Tan Sri Hamdan Mohamad Hamdan said within the next three to five years, Ranhill would expand its wastewater business in China
KUALA LUMPUR: Ranhill Holdings Bhd, which is involved in water supply services and power sector, aims to increase its power generation capacity to 1,000 megawatts (MW) by 2020 from 380 MW currently.
President and chief executive Tan Sri Hamdan Mohamad said to meet this target, the company was focusing on supplying renewable energy such as solar, wind and geothermal, while also looking at potential acquisition of existing power plants when the opportunities arise.
“This is in line with the Malaysian National Renewable Energy Policy and Action Plan to expand the use of renewable energy to 2,000 MW by 2020 and to achieve optimum use of renewable energy in the next three years,” he told reporters after the company’s AGM in Kuala Lumpur on Tuesday.
Currently, the company operates two combined cycle gas turbine power plant in Kota Kinabalu, Sabah with a capacity of 190 MW each.
Hamdan said the company had also been notified by the Energy Commission (EC) on the approval from the Energy, Green Technology and Water Ministry for the 300 MW combined cycle gas turbine power plant proposed last year, which would be undertaken through a private consortium.
He said the consortium was instructed to begin negotiations with Petroliam Nasional Bhd and the company identified by the Malaysian Government to develop the Trans-Sabah Gas Pipeline, to ascertain the terms and conditions of the gas supply required for the project and a letter of award would be issued by the EC after the terms of the gas supply agreement had been determined.
“We hope to start construction by end of this year and commence operation by 2020,” he said.
He said by increasing the generation capacity, the company was also aiming to balance its business portfolio between water supply services and power sector to 60:40 by 2020 from 70:30 currently.
He added that the company also aimed to increase its existing power plant capacity through future investment in overseas projects in South-East Asian countries such as Thailand and Myanmar.
On water supply services, Hamdan said the planned RM800mil investment by Pengurusan Asset Air Bhd within the next three years was expected to improve water distribution in the state especially in the state capital, Johor Baru, which is expected to see a reduction in non-revenue water derived from pipe leakages to between 12% and 15% from 20% currently.
]Via its subsidiary SAJ Ranhill Sdn Bhd, Ranhill has been granted an exclusive licence by the Energy, Green Technology and Water Ministry to provide source-to-tap water supply services with total capacity of 1,986 million litres per day (MLD) to end-customers in Johor.
On overseas operations, Hamdan said the company was keen to leverage its partnership with China’s SIIC Environment Holdings Ltd to expand its presence in the region’s water services business.
He said China, under the One Belt One Road initiative, had been very active in terms of investing in the region.
Ranhill operates water concession assets through its subsidiary, Ranhill Water Technologies (Cayman) Ltd, in China with a total capacity of 260 MLD and in Thailand with total capacity of 102 MLD. - Bernama
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