia,” commented GCAP’s executive director Datuk Yap Yee Ping.
“To date, GCAP has interests in three mini-hydropower plants in operation with 29MW of generation capacity. With the Government’s goals to increase the use of RE to 31% in 2025 and 40% in 2035, we are optimistic that the RE sector has a promising prospect in the long run.”
Yap said GCAP has throughout the years been forging various PPAs on the development of mini-hydropower projects as well as that of its solar photovoltaic (solar PV) business.
“We have also commissioned some solar PV system for our customers. We are at the right path of building a sustainable recurring income for the business,” 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 9.30am, GCAP was unchanged at 52 sen with 5,600 shares traded which valued the company at RM167 mil. – Nov 15, 2022
