G Capital inks renewable energy PPA with Tenaga
KUALA LUMPUR: G Capital Bhd's 96%-owned subsidiary Gunung Hydropower Sdn Bhd has entered into a renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd.
In a filing with Bursa Malaysia, the group said Gunung Hydropower has succeeded in entering the REPPA with Tenaga ahead of schedule of the due date on Dec 15, 2021.
On Dec 15, 2020, Gunung Hydropower was granted feed-in approval by the Sustainable Energy Development Authority Malaysia in respect of the 10MW low-head mini-hydropower plant on Sungai Perak, Salu, in the vicinity of Lenggong District, Perak.
The REPPA is for a period of 21 years from the commercial operations date, scheduled to start from Dec 15, 2025.
Pursuant to the REPPA, Tenaga will purchase electricity from Gunung Hydropower at a feed-in tariff rate (FiT) of 28.98 sen per kilowatt-hour.
G Capital envisages a potential revenue of more than RM400mil over a span of 21 years from the date of the commission and completion of the plant based on the FiT rate and an estimated annual production of 68 gigawatt hour of electricity.