Malaysian firm G Capital Bhd has signed a renewable energy power purchase agreement with Tenaga Nasional Bhd.
According to the agreement, TNB will purchase electricity from Gunung Hydropower at feed-in-tariff (FiT) rate of RM0.2460 per kWh.
The agreement will be effective for 21 years from the commercial operation date, which is likely to be in 2027. The plant is estimated to have an annual production of 38.89-gigawatt hours of electricity.
It has been informed that the Gunung Hydropower has received the feed-in-approval by the Sustainable Energy Development Authority Malaysia.
According to G Capital, it is likely to generate a revenue of more than RM200.89 million over 21 years from the date of the commission and completion of the plant.
Executive director Datuk Yap Yee Ping, was quoted in a statement, "We're pleased to ink the agreement ahead of the due date in February 2023, ending our year 2022 well.”
He further stated, "Reflecting our achievements this year, we have done well with securing 10MW REPPA 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."