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Kinergy Advancement acquires 9.6-megawatt mini-hydropower plant in Kedah

KUALA LUMPUR: Kinergy Advancement Bhd’s (KAB) wholly-owned subsidiary, KAB Energy Holdings Sdn Bhd (KEH), has acquired a 9.6MW mini-hydropower plant in Kedah, marking another strategic move forward in our renewable energy (RE) portfolio in the ASEAN region.

Kinergy Advancement Bhd executive deputy chairman and group managing director Datuk Lai Keng Onn said the acquisition boosts the company’s mini-hydropower total installed capacity to 20.6MW.

This acquisition by KEH involves acquiring the entire stake of Tunjang Tenaga Sdn Bhd (TTSB), which owns an 80 per cent stake in SDF Hydro Sdn Bhd (SHSB).

A filing with Bursa Malaysia shows that the acquisition deal was signed by KEH and Vizione Energy Sdn Bhd (VESB), a wholly-owned subsidiary of Vizione Holdings Bhd (VHB).

SHSB operates a mini-hydropower plant at Pedu Dam, Kedah, underlining KAB’s commitment to environmental sustainability in the ASEAN region.

The other 20 per cent is owned by Menteri Besar Incorporated (MBI) Kedah, the state investment arm.

The Pedu Dam plant boasts a total approved installed capacity of 9.6MW, with a net export capacity of 8.0MW approved by the Tenaga Nasional Bhd (TNB) substation.

This project has a 21-year concession period starting from the feed-in tariff commencement date scheduled on April 30, 2027.

KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said  building upon the company’s recent acquisition of the maiden 11MW mini-hydropower plant in North Sumatera, Indonesia, in August 2023, this investment represents a crucial move toward realising KAB’s vision of leading sustainable energy development in the region.

“By harnessing the untapped potential of Pedu Dam, we anticipate making substantial advancements in renewable energy generation, furthering Malaysia’s environmental sustainability objectives,” he said in a statement.

He said hydropower plants stand out as a key contributor to renewable energy production and generation due to their capacity to deliver stable energy outputs.

Establishing itself as dependable energy sources and solutions, hydropower facilities ensure consistent production and generation of renewable energy.

Lai also emphasised the minimal environmental, social, and governance (ESG) concerns associated with this hydropower plant, highlighting that Pedu Dam’s completion in 1969 has since served as a cornerstone for the agricultural growth of 96,558 hectares of land in Kedah and Perlis.

The strategic location in the district of Padang Terap recognises the dam’s importance in water management and its potential in renewable energy generation.

“Adding this new mini-hydropower plant into our renewable energy portfolio strengthens our position as a holistic energy and engineering solutions provider, further expanding our footprint in sustainable energy across ASEAN.

“Completing these renewable projects in North Sumatra and Kedah, KAB’s mini-hydropower total installed capacity will be elevated to 20.6MW.

“This reflects a beneficial increase in KAB’s long-term recurring income, facilitated by established power purchase agreements in Malaysia and Indonesia,” Lai said.

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