GCAP signs 25-year Solar PPA with Chin Well subsidiaries for total capacity of 5.38MWp
KUCHING: G Capital Bhd’s (GCAP) 70 per cent-owned subsidiary Solarcity Malaysia Sdn Bhd (Solarcity) has signed a 25-year Solar Power Purchase Agreement (PPA) with Chin Well Fasteners Co Sdn Bhd (Chin Well Fasteners) and Chin Herr Industries (M) Sdn Bhd (Chin Herr).
A filing with Bursa Malaysia on May 9 showed that Solarcity will design, construct, install, own, operate and maintain solar photovoltaic energy generating system (solar PV system) with a capacity of 2,380.32 KWp and 3,000.24 KWp, respectively for Chin Well Fasteners and Chin Herr, aggregating a total capacity of 5,380.56 Kwp.
Both Chin Well Fasteners and Chin Herr are whollyowned subsidiaries of Chin Well Holdings Bhd (Chin Well), a public limited company listed on the Main Market of Bursa Malaysia Securities Bhd.
“We welcome and pleased to witness Chin Well group of companies transitioning into renewable energy (RE),” GCAP executive director Datuk Yap Yee Ping said.
“The installation of the solarpower generating facilities shall reduce Chin Well’s energy expenditure and their carbon footprint, which is in line with Malaysia’s RE agenda.
According to the filing, both plants are expected to achieve the commercial operation date by the 4Q22 and thereafter is expected to contribute positively to the future earnings of GCAP.
“With this winning of 5.38MW PPA, Solarcity has bagged a total of 30.75MW PPA since GCAP assumed 70 per cent ownership February 2021.”
Since GCAP ventured into Solar energy sector in February
2021, the group has powered 8.3MWp solar PV system, which would start contributing to the group’s sustainable and recurring cashflow from this year onwards.
The first solar PV system was powered up in September 2021 for De-Luxe Food Services Sdn Bhd (1.1MWp) followed by Muda Pasifik Sdn Bhd (1.2MWp in January 2022) and Muda Paper Mills Sdn Bhd (3.0MWp in February 2022) and Muda Paper Converting Sdn Bhd (3.0MWp in March 2022).
“The signing of these two PPAs augur well with GCAP’s proposed rights issue of redeemable convertible unsecured loan stocks.
“Upon full subscription of the RCULS, up to RM4.8 million of the proceeds will be used to partfinance the solar PV systems for these two PPAs.
“With bank project-financing facility funding the remaining of the project costs, we are expecting these two solar PV systems to reach commercial operation date by October 2022 and contribute positively to the group’s cash inflows and earnings thereafter.
“I’m pleased with shareholders’ nods to the proposed rights issue from the extraordinary general meeting (EGM) taken place on April 27, 2022 and optimistic to eventual full subscriptions from the shareholders.