GCAP signs RM688mil 21-year REPPAs with TNB for small hydropower plants in Pahang

NST Mon, Jul 03, 2023 02:32pm - 9 months View Original


KUALA LUMPUR: G Capital Bhd's (GCAP) wholly-owned subsidiary, Northern Star Hydropower Sdn Bhd (NSH), has secured four renewable energy power purchase agreements (REPPA) with Tenaga Nasional Bhd (TNB) with a value of RM688 million.

The combined capacity of four high-head small hydropower plants in Pahang amounts to 26 MW. Of this, 12.5 MW is in Hulu Dong, while the remaining 13.5 MW is in Batu Talam.

With this landmark deal, GCAP executive director Datuk Yap Yee Ping said the company has successfully solidified its commitment to innovation and investment in renewable energy.

"Our high-head hydropower plants in Pahang showcase the immense potential of clean energy in Malaysia.

"Envisaging a revenue potential of RM688 million over 21 years on the back of estimated annual electricity production of 142.72 gigawatt-hours from estimated investment in project costs of RM300 million, we are excited to make a meaningful contribution towards Malaysia's sustainability goals," she said in a statement today.

NSH has been granted as a feed-in approval holder (FiAH) by the Sustainable Energy Development Authority Malaysia (SEDA) for the plants.

Each REPPA spans twenty-one years from the commercial operation date (COD), with operations scheduled to commence on December 6, 2027.

Under the REPPA, TNB will purchase electricity from NSH at a feed-in-tariff (FiT) rate of RM0.2298 per kilowatt-hour (kWh).

"This is a significant development for us, as it signifies our dedication to sustainability and clean energy.

"We take great pride in actively participating in the renewable energy revolution unfolding in our country," Yap said.

She believes the government will double down in the green and sustainable sector as seen in Budget 2023, where Bank Negara Malaysia injecting RM2 billion into sustainable technology start-ups and small and medium enterprises (SMEs), RM3 billion allocation in the Green Technology Financing Scheme (GTFS) until 2025 and RM1 billion Sustainable Development Financing Scheme by Bank Pembangunan Malaysia Bhd.

She further updated that GCAP is currently procuring relevant approvals from Bursa Malaysia and the Securities Commission for a renounceable rights issue of redeemable convertible unsecured loan stocks (RCULS) announced on April 5, 2023, that involves the issuance of up to RM112.88 million of 1.411 billion five-year, 8.0 per cent RCULS at RM0.08 each.

The proceeds raised will be utilised to part-financing developments of small hydropower projects in possession, particularly 2.00MW Sg Geroh, 10.00 MW Sg Salu, 8.00 MW Sg Temelong and Sg Ibul.

All these three small hydropower projects have already signed a 21-year REPPA with TNB earlier.

Yap is optimistic about the success of such fundraising exercises in helping accelerate progress toward a cleaner, more sustainable future for all Malaysians.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

BURSA 7.470
GCAP 0.365
TENAGA 11.600

Comments

Login to comment.