KUALA LUMPUR (Dec 27): G Capital Bhd’s (GCap) 96%-owned subsidiary Gunung Hydropower Sdn Bhd has signed a 21-year renewable energy power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB).

Under the deal, the utilities giant will buy electricity generated by GCap’s Perak mini-hydropower plant at a feed-in-tariff (FiT) rate of 24.6 sen per kilowatt hour (kWh).

According to a statement on Tuesday (Dec 27), Gunung Hydropwer had entered into the deal with TNB on Dec 9, whereby the PPA will commence from the commercial operation date of the plant which is slated for May 11, 2027.

The high-head mini-hydropower plant is located in Sungai Temelong Ibul, in the Lenggong district of Perak, and has a capacity of eight megawatts (MW).

Gunung Hydropower was granted the feed-in approval by the Sustainable Energy Development Authority in respect of the hydropower plant.

According to a Bursa Malaysia filing, the group aims to generate potential revenue of over RM200.89 million over the PPA period, from the date of the commission and completion of the plant, based on the FiT rate of 24.6 sen per kWh and its estimated annual production of 38.89-gigawatt hours of electricity.

“We’re pleased to ink the [renewable energy PPA] ahead of the due date in February 2023, ending our year 2022 well,” said GCap executive director Datuk Yap Yee Ping.

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

“We remained committed and optimistic towards the 2023 prospects of our sustainable-linked businesses,” she said.

GCap closed down two sen or 4.12% to 46.5 sen, for a market capitalisation of RM147.6 million.