KUALA LUMPUR (Sept 17): Gunung Capital Bhd’s 70%-owned subsidiary Gunung Hydropower Sdn Bhd (GHSB) has received two duly executed Renewable Energy Power Purchase Agreements (REPPA) from Tenaga Nasional Bhd (TNB).

The REPPAs is in relation to the proposed joint venture with Perak Hydro Renewable Energy Corporation Sdn Bhd, to jointly carry out the development of selected small hydropower plants in Perak on a Build Operate and Own concept, and under the Sustainable Energy Development Authority Feed-In-Tariff (FiT) Programme.

In a filing with the exchange, Gunung said the REPPAs have been executed for GHSB’s 10 MW installed capacity small hydropower site at Pulau Tengah, Chenderoh, Sungai Perak, and for GHSB’s 10MW installed capacity small hydropower site at Pulau Temelong, Temelong, Sungai Perak.

“Both REPPAs are for a FiT concession period of 21 years for electricity generated from GHSB’s small hydropower sites, at a FiT rate of 24 sen per kilowatt hour,” Gunung said.

The commence date of the FiT concession period is Dec 29, 2016.

“The signing of the REPPAs with TNB is expected to have a positive effect on the earnings of Gunung for the financial year ending December 2017 (after the commencement of the Fit concession period),” said Gunung.