Kpower unit wins bid for FIT quota application

PETALING JAYA: Kpower Bhd’s sub-subsidiary Mikrogrid Lestari Sdn Bhd has been selected as one of the successful bidders under the feed-in tariff (FIT) e-bidding exercise for small hydropower plants conducted by the Sustainable Energy Development Authority (Seda).

In a filing with Bursa Malaysia, the construction group said it had the winning bid to develop a small hydro power plant with a total capacity of 40.4MW in Gua Musang, Kelantan, with a basic FIT rate of 22.49 sen per kilowatt-hour.

It added that the feed-in approval certificate will be issued within 14 days upon fulfillment of the conditions set out by Seda.

Mikrogrid Lestari is 55% owned by Kpower RE Sdn Bhd, which in turn is wholly owned by Kpower.

Kpower executive chairman Mustakim Mat Nun said: “This is our second open-bid win after our solar win in 2021 that will enable us to diversify our income portfolio via solar and hydro.”

He said with this win and the recent proposal, its assets ownership under the renewable energy (RE) spectrum will generate in excess of 120MW, thus strengthening its concession-based recurring income for the long term.

“Globally, we are witnessing an ongoing worldwide energy shortage, environmental crisis and rising raw RE material costs.

“Along with this, we see rising concerns for climate change and sustainability as well as increased environmental, social and governance considerations,” he said in a statement.

As a responsible corporate citizen, Mustakim said Kpower’s goal is not only to be profitable and creating long-term value for its shareholders but also to preserve the world for future generations.

Looking at this, Kpower welcomed the government’s efforts to promote investment in RE sources such as the introduction of the FIT policy to achieve its goal of a low-carbon economy.

“Today’s win is yet another milestone we have notched that not only pushes us further to the forefront of the RE sector but also further solidifies our group’s renewed emphasis on the renewable, sustainable and green segment,” he added.