SERBA DINAMIK PLANS RM700M INVESTMENT
Firm focusing on hydropower markets to achieve output target
SERBA Dinamik Holdings Bhd is setting aside RM700 million to help meet its goal of generating another 70 megawatts (MW) of electricity by year-end.
Group chief executive officer Datuk Mohd Abdul Karim Abdullah said this would increase its capital expenditure to about RM2 billion.
The investment was in line with its bid to become a serious player in the renewable energy sector.
“In order to achieve our yearend target of producing 200MW, we are focusing on hydropower markets such as Malaysia, Laos and Indonesia.
“It will be acquisition at the equity level under our asset ownership business model. Once the asset is up and running, we will become the operations and maintenance contractor.
“We have invested about RM1.3 billion for the 130MW produced so far. The remaining 70MW will cost us about RM700 million more,” he said on the sidelines of the Smart Living & Innovation Caucus conference, here, yesterday.
On the government’s target to increase electricity generation through renewable resources to 20 per cent by 2025, Karim said: “I think it is not impossible, although it is quite an ambitious target as it took us almost eight years to achieve two per cent now.
“It needs serious commitment from the entire industry as well as the financial institutions.”
Karim also said it was important to deregularise power supply and let businesses ascertain the tariff.
“This will encourage competition and benefit the consumers.”
Serba Dinamik has gone big on green energy after acquiring 40 per cent stakes in three renewable energy companies in Perak and securing a job to build two hydropower plants in Laos for RM268.8 million.