KUALA LUMPUR (Nov 14): G Capital Bhd has entered into a 21-year renewable energy power purchase agreement (Reppa) with Tenaga Nasional Bhd (TNB).

According to its filing with Bursa Malaysia, the Reppa was inked via G Capital's 74.64%-owned subsidiary Hydro R E Sdn Bhd (KHRE). Under the deal, TNB will buy electricity from KHRE at a feed-in-tariff (FiT) rate of 24.61 sen per kilowatt hour.

The Reppa's tenure will start from the commercial operation date, which is scheduled to be May 11, 2027.

The announcement came after KHRE was granted in May this year the feed-in approval by the Sustainable Energy Development Authority Malaysia for a two-megawatt high-head mini hydro water plant in Sungai Geroh, Perak.

"The group is targeting to complete and commission the plant on or before May 11, 2027, envisaging a potential revenue of RM53.09 million to the group over a span of 21 years based on the FiT rate of 24.61 sen per kilowatt hour and [an] estimated annual production of 10.27 gigawatt hours of electricity to be generated from the plant," G Capital's filing further said.

G Capital's share price dipped 0.5 sen to close at 52 sen on Monday (Nov 14), giving it a market capitalisation of RM167 million.