Gunung Capital unit to buy 50% of hydro plant operator

PETALING JAYA: Gunung Capital Bhd’s 90%-owned subsidiary Gunung Hydropower Sdn Bhd proposes to acquire a 50% stake in Conso Hydro RE Sdn Bhd for RM2.5 million.
In a filing with the stock exchange, the company said the acquisition will allow it to consolidate its position in the renewable energy sector as Gunung Hydropower’s estimated installed capacity will increase from 20MW to 22MW.
Gunung Hydropower is developing two small hydro sites with a total estimated installed capacity of 20MW. Both sites have secured feed-in tariff (FiT) approval from the Sustainable Energy Development Authority (SEDA) and signed a renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd, for 21 years at a revised FiT rate of 25 sen per kWh.
Conso Hydro RE is involved in developing, maintaining and operating a 2MW installed capacity small hydro plant at Sungai Geruntum, Kampar, Perak. It has secured FiT approval from SEDA for its Sungai Geruntum site with a declared annual availability of 10,000 MWh. The FiT is expected to start on June 3.
Subsequently, Conso Hydro RE signed a REPPA with Tenaga Nasional for a 21-year effective period at a rate of 24 sen per kWh.
Gunung Capital will pay for the stake in Conso Hydro RE with internally generated funds.